Rush Is On For New Permits By California Builders As State Legislation Requiring All New Homes To Have Solar Goes Into Effect; Industry Sees 2020 Solar Surge
Like the California Gold Rush, builders have been rushing to obtain permits because this month California’s new requirement that all residences be equipped with solar goes into effect. Solar activity is seen surging by the industry as companies like Solar Integrated Roofing Corp. (OTC PINK: SIRC) is growing in double digits organically and by takeovers as the impact of the new statewide law is seen as a solar growth opportunity.
According to newspapers L.A. Times and the Orange County Register, requests from builders for new permits is spiking. The Register said that building permits jumped 600% in Irvine, California during the last three months of 2019 compared to the same period the prior two years. The L.A. Times reported that building permits there were overall down the first 10 months of 2019, but were 10% higher in October alone. Zillow reported that building permit increases were 11% higher in Los Angeles and Orange counties.
The L.A. Times wrote that in the last three years, some 16 communities — from Santa Monica to Fremont — approved energy standards for newly constructed homes. The new California law requires all single family or multi-family homes of three stories or fewer abide by the solar mandate. Where solar may have been a luxury option in the past, it will be a necessity in California starting this month.
Tickers: Solar Integrated Roofing Corp. (OTC PINK: SIRC), Target Corporation (NYSE: TGT), SunPowerCorp. (NASDAQ: SPWR), Canadian Solar Inc. (NASDAQ: CSIQ) and Vivint Solar Inc. (NYSE: VSLR).
New York, NY, January 6, 2020 — Stock Market Press is a leading financial news company that delivers up to date news. News on the wires today includes how California’s new law requiring solar on residential homes goes into effect in January 2020 and how Solar Integrated Roofing Corp. (OTC PINK: SIRC), with record solar revenues, received $2.7 million in non-dilutive financing to close its acquisitions of Milholland Solar and Electric Roofing and McKay Roofing. SIRC’s goal is to become the dominant solar roofing company in the southern California market, according to David Massey, CEO.
The institution of new legislation mandating solar on all new single family and multi family homes three stories and less beginning in January 2020 has triggered a rush on building permits the end of 2019, according to articles by the L.A. Times and Orange County Register. These papers reported gains of 10-11% in permit applications from builders in the closing months of last year. The California goal of the new law is for residential homes to reach net zero energy usage, the Times wrote.
As solar’s future is seen growing in California due to the new law, companies such as Solar Integrated Roofing Corp.(OTC PINK: SIRC) are projecting future growth. Growing both organically and by takeover, SIRC has been on a spree of acquisitions in the solar industry. Most recently, it received $2.7 million financing in a non-dilutive structure to close on two takeovers: Milholland and McKay.
David Massey, CEO, said, “With these companies under the SIRC umbrella, we feel confident that we can generate more than $30 million in revenues for its February fiscal 2021 with 12-15% EBITDA margins. We feel that our stock, trading at less than a $4 million cap, is undervalued and yet to be recognized by the financial markets.”
He added, “We are staying focused on what we need to do to enhance shareholder value and grow our company. We will continue to acquire companies that are accretive to our bottom line while expanding revenues and margins with the current companies already acquired.”
SIRC (OTC PINK: SIRC) previously recorded a series of other takeovers in the solar installation sector this year. They include, in addition to Milholland and McKay Roofing ($5 million in trailing annual revenues), Secure Roofing and Solar ($5 million in trailing annual revenues), Montross ($2.5 million in trailing annual sales) and Narrate, Inc., a marketing firm which has a targeted goal of $3 million monthly by summer 2020. SIRC is acquiring like companies to build a footprint nationally in the solar industry.
SIRC (OTC PINK: SIRC), specializing in both commercial and residential solar installation, reported record revenues of $1.2 million for the month of November. When adding pro forma revenue from its recent acquisition of Milholland, Solar Integrated Roofing Corp. generated more than $2.2 million in November sales, or 18% higher than October. SIRC reported sales of $4.9 million in FY 2019.
Target Corporation (NYSE: TGT) has completed the installation of a solar roof on its 500th location. That means the corporation is one-fourth on its way of reaching its goal of attaining 100% of its electricity from renewable sources by 2030. The roof on top of its Napa, California store was its 500th solar installation, Target announced.
Earlier in 2019, Target (NYSE: TGT) announced announced plans to reduce absolute Scope 1, 2 and 3 greenhouse gas emissions by 30% below 2017 levels by 2030, reported site Environment and Energy Leader.
Vivint Solar (NYSE: VSLR) has announced it has entered and closed a $200 million asset based loan credit facility to help fund the company in 2020 and beyond. The funds will be used to help purchase equipment and receive attractive advance rates on new projects, it said. The monies will also be used to refinance an existing working capital facility, VSLR said.
SunPowerCorp. (NASDAQ: SPWR) has won pv magazine’s 2019 Sustainability Award, a solar industry award judged by an independent panel. It received the award from the global publication. The company is a manufacturer of solar panels.
Canadian Solar Inc. (NASDAQ: CSIQ) has completed its first solar project in Taiwan. It is expected to generate 2,505 megawatt hour (MWh) of solar electricity per year, the company said. Taiwan is a rapidly expanding solar market, creating opportunities for prominent solar industry players, the company announced.
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