At least that’s what’s being reported by The San Francisco Chronicle. The newspaper reported yesterday (March 25) that SunRun and Sungevity, two of the largest residential solar companies in the U.S. are partnering in a non-binding agreement to install solar on at least 10,000 homes.
The companies are reportedly hoping to install accumulatively 70 megawatts through the new partnership, which will play on each of the companies’ key strengths. Sungevity will focus on customer recruitment while Sunrun will finance and install the arrays, the newspaper reports.
Both companies offer third-party ownership (TPO) options to homeowners allowing them to go solar for little or no cash, a market that’s increasingly dominated by a handful of names including SunEdison, Sunrun, Sungevity, SolarCity and Vivint Solar, all of which are competing for market share.
In fact, also just yesterday, SolarCity announced the completion of a new $250 million fund that will allow it to install roughly 200 megawatts of solar on rooftops across the U.S.—and to use securities refinance the fund once all the homes in the fund are installed. That deal will help the company retain its place as the nation’s largest rooftop solar installer, at least for now.
Under the new partnership Sungevity and SunRun might be better positioned to challenge SolarCity. But SolarCity reportedly installs one of every three residential arrays already.
This new partnership, which also allows both companies to continue to pursue their own customers and other partnerships, is just the latest as third-party ownership (TPO) solar installers continue to evolve.
More recently TPOs have started purchasing other solar companies as well. SolarCity kicked it off last October with the purchase of racking equipment maker Zep Solar. This past January Vivint Solar purchased Solmetric, a solar measuring and testing company, and Sunrun purchased residential operations of REC Solar and SnapNRack—another racking equipment maker.
Basically, 2014 is quickly becoming a very interesting year in which to see some consolidation in the solar industry as companies—at least on the installer side—compete for marketshare. There companies are competing in a growing customer market. On the other side of the equation, solar module manufacturers acquisitions have come as some companies have run into financial issues.Tweet