Solar M&A activity hit record territory in 2021, and one New England installer just became the latest acquisition target in a sector-wide buying spree.
Corporate funding for solar companies reached $13.5 billion in the first half of 2021, a 193% jump from the same period a year earlier, according to Mercom Capital Group. Project acquisitions totaled 39.3 gigawatts, more than double the 14.7 GW recorded in early 2020.
SinglePoint Inc. (OTCQB: SING) announced an agreement to purchase 80.1% of Boston Solar, a leading full-service EPC installer serving the New England market. The deal hinges on completion of an ongoing audit and subsequent financing, with closing expected before year-end or during the first quarter of 2022.
Boston Solar has built a premium residential and commercial installation business over the past decade, projecting revenue above $25 million for 2022. CEO and co-founder Daniel Mello Guimaraes will join SinglePoint after the transaction closes, spearheading its EPC acquisition strategy while continuing to run Boston Solar’s daily operations.
“SinglePoint has clearly defined criteria for installer or developer based solar acquisitions focusing on installers with a strong local brand and presence,” said CEO Wil Ralston. He pointed to market penetration of roughly 4% for residential, small commercial, and light industrial solar as evidence of the runway ahead.
Meanwhile, ADT Inc. moved into rooftop solar with a deal valuing Sunpro Solar at approximately $825 million. The transaction combines $160 million in cash with about 77.8 million shares of ADT common stock. Sunpro, ranked second among U.S. residential rooftop contractors for 2021, will rebrand as ADT Solar.
iSun Inc. also joined the consolidation wave, reaching a definitive agreement for a strategic minority equity investment in Encore Renewable Energy, a top-20 U.S. commercial solar developer. Encore CEO Chad Farrell said the capital infusion would allow his company to more than double its project pipeline within 12 months.
NextEra Energy sold a 50% non-controlling stake in a 2,520-MW contracted renewables portfolio to Ontario Teachers’ Pension Plan Board, one of the world’s largest infrastructure investors. NextEra plans to redeploy sale proceeds into its 18,000-MW renewables and storage backlog.
As a result, consolidation across solar and renewable energy continues to accelerate as companies position for long-term clean energy demand.
