In a move that signals its entry into the U.S. residential solar market, Vancouver, British Columbia-based Finavera Wind Energy has agreed to acquire 100% of the equity of Solar Alliance of America for $6 million.
Under terms of the agreement, Finavera will acquire Solar Alliance for $4 million in cash and $2 million in stock. Artie Rose, president and CEO at Solar Alliance, will join Finavera's board of directors when the transaction has been completed.
San Diego-based Solar Alliance, which had $20.7 million in revenue last year, is a solar sales and marketing firm focused on residential solar installations.Â
Since its inception in 2009, the company has installed approximately 1,350
residential solar systems in Southern California.
‘The national residential solar market in America has been growing at 60-70 percent annually due to the dramatic fall in solar panel prices, the rise in electricity rates from traditional utilities and the availability of tax incentives,’ explains Jason Bak, Finavera's CEO. ‘Over the past four years, the Solar Alliance team has grown their company aggressively, and we feel that their skill set and cash flow complements our renewable energy development experience. This will allow us to jointly scale Solar Alliance over the forthcoming year in order to take advantage of the unprecedented growth in residential distributed solar generation.’
The transaction is expected to close within 90 days and is subject to due diligence and customary closing conditions, notes Finavera.