The transaction is contingent on the completion of the ongoing audit and the subsequent financing and is expected to close prior to year-end or within the first quarter of 2022.
In July 2020, SinglePoint announced its intentions to prioritize and reallocate Company assets and focus its business strategy around the emerging and growing market opportunities in residential and solar energy. At that time, the Company introduced a residential and small commercial solar-centric rollup strategy designed to increase market share, revenues and most importantly build a future business focused on revenue growth and profitability. The current advancements in the technology related to solar PV and energy storage create a long-term market opportunity for SinglePoint’s s renewable energy and storage business, as there is only approximately 4% current penetration of the addressable solar market for both residential, small commercial and light industrial.
“Our next phase of non-organic growth is designed to be facilitated through targeted acquisitions that meet our criteria and that match the growing demand for renewable energy and energy storage,” stated Wil Ralston, CEO of SinglePoint Inc. “SinglePoint has clearly defined criteria for installer or developer based solar acquisitions focusing on installers with a strong local brand and presence that are dedicated to a customer-centric approach, led by an experienced and dedicated team of professionals. We began substantive discussions with Boston Solar in the first half of this year and confirmed that its executive team meets our acquisition criteria and represents a key strategic pillar within our solar strategy. The Boston Solar team has delivered proven results, and we are excited to close this transaction and work together to take advantage of the market opportunity that will benefit Boston Solar, SinglePoint and all shareholders.”
Upon completion of the acquisition, the CEO and Co-Founder of Boston Solar, Daniel Mello Guimaraes will join the SinglePoint team and spearhead the EPC acquisition strategy. Mr. Mello Guimaraes will continue to oversee the day-to-day operations of Boston Solar in addition to identifying accretive tuck in acquisitions facilitated by SinglePoint that would benefit Boston Solar. In addition, there are efficiencies and operational synergies within SinglePoint’s current solar assets, when combined with the demonstrated expertise of Mr. Mello Guimaraes and the Boston Solar team, that should be accretive and enhance overall margin as we grow revenue and strategically expand our renewable energy and storage footprint.
“This acquisition is a strategic fit for Boston Solar given the shared customer-centric approach and commitment to enabling and enhancing the growth opportunities at Boston Solar. Over the past few months, the senior leadership teams at Boston Solar and SinglePoint met to ensure alignment in approach, mission and vision,” added Mr. Mello Guimaraes. “Boston Solar has been serving the New England market primarily in Massachusetts since its inception in 2011, and we look forward to continuing to provide exceptional service to our existing and future customers looking to implement solar, renewable energy and energy storage solutions. Boston Solar is well-positioned for growth over the next decade and I look forward to continuing to lead the company as we expand and increase our regional footprint and scale our commercial solar and energy storage offerings.”
Over the past 10 years, Boston Solar has been providing premium residential and commercial solar installations to the communities it serves. The company has been able to achieve scalable, consistent growth, expecting to surpass $25 million in revenue in 2022.
The Solar Energy Industries Association®, the national trade association of the U.S. solar energy industry, is calling the next decade the “Solar+ Decade” – an era in which the industry will become the dominant source of new electricity generation. The 2020s won’t just be the Solar Decade – it will be the Solar+ Decade, where Solar + Storage, Solar + Grid Modernization, Solar + Diversity, Solar + Trade, Solar + Finance, and many other collaborations shape the future of energy in America. Now, according to research company BloombergNEF (BNEF), the “energy storage decade has arrived.”
This projected growth in stationary energy storage will require more than $262 billion of investment, said BNEF in its 2021 Global Energy Storage Outlook. Decreasing battery costs and increasing renewables penetration make energy storage a compelling flexible resource in solar systems. BNEF stated that it expects energy storage located at homes and businesses to make up about one-quarter of global storage installations by 2030. The desire of electricity consumers to use more self-generated solar power and appetite for backup power are major drivers.
Residential, small commercial and light industrial customers can benefit from battery-based energy storage as excess power produced by solar panels flows into battery storage for later use. Batteries allow for optimization by storing excess solar energy. Customers with battery storage can then utilize this power when the sun goes down or in the event of a power outage to power key appliances or key systems.
The energy transition is a major factor in the rise of renewables, but solar’s growth is partly due to how cheap it has become over time. Solar energy costs have fallen exponentially over the last decade, and it’s now the cheapest source of new energy generation.
“Over 100 million people in the United States alone would benefit by going solar. Over the past six months, and throughout the due diligence process with the Boston Solar executive team, it became obvious that we have a shared and aligned passion for the renewable energy industry and a commitment of putting the customer first, which is reflected in their customer reviews. This is the first of many acquisitions to come in the space, with the near-term goal of providing best-in-class national solutions for customers looking for renewable energy and storage solutions,” stated Mr. Ralston.
Mr. Ralston concluded, “SinglePoint is focused and committed to continued execution of our renewable energy vision and strategy. The addition of Boston Solar a premium solar installer perfectly aligns with our acquisitions strategy. We believe this clarity and alignment between the companies will continue to propel us towards our goal of becoming an industry leader and deliver maximum value to our shareholders, customers and partners.”