Bankrupt solar installer Lumio acquired by Zeo Energy Corp.

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Florida-based residential solar and energy efficiency installer Zeo Energy has acquired Lumio Holdings, Inc.

On September 3, 2024, residential solar installer Lumio filed for Chapter 11 bankruptcy. The sale of Lumio to Zeo Energy closed on November 1, 2024.

Ellenoff Grossman & Schole LLP served as legal advisor, and Gateway Group served as strategic communications advisor to Zeo Energy.

“While the last year has been challenging for residential solar companies, we believe that we have positioned the Company as a platform to opportunistically purchase assets which will help us grow at above-industry rates in 2025 and beyond,” said Timothy Bridgewater, chief executive officer, Zeo Energy.

Several major residential solar installers went bankrupt in 2024, including SunPower, one of the nation’s longest-running solar businesses. A combination of high interest rates and regulatory turmoil has challenged many installers, causing some to close shop for good.

Despite this, the fundamentals of residential solar remain strong. Solar marketplace operator EnergySage said the average system quoted on its platform is expected to break-even at 7.5 years, while solar panels can perform for 25 years or more.

(Watch: The solar and storage “home energy evolution”)

The report noted that through the first half of 2024, residential solar prices on its platform averaged $2.69 per watt, declining 4% from the second half of 2023. This is only 1% higher than the all-time low of $2.67 per watt in the first half of 2021, when U.S. residential solar experienced one of its largest growth cycles in history.

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