GroSolar, a White River to acquire the residential solar division of Borrego Solar Systems, which operates in California and Massachusetts. No financial terms were disclosed. GroSolar has raised over $16 million from NGP Energy Technology Partners, SJF Ventures, Calvert Social Funds, and Allco Financial Group. Junction, Vermont-based solar energy startup, has agreed
Two of the nation’s leading solar power installers announced today that they have entered into an agreement for groSolar of White River Junction, Vt., to acquire the residential solar division of Borrego Solar Systems of El Cajon, Calif. Financial terms of the agreement were not disclosed. Borrego Solar residential division operates in California as well as Massachusetts.
As a result, groSolar will emerge as the fourth-largest residential solar power installer in the United States, while maintaining its national distribution and commercial operations as well. The firm, launched less than 10 years ago, will continue its rapid expansion and consolidation as the first truly North America-wide solar power company, with residential operations in nine states in addition to their commercial and distribution channels. NGP Energy Technology Partners and SJF Ventures, two of the premier energy technology private venture capital funds in the United States, have provided capital for groSolar through previous transactions.
With the purchase, the groSolar name will begin appearing at Borrego Solar’s residential locations in San Diego, Berkeley, Sonoma, Orange County, Silicon Valley, and Massachusetts.
In a related release, Borrego Solar today announced that the company will narrow its focus to its fast-growing Commercial and Government Divisions, while immediately expanding operations to New York and New Jersey. Commercial and Government projects comprised 75 percent of the company’s revenue in 2008. Borrego Solar, which recently announced a $14 million round of venture financing, will continue to maintain significant operations in New England and California. In addition to its corporate headquarters in El Cajon, Calif., the company currently operates regional offices in New England, the San Francisco Bay Area and New York.
groSolar officials expect the acquisition to benefit homeowners by making solar electric power even more affordable through groSolar’s advanced sales, marketing and installation capabilities . A homeowner can have a groSolar system installed in as little as two days—harnessing the sun’s power for electricity and / or hot water. Borrego will focus on the unique needs of commercial and government entities, designing and installing low-cost solar systems that can scale with organizations as they grow, while reducing the country’s dependence on non-renewable resources.
Jeff Wolfe, CEO of groSolar, said: “This is a great day for solar. Coupled with the new benefits in the Federal stimulus bill, groSolar is now poised to help with America’s energy independence and economic recovery, while making it simple, fast and affordable for customers to ‘go solar.’ We look forward to integrating the Borrego Solar residential division’s great reputation and quality into groSolar to benefit Californians.”
Wolfe added: “Dealers in groSolar’s existing distribution network will see immediate benefit, as we roll out additional best practices to serve our local installers, launch new programs to give homeowners easy access to solar power, and expand the largest distribution warehouse network in the industry and in California.”
“With the sale of our Residential Division to groSolar, we can better address growing demand within the commercial and government sectors while expanding geographically into new regional markets,” said Aaron Hall, Chairman and CEO of Borrego Solar. “Borrego was built on providing quality residential solar design and installation services for more than two decades, and we thank our customers and partners for their business and support during that time. groSolar has the same commitment to quality, excellence and service that earned us the trust of homeowners and partners throughout California and New England.”
groSolar has recently been on a rapid growth curve, with acquisitions of Energy Outfitters of Oregon in December 2006, and Chesapeake Solar of Maryland in July 2008. The same month, the company signed a $175 million, four-year purchase agreement with Evergreen Solar to assure supply of its photovoltaic solar panels. The company signed an exclusive North American distribution agreement in October 2008 with Motech Industries, a leading maker of inverters that turn electricity from photovoltaic solar panels into household electricity. groSolar also recently signed an exclusive distribution agreement for the PanelClaw flat roof solar mounting system.
groSolar has operations in 12 states as well as Canada – Vermont, New Jersey, New York, Connecticut, Massachusetts, Maryland, Delaware, Pennsylvania, Colorado, Oregon, Montana and California.
Jeff Wolfe appeared Dec. 11, 2008 on PBS-TV’s “This Old House,” showing how a Weston, Mass., couple quickly and affordably turned their modest 1970s-era house into a model for green technology. Before-and-after photos and how-tos may be seen at www.thisoldhouse.com. groSolar has also been featured on ABC-TV’s “Extreme Makeover: Home Edition.” Among its many large-scale projects was the recent installation of solar hot water heaters at Fenway Park, the Boston Red Sox ballpark.
Wolfe serves as chairman of the PV Division for the Solar Energy Industries Association, the leading solar energy trade group.
Borrego Solar finished 2008 with $60 million in revenue and more than $90 million in contracts, making it one of the country’s fastest growing solar companies. The company was the eleventh fastest growing private energy company according to Inc Magazine and #261 overall. Borrego has installed major systems on schools, affordable housing communities, grocery and retail businesses, and town and municipal facilities through California and New England.
Solar energy can be one of the best home improvement investments you make. Surveys have shown that for every $1,000 saved per year, $20,000 is added to a home’s value. Typical systems take two to five days to install, and the panels are guaranteed for 25 years.
groSolar is North America’s premier distributor, installer and integrator of solar energy solutions for residential and commercial installations. Founded in 1998, groSolar now encompass offices and warehouses across the continent, distributing solar electric and solar hot water systems from offices in VT, NJ, NY, CT, MA, MD, DE, PA, CO, OR, MT, CA, and Canada. groSolar integrates components from leading solar manufacturers including Evergreen Solar, PanelClaw, Motech, Heliodyne, SMA, Fronius and UniRac into simple solar energy solutions for customers that generate clean, reliable energy for decades. groSolar is a mission-driven company dedicated to providing high quality solar energy solutions and whole energy appreciation. groSolar’s venture capital investors include NGP Energy Technology Partners, SJF Ventures, and Calvert Social Investment Fund. Learn more at groSolar.com <http://www.groSolar.com> or call 800.374.4494 from 8am–5pm EST.
About Borrego Solar
Established in 1980, Borrego Solar Systems, Inc. is one of the nation’s leading designers and installers of commercial and government grid-connected solar electric power systems. Borrego Solar’s photovoltaic systems are efficient, reliable and cost-effective. With more than two decades of experience and more than 1,000 installations, Borrego Solar offers a complete line of design and installation services throughout California, New England, New York and New Jersey. For more information, visit www.borregosolar.com.
About NGP Energy Technology Partners
NGP Energy Technology Partners, L.P. is a Washington, D.C. based fund investing growth equity capital in companies providing technology-related products and services to the oil and gas, power, and alternative energy sectors. The fund is managed by investment professionals with extensive experience investing in virtually all types of energy technologies and a strong track record of helping companies grow, create value, and establish strategic partnerships. NGP Energy Technology Partners is an affiliate of NGP Energy Capital Management, a leading investment firm with over $9.6 billion of cumulative capital under management. www.ngpetp.com.
About SJF Ventures
SJF Ventures is a venture capital fund with offices in Durham, NC, and New York, NY. The fund focuses on the expanding cleantech, energy, business and web services, and consumer brand companies. SJF Ventures looks for experienced management teams that are driving exceptional growth and positively impacting the world. SJF led the Series A round for groSolar in the fall of 2006. Jeff Wolfe, the CEO of groSolar, will be a keynote speaker at the SJF Summit on the New Green Economy: How to Make it Work, June 2-3, 2009, Durham, NC being produced by SJF Advisory Services. For more information, visit www.sjfund.com.