Solar M&A: Alteris Renewables Gobbles Up Renewable Power Systems

Consolidation seems an inevitable trend as solar installers seek a faster way to expand their market reach.

Alteris Renewables, which came into being when two installers merged last year, has bought most of Renewable Power Systems' assets in upstate New York to pump up its sales in the northeastern United States, Alteris said Tuesday. The company didn't disclose the terms of the sale.

Renewable Power started doing business in 2002, according to its website, and had served more than 170 customers before its sale to Alteris.

The acquisition gives Wilton, Conn.-based Alteris a greater presence in New York. In fact, when Alteris was formed through the merger of Solar Works and SolarWrights, SolarWorks' president Ron French said one of the goals for the merged company was to improve its business in local markets such as New York (see Solar Mergers: Guarding Against a Slumping Economy)

Alteris claims to have installed more solar energy systems than others in the Northeast. It has erected more than 2,250 systems, the company said.

Alteris has offices in six states: Massachusetts, Vermont, New Hampshire, Connecticut, New York and Rhode Island. It installs not only solar panels, but also solar thermal appliances and wind energy systems for residential and commercial customers.

The solar installation business, particularly in the residential market, is largely dominated by local and regional players. Companies tend to set up offices in states with good rebates or other solar incentives.

California leads the nation in solar power generation capacities, and several hundred companies are listed on a state website as being licensed to erect solar energy systems for both residential and commercial customers.

With the U.S. market poised to grow significantly in the next several years, some installers have used acquisitions to gain scale.

River Junction, Vt.-based groSolar, for example, bought the residential installation business of El Cajon, Calif.-based Borrego Solar Systems earlier this year (see Green Light post).

GroSolar is both a distributor and installer, and its installation business has offices in Vermont, Massachusetts, New York, Maryland and California. Borrego serves California and Massachusetts.

Last fall, Real Goods Solar in Boulder, Colo., merged with Regrid Power in Campbell, Calif. and now operates as Regrid.