- Ecodaptive, an innovator in solar finance creating value for under-utilized assets, will contribute to vertical integration
- $100 Million+ framework agreement in place with project buyer to acquire SunRAYS solar projects installed in Massachusetts
- Daniel Mello Guimaraes joins SinglePoint team to drive tuck-in acquisitions and scale national footprint
SinglePoint, Inc., a renewable energy and sustainable solutions provider, announced that its subsidiary, The Boston Solar Company LLC (''Boston Solar"), acquired Ecodaptive, Inc., a Delaware corporation ("Ecodaptive"). Ecodaptive is a clean energy company providing innovative financial structuring solutions to expand the adoption of clean energy projects will support Boston Solar's growing commercial division. Ecodaptive is currently focused on developing the SunRAYS Energy Program (''SunRAYS") in Massachusetts, which enables traditionally underserved customer segments to go solar through a roof lease structure.
The SunRAYS Program was developed to expand access to rooftop solar generation opportunities. Enabling broader communities to participate will result in greater penetration of rooftop solar and accelerate the transition to a low-carbon energy future. The program directly improves the livelihoods of participants through long-term site-lease payments.
The SunRAYS program focuses on providing electricity from distributed rooftop solar to a broader constituency than traditional distributed generation business models. As a result of expanding renewable energy, air emissions and associated water management issues related to traditional fossil-fuel-derived electricity are mitigated. According to the US Energy Information Administration, in 2020, Massachusetts sourced 76% of its generation from the combustion of natural gas, which emits 871 pounds of carbon dioxide per megawatt-hour1 . Expansion of rooftop solar projects such as the SunRAYS program will help reduce the Commonwealth's reliance on natural gas1
Wil Ralston, CEO SinglePoint, said. "The opportunity with Ecodaptive could prove itself to be a significant competitive advantage as well as a company changing event. There is a framework $100 million asset finance facility enabling Boston Solar and Ecodaptive to scale a successful SunRAYS pilot program. The Ecodaptive Team has years of successful experience in solar finance, and we look forward to leveraging their expertise as we push forward."
Ralston continued, "An exciting aspect of the program is that building owner financial constraints are essentially removed, enabling any qualifying residential or commercial sites to go solar without having to consider any out of pocket expenses and will actually be compensated through an upfront payment at the start of installation as well as through ongoing lease payments."
Currently, solar PV represents approximately 3% of US electricity generation. The US Department of Energy, in its "Solar Futures Study''2 released in September 2021, said it is estimated that the US must install 30GW of solar capacity per year through 2025 and 60GW of solar capacity annually after 2025. Doing so will require significant coordination of investment for transmission and distribution networks. As it stands now, 60% of US electric distribution lines are past their life expectancy, and investments of $1.5 to $2 trillion are required by 2030 for grid modernization just to maintain reliability.3 There are already large delays associated with interconnection for large-scale utility solar projects. With that context, the SunRAYS Program attempts to overcome one of the primary risks of solar integration by locating the solar generation resources closer to the sources of electricity demand so as to not require high voltage interconnections nor long-distance power transmission.
The SunRAYS Program utilizes local residential and commercial rooftops to host solar projects, interconnecting to the distribution grid at lower voltages and overall power levels than would be considered for utility-scale projects. The Massachusetts Department of Public Utilities (MDPU) requires under 220 CMR 18.04 –that distribution companies in Massachusetts must provide services to customers and host customers related to interconnection of distributed generation solar projects. This strong commitment by Massachusetts enables additional solar energy to come online without the traditional risk or expense or delay associated with utility-scale projects.
The SunRAYS Program uses existing under-utilized building stock. There is no additional land required to host projects in the program. Owners of small commercial, multi-family housing units and single-family residential buildings enter into a site-lease agreement through which they receive ongoing rental payments in exchange for hosting one or more solar PV projects that feed their output directly into the electricity grid.
As previously announced, the CEO and Co-Founder of Boston Solar, Daniel Mello Guimaraes, joined the SinglePoint Management Team as the Executive Vice President of EPC Services. Mr. Mello Guimaraes will spearhead the Solar-Centric EPC (Engineering, Procurement, and Construction) acquisition strategy focused on ensuring that future acquisitions are directionally and geographically aligned and substantially meet the defined acquisition criteria.
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 are expected to be accretive and enhance overall profit margins as the company grows revenue and strategically expands their renewable energy and energy storage footprint.