Unlike the residential segment, which consolidated several years ago into three companies cornering more than one third of the aggregate market, the same has yet to happen on the commercial level.
One acquisition, announced yesterday, could be the first sign that such a consolidation is about to begin.
California’s Clean Focus Yield, a group of renewable companies with global reach, purchased New England-based Greenskies Renewable Energy for a yet undisclosed figure. With the acquisition, Clean Focus says it has become the owner of one of the largest commercial portfolios in the United States.
For its part, Greenskies receives a much-needed influx of cash while still operating under its own brand and management from its Connecticut headquarters. It maintains that it has a 350 MW project pipeline, including nationally known big-box retailers, governmental entities and utilities.
The management of the company says it plans to expand into schools, hospitals and community solar thanks to the influx of money from Clean Focus.
“We have seen explosive growth over the last five years, and this infusion of capital adds jet fuel to our business engine,” said Will Herchel, president of Greenskies. “With the support of Clean Focus, Greenskies will accelerate its growth, and it is better prepared to weather potential headwinds in the solar market.”
As late as June 2016, Greenskies ranked No. 1 in the commercial and industrial* segment of the industry with 5.5% marketshare, according to a GTM Research survey. But because of fierce competition, the analytics firm now ranks Greenskies 23rd for the first three quarters of 2017.
*GTM Research describes this market segment as “non-residential”, and includes non-profit, government and community solar installations as well as C&I.