The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Solar power in the United States is booming.

According to the Solar Energy Industries Association, solar accounted for 43% of all new electricity-generating capacity added in the U.S. in 2020 — representing solar’s largest-ever share of new generating capacity and ranking first among all technologies for the second year in a row.

From just 0.34 gigawatts (GW) in 2008, U.S. solar power capacity has grown to an estimated 97.2 GW today — enough to power the equivalent of 18 million average American homes.

Governments and utilities worldwide have sent their blessings in the form of tax breaks and net metering policies to promote their renewable energy and energy security targets. In the U.S., the new administration focuses on the significant expansion of clean energy with plans to invest $400 billion in the next decade.

The costs of solar have also fallen dramatically, with the average-size residential solar energy system decreasing 55% between 2010 and 2018, from $40,000 to $18,000. Solar panel installation costs have also been reduced, costing less than $3 per watt, a whopping 65% decrease from $8.50 per watt 10 years ago.

California continues to be the largest residential solar market, installing nearly 300MW in Q3 2019, breaking its own quarterly record. In 2020, California Building Standards Commission required solar on all new homes, which is a huge deal because California builds 80,000 new homes annually. The state also plans to prohibit the sale of all new cars and light trucks that run on gas starting in 2035, adding an estimated 25%-30% increase to electric home usage.

Solar Integrated Roofing Corporation’s (SIRC) family of companies is well-positioned to benefit from the ongoing transition to sustainable energy as it provides a one-stop solar solution.

About SIRC

SIRC (OTCMKTS: SIRC) is an integrated, single-source solar power and roofing systems installation platform company specializing in commercial and residential properties.

The company has expanded into multiple promising verticals — from battery backup and electric vehicle (EV) charging stations to roofing, HVAC and related electrical contracting work. Its complementary businesses provide significant cross-selling opportunities across the verticals.

SIRC has well-known solar and roofing brands in Southern California and the Southeast, with over 18,000 solar customers since 2007. Some brands under SIRC include prominent names such as Secure Roofing & Solar, Montross Companies Inc., Enerev Solar, PLEMCo, Cornerstone Construction and McKay Roofing among others.

It has an established relationship with local government agencies, administrators of utility companies and solar equipment suppliers and distributors. The company is licensed to do all work without subcontractors, with licenses including C-46 Solar, C-39 Roofing, C-10 Electrical and General B.

Broad Array of Solutions

The four main verticals of SIRC include solar installation services, battery storage solutions, EV charging and roofing services.

1. Solar installation

SIRC’S solar installation services offer highly sophisticated and efficient system designs tailored to each client’s specific needs. It has a production guarantee and a 25-year warranty on all solar projects. The company’s intuitive SunPower Design Studio lets customers build systems online from the safety of their homes, so they can see what solar looks like on their roofs.

The SunPower® A-Series 400-watt residential solar panels generate plenty of power with fewer panels and the company has an average selling price of $25,000 per residential solar installation with an expected 45% gross margin profile.

2. Battery storage

SIRC’s SunVault™ Storage integrates with SunPower Equinox® solar systems, creating the only home solar and storage solution designed and warranted by one company.

Its teams are Tesla Powerwall Certified Installers, enabling new opportunities not available to most installers. It has an average selling price of $13,500 per installation at an expected 35% gross margin profile.

3. Electric vehicle charging

A relatively new segment, SIRC is focussing on sales, marketing, installation and service of personal EV chargers at residential properties and public EV charging infrastructure for network operators. The company intends to make opportunistic acquisitions of EV charging solutions providers to increase market share over time.

The EV charging installations run from $1,200 for a small residential system to $100,000 for a larger commercial system, at an expected 45% gross margin profile.

4. Roofing services

SIRC specializes in flat roofs and offers roof maintenance, repair and replacement for apartment buildings, office and industrial projects and landmark properties. The company has a 40-year business with the opportunity to access over 30,000 existing customers for solar installation.

The average selling price for a new roof is $16,000, with an expected 40% gross margin profile.

Latest Developments

• On June 9, 2021, the company announced closing its acquisition of Future Home Power, a solar, roofing and battery storage sales company. With this acquisition, the company expects to rapidly grow to $1 million per week in incremental sales at a robust 45% gross margin profile, capturing value across the full customer lifecycle.

• On May 20, 2021, SIRC announced that it expects to grow at least $100 million in revenue in the 12 months ended May 31, 2022, due to its acquisitions.

• The company has a goal of acquiring companies at a multiple as low as 1.5x EBITDA given that many small business owners have no retirement assets outside of equity in their company, which is difficult to monetize. For instance, SIRC purchased McKay Roofing for $1 million but generates $5-$6 million annually.

• The company also plans to increase its footprint to cover northern California, Arizona, New Mexico and other states by acquiring regional installation companies and establishing subsidiaries.

• On April 27, 2021, SIRC announced that it has completed the integration necessary to begin testing the acceptance of cryptocurrency payments from customers. The company has partnered with Coinbase Commerce (NASDAQ: COIN) to carry out the payments.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

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