Top Ten California Solar Installers 2001-2006 (Where Are They Now?)

California has had two solar incentive programs since 1998. The first was the Emerging Renewables Program (ERP) 1998-2006, which was managed by the California Energy Commission. And the second is the California Solar Initiative (CSI) 2007-present, directed by the CPUC and managed by the Investor Owned Utilities (IOUs). Because of these long term programs California provides some of the most useful solar installation data in the world. There are many interesting, and possibly important lessons to be learned within this data.

For instance, has there been a major turnover in the top installers over the last ten years in California? Have any of the main players from the ERP gone out of business? Are one or two dominant firms putting the mid-sized firms (with the longest track records) out of business? And, if you wanted to mimmick a solid business strategy in this topsy-turvy industry, which firms respresent stability?

Answers

Based on just the top ten there were no obvious cases of installers going out of business since the CSI started. The closest instance of this would be Unlimited Energy based in Fresno, CA. While Unlimited continued robust solar installs through the CSI and their website indicates expansion to Austin TX, there is apparently a bankruptcy taking place in order to conclude a messy business arrangement. CEO Tommie Nellon is a well known solar leader who bullt a strong company in a hard-to-serve region and he shouldn't find any trouble working as a consultant if he decided to take a break from being CEO. One wonders, however, what becomes of all those system warranties?

Mini Profiles

In the spirit of a ten year reunion for the top California solar installers here's a brief "Where are they now?" update:

REC Solar, Inc. was #1 through 2006 and is still #2 based on number of systems installed.REC has expanded well beyond California and is offering solar leasing.

SolarCity had installed only 111 systems under the ERP, and was 50th in terms of number of installs before 2007. Now they famously dominate the industry for number of installations and are rapidly expanding across the country through acquisitions (groSolar) and their 3rd party ownership financing programs.

Akeena Solar began installing in the South Bay in 2003 and has since transitioned from primarily being an installer, to designing equipment (Andalay), to being primarily an equipment distributor under the Westinghouse Solar brand. (see Real Goods announcement about taking over Akeena install pipeline.)

REgrid Power is one of the strongest Bay area solar installers and whose founders prove that industry advocacy and leadership is good business. Tom and Darlene McCalmont are very involved in key industry advocacy organizations like SolarTech and SEIA, among many others. REgrid was one of the five pearls that merged together under the Real Goods umbrella in 2008.

Borrego Solar Systems was also started in the Bay area and flourished in the residential sector for its first few years. In early 2009 Borrego's residential pipeline was taken over by groSolar, and Borrego focused on its commecial installation business. This appears to have played out well given the recent announcements about Borrego projects.

SPG Solar, formerly SunPower & Geothermal, is a privately held company founded in 2001 and has deep roots in the California solar industry. The company currently thrives in the commercial sector, and it has focused on recruiting leadership with extensive experience in the utility industry. The company was founded by Dan Thompson, who, like his counterparts on the Top Ten list, is an active advocate and leader in the solar industry.

Sun Light & Power, based in Berkeley CA and founded in 1976 by Gary Gerber, is one of my favorite solar companies - especially as a marketing case study. Like REgrid Power, SPG, and Real Goods, Sun Light & Power has consistently invested their time and resources in solar advocacy and education. SLP is especially adept at developing earned media and suppporting strategic educational initiatives by groups like NorCal Solar and Build it Green.

Rounding out the ERP Top Ten and still California install leaders: Carlson Solar Inc. (as Real Goods), and Advanced Solar Electric.

Summary

The solar integrators with the most involvement in advancing their own markets by volunteering in non-profits and participating in regulatory and policy proceedings have managed to grow their businesses, even as the largest companies have grown exponentially in the same markets. With all this growth California still has fewer than 100,000 grid tied PV systems out of more than 10 million rooftops.

There may have been vendors who left the business after installing significant numbers of systems under the ERP program, and if you know of them please include your source information in comments below. My analysis didn't find any major drop outs between the ERP and CSI.

Data Lovers Unite!

I know there are many more insights to uncover in the ERP and CSI install data. Go for it!

You can find the CEC ERP data in two excel files at this website: http://energyalmanac.ca.gov/renewables/solar/1998-2006.html

And the CSI data is searchable and downloadable at http://www.californiasolarstatistics.ca.gov

Finally, the CPUC draws together some very interesting information in their January program update, including the installers with the most expensive and least expensive cost per watt. You can download their presentations here: http://www.cpuc.ca.gov/NR/rdonlyres/B13113DA-CD74-47EA-8D2A-418F21024381/0/CSIProgramForum_012611.pptx

If you love solar install data and would like to contribute your favorite sources to a public database please email your source link to me for posting at SolarInstallData.com.

PS: While the incentive programs represent a great majority of solar business in the state, there is clearly major solar revenue outside of the incentive program data. The ERP and CSI don't reflect solar thermal systems, off grid systems, or solar installed in any of the 37 municipal utilities outside the investor owned utility territories.

PPS: My preferred measure of market activity is number of systems since in my view the most robust future of solar involves millions of solar systems supported by thousands of local installers. The Top Ten installers in terms of megawatts installed is very different than the number of systems installed.

Liz Merry owns Verve Solar Consulting, through which she teaches seminars (“Energy Careers and Business Opportunities,” for the Pacific Energy Center, and "Solar Business and Technical Sales Training” for Solar Energy International), writes solar business curriculum, and provides business and solar career consulting. Liz's latest resources and opinions can be found at  SolarToday.org/Liz and at VerveSol on Twitter.