SinglePoint Reports That Its Growth-By-Acquisition Strategy Is Helping More Homeowners Switch To Solar

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While the COVID-19 pandemic caused a slight dip in new renewable power installations around the world, the market is expected to rebound and push higher in the coming years as analysts expect increasing government support and more climate-conscious consumers to look to decrease fossil fuel dependence. 

With an estimated compounded annual growth rate of 20.5%, the solar energy market alone is expected to exceed $223 billion annually as soon as 2026. Companies like SinglePoint Inc. SING are looking to be key players in building that momentum through innovative solutions that make adopting renewable technology simpler and more accessible for customers across the country and world.

The Residential Solar Energy Market Could Be On The Cusp of Major Growth

While popularity is growing, widespread adoption hasn’t kicked in just yet, meaning there is room for growth with only 4% of the US residential market having solar panels. Some of the big players in the solar space include First Solar FSLR, Clearway Energy CWEN and SunPower SPWR.

Last year, for example, Shell PLC SHEL built a 25-megawatt solar plant in Oman. Later that year another oil and gas giant, BP plc BP sold a third of its majority stake in a gas extraction facility that generates upwards of $650 million in profits per year. The Company says it is using the proceeds of that sale to invest in renewable energy ventures.

Governments around the world are implementing programs and incentives to encourage citizens to switch to renewables. President Joe Biden, for example, plans to attempt to increase solar-generated electricity from 3% to 40% of the nation’s total energy consumption by 2035. 

To accomplish that, the administration says it will expand tax credits and invest heavily in infrastructure upgrades to better equip the nation’s grid to handle renewable energy, meaning potential customers living in regions where the grid is not yet capable of working with solar power may soon have that option.

In addition to growing government support for renewable energy systems, the costs of solar power have decreased considerably. It’s still a big-ticket investment for homeowners, but the average cost of installing solar panels on a home has decreased by over 60% over the last 10 years, dropping from about $50,000 in 2010 to less than $20,000 today. That price drop makes it a much more practical option for more homeowners and dramatically increases the potential customer list.

Obstacles To Widespread Adoption Still Remain

Despite declining costs and increasing momentum to move toward renewable energy, transitioning to solar power can still be a confusing and complicated process for homeowners. For one, Biden’s plan to upgrade the entire grid will take time, because it’s a network of tens of thousands of generators owned by over 3,000 energy providers nationwide, making efforts to retrofit the entire system complicated.

Like the energy grid, the solar industry is also made up of a complex network of local and small manufacturers, installers and local-level government agencies. Customers are often on their own as they navigate this market to choose the best solar installer, find the right financing and deal with all the red tape of obtaining the right permits, scheduling the right inspections and getting their solar system connected to the grid.

SinglePoint Aims To Make Going Solar Easy For Homeowners

SinglePoint says it is working to remove as many roadblocks as possible so customers can transition to solar smoothly and easily. To do that, it reports leveraging an ambitious growth-through-acquisition strategy to build the largest network of installers and providers to position itself as the hub for renewable energy solutions. 

“SinglePoint is dedicated to empowering communities to have better environments both inside and outside through leveraging a portfolio of industry-leading renewable energy solutions,” SinglePoint CEO Wil Ralston stated in a letter to shareholders.

Through its subsidiary Direct Solar America, for example, the company works with customers to develop a customized solar power system with the goal of meeting their specific needs. It then coordinates with manufacturers and contractors in its network to build and install that system while also helping homeowners find the right financing options. This hopefully lowers the hurdles that discourage potential customers by taking much of the legwork out of the process for customers.

With Single Solar, another subsidiary, the company targets the online shopping-savvy consumer by streamlining the whole process from quote to installation and allows customers to complete the purchase entirely online.

Late last year, SinglePoint announced an acquisition that would add Boston Solar, a leading solar installer in Massachusetts which reported revenues of $15 Million in 2020, to its portfolio. While this acquisition is still pending, the Company is working toward an expeditious close. 

“This is the first of many acquisitions to come in the space, with the near-term goal of providing a best-in-class national solution for customers looking for renewable energy and storage solutions,” Ralston said in a statement about the acquisition.

While it builds its existing solar portfolio, the company is also exploring other renewables and energy solutions, including wind power, electric vehicle charging and innovative solar storage technologies. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.