SolarMax Technology, Inc. operates as an integrated solar energy company.
The company, through its subsidiaries, primarily engages in various business activities, such as identifying and procuring solar farm system projects for resale to third party developers and related services in the People’s Republic of China (China); providing engineering, procuring and construction services, which are referred to in the industry as EPC (engineering, procurement and construction) services, for solar farms...
SolarMax Technology, Inc. operates as an integrated solar energy company.
The company, through its subsidiaries, primarily engages in various business activities, such as identifying and procuring solar farm system projects for resale to third party developers and related services in the People’s Republic of China (China); providing engineering, procuring and construction services, which are referred to in the industry as EPC (engineering, procurement and construction) services, for solar farms and rooftop solar systems in China; operating and maintaining solar farm projects in China following the completion of its EPC work on the projects; selling and installing integrated photovoltaic systems for residential and commercial customers in the United States; providing exterior and interior light-emitting diodes (LED) lighting sales and retrofitting services for governmental and commercial applications; providing secured loans to purchasers of its photovoltaic systems and servicing installment sales by its customers in the United States; owning and funding renewable energy projects in the United States based on leases entered into prior to 2015, and generating revenue from this business through operating leases and power purchase agreements primarily with commercial users; and, selling and installing battery backup solutions for residential and commercial customers in the United States.
Segments
The company operates through two segments, United States Operations and China Operations.
United States Operations
This segment includes the sale and installation of photovoltaic and battery backup systems, financing the sale of the company’s photovoltaic and battery backup systems, owning and leasing to third parties through operating leases and power purchase agreements, and sales of LED systems.
China Operations
This segment consists of identifying and procuring solar farm projects for resale to third parties; EPC services for solar farm projects; maintenance and operation of solar farm projects once the projects are completed; and sales and installation of residential and commercial photovoltaic systems.
The company’s business in China is conducted through its subsidiaries, primarily Chengdu Zhonghong Tianhao Technology Limited Company (ZHTH) and Jiangsu Zhonghong Photovoltaic Engineering Technology Limited Company (ZHPV), which it acquired in April 2015, and their subsidiaries, and Jiangsu Honghao Electricity Technology Co. Ltd. (Jiangsu Honghao), which it formed in September 2015.
ZHTH engages in project development. ZHPV’s major business is to provide EPC services. ZHTH and ZHPV establish special subsidiaries to own and acquire a permit for a solar farm. The company refers to these subsidiaries as project subsidiaries. When a buyer of a project is identified, the company sells to the buyer the equity in the project subsidiary that holds the permit for that specific solar farm project, and the buyer of the project engages ZHPV for the EPC work. Jiangsu Honghao provides operations and maintenance services for each project for which it receives a contract, either directly or through a subsidiary.
Regulation
As a company with less than $1.07 billion in revenue during its last fiscal year, the company qualifies as an ‘emerging growth company’ as defined in the Jumpstart Our Business Startups Act of 2012.
History
SolarMax Technology, Inc. was founded in 2008.