Solar Mandate In California For New Residences Could Have Far-Reaching Impact As More States, Such As Massachusetts, Eye Similar Legislation To Boost Solar
California is the first state in the nation to mandate solar usage to drive electricity in residential buildings three stores or lower, but the trend to require solar in all new homes in California is being watched very carefully by other states. Massachusetts, for example, is looking at adopting similar legislation and other states are too, according to website Solar Industry.
The magazine’s online article reports that the California solar initiative represents a significant business development opportunity for solar installers. But the new law, taking effect statewide in California this month, could have far reaching long term impact as other states seek copycat mandates.
Solar roofing experts see the opportunity. Solar Integrated Roofing Corp. (OTC PINK: SIRC) is already aggressively acquiring other established solar roofing installers and projecting major gains in future revenue and market share. David Massey, CEO of SIRC, said his company seeks to become the dominant solar roofing company in the southern California market. Longer term, SIRC seeks a stock exchange uplisting as it grows and creates a national solar installation footprint.
A recent poll from CITE Research reported that some 70% of Americans support a new national solar home mandate, like that imposed by California. This is great potential news for solar installers and sets the stage for other states to turn a progressive initiative into a mainstream trend. The survey found that younger adults support the measure by 74% among respondents ages 25-34. Support was strongest in the West (72% in favor) with those surveyed in the Northeast second (71% in favor).
Tickers: Solar Integrated Roofing Corp. (OTC PINK: SIRC), SolarEdge Technologies, Inc. (NASDAQ: SEDG),, SunPowerCorp. (NASDAQ: SPWR), Canadian Solar Inc. (NASDAQ: CSIQ), Vivint Solar Inc. (NYSE: VSLR), Bank of America Securities (NYSE: BAC), and Credit Suisse (NYSE: CS).
New York, NY, January 8, 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, which went into effect in January 2020, may trigger other states, such as Massachusetts, to consider copycat legislation. American consumers surveyed endorse by 70% a nationwide home solar mandate, turning a progressive concept into a mainstream trend. Solar in new homes could develop into a national required market if mandates are passed by more states.
The potentially far-reaching solar mandate in California could have a ripple impact on other renewable energy conscious states. In Massachusetts, according to Roofing Contractor Magazine, two pending bills filed in the state Senate and House propose that nearly every new residential and commercial building be outfitted with solar panels. If approved, the bills would make Massachusetts the second state after California to modify building codes to mandate solar-driven electricity.
That would create a long term opportunity for solar installers, such as Solar Integrated Roofing Corp. (OTC PINK: SIRC). Growing in double digits both organically and by acquisition, Solar Integrated Roofing Corp. (OTC PINK: SIRC) is moving quickly to grow in an anticipated larger solar installer marketplace — not just in California, but other states, too. SIRC recently acquired solar installers McKay Roofing and Milholland Solar and Electric Roofing. To that end, it announced that it has secured $2.7 million in new financing in a non-dilutive structure to close on these two acquisitions.
Earlier, SIRC had also acquired 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.
David Massey, CEO of SIRC, has predicted that the larger SIRC company would report revenues of greater than $30 million for its February fiscal 2021 with 12-15% EBITDA margins. He added, “We feel that our stock, trading at less than a $4 million cap, is undervalued and yet to be recognized by the financial markets. 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), 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.
SolarEdge Technologies, Inc. (NASDAQ: SEDG) common stock, according to Investor’s Business Daily, rose 165% in calendar year 2019. The company has also posted double-digit revenue growth over the past nine quarters. The company is in the process of doubling its manufacturing capacity for inverters and power optimizers. On Tuesday, its stock dropped to $96.40 in after hours trading.
Vivint Solar Inc. (NYSE: VSLR) has a new credit facility with lenders including affiliates of Bank of America Securities (NYSE: BAC) and Credit Suisse (NYSE: CS). The $200 million revolving asset-based loan facility is intended to allow solar energy systems purchased in 2019 to qualify for a 30% Federal investment tax credit (ITC) by satisfying the 5% safe harbor method outlined by IRS notice 2018-59. It will also be used to refinance the company’s existing working capital credit facility scheduled to mature in 2020, the company announced.
Canadian Solar Inc. (NASDAQ: CSIQ) increased the size of its Board to six directors when it named Lauren C. Templeton as an independent director. It also named Karl E. Olsoni as a strategic advisor to its Board, effective January 1, 2020. In after hours trading yesterday, CSIQ stock closed at $21.76, off by $0.59.
SunPowerCorp. (NASDAQ: SPWR) has named Joanne Solomon Chief Financial Officer of Maxeon Solar Technologies, the spin-off from SunPower. In her new role, she will lead Maxeon Solar’s global finance, planning, accounting and information technology organizations.
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