Premier Power Renewable Energy, Inc., through its wholly owned subsidiaries, engages in developing, designing, and integrating ground mount and rooftop solar energy solutions for commercial, industrial, residential, and equity fund customers.
Products and Services
The company provides a range of installation services to its solar energy customers, including design, engineering, procurement, permitting, construction, grid connection, warranty, system monitoring, and maintenance services. It has...
Premier Power Renewable Energy, Inc., through its wholly owned subsidiaries, engages in developing, designing, and integrating ground mount and rooftop solar energy solutions for commercial, industrial, residential, and equity fund customers.
Products and Services
The company provides a range of installation services to its solar energy customers, including design, engineering, procurement, permitting, construction, grid connection, warranty, system monitoring, and maintenance services. It has installed approximately 1,400 solar power systems. In addition, the company is a reseller of solar energy system components, including racking, wiring, inverters, solar modules, and other related components sourced from the major manufacturers and suppliers. It assists in arranging power purchase agreement programs for its customers.
The company’s business operations are conducted in, and a portion of its sales are made in, Spain and other European countries through its wholly owned subsidiary, Premier Power Sociedad Limitada. In addition, its business operations in Italy are conducted through its wholly owned subsidiary, Premier Power Italy S.p.A.
Segments
The company operates in three business segments: North America (N.A.), Italy, and Other European.
N.A.
This segment includes N.A. commercial, N.A. residential, and N.A. distribution businesses.
N.A. Commercial: The company’s N.A. commercial business consists of ground mount or rooftop solar energy projects generally ranging from 100 kilowatt (kWh) to 5 MW provided to corporate, municipal, agricultural, and utility customers. In this market, the company designs and builds its solar energy systems to meet each customer’s individual needs and circumstances. It assesses the customer’s annual power requirements and average daily consumption rates in different seasons of the year to size, and engineers the solar energy system. The company assesses the customer’s site and if relevant roof size, configuration, and composition to determine the optimum location for the solar modules.
The company also identifies the relevant federal, state, and local regulations, including building codes that are primary to the cost, operation, and return on investment of the customer’s solar energy system, as well as relevant tax rates and various other factors. It assesses this data using solar monitoring tools that enable the company to design a solar energy system to a size and configuration. It provides customers with a return on investment analysis, and determines the rebates and performance-based incentives that are available to each customer. The company prepares final construction plans to obtain a building permit, and as soon as the permit is approved, its installation professionals begin the installation by placing metal racking on the customer’s roof (or by building a ground mount), followed by installation of the solar modules, inverters, and the balance of systems components and safety equipment.
N.A. Residential: The company’s N.A. residential business consists primarily of rooftop solar installations generally ranging from 5 kWh to 40 kWh provided to customers primarily in California. It provides installations in other states. The services it provides to its residential customers are similar to its N.A. commercial customers. Primary differences include that the entire process takes approximately 60 to 90 days for residential customers versus 3 to 6 months for commercial customers, and the actual installation work usually requires 2 to 5 days for residential customers versus 2 weeks to 2 months for commercial customers.
N.A. Distribution: The company also distributes solar modules and inverters in the U.S.
Italy
This segment consists of the distribution, ground mount, roof mount, and solar power plant installations. In Italy, a portion of the company’s business consists of ground mount or rooftop solar energy projects generally ranging from 50 kWh to 1 mWh provided to corporate, municipal, agricultural, and utility customers. In Italy, its customers commission the company to install solar energy systems based on customer-defined specifications, and it has the ability to define its own projects and select sites based on solar characteristics. These projects are 1 MW in size. The company enters into these projects with a reseller of solar power plants or a financial investor who contracts the company to construct the project. This segment also consists of distribution of solar modules and inverters.
Other European
This segment consists of rooftop and ground mount solar installations generally ranging 5 kWh to 16 MW provided primarily to businesses or equity funds that own commercial buildings or warehouses or green fields. This segment primarily serves European countries other than Italy. The services the company provides to its customers are similar to its N.A. commercial customers. In addition, this segment consists of large scale international distribution and business development, as well as engineering, procurement, and construction (EPC). The service it provides to its customers also consists of large scale procurement, EPC, and consulting.
In addition, the company has expanded its sales and distribution reach into other European countries, such as the Czech Republic, Bulgaria, and Romania, through direct sales efforts and its collaboration agreement with Plaan Czech, s.r.o.
Customers
The company’s business consists of the installation of solar energy systems and all related components for use by commercial and industrial enterprises, municipalities, residential homeowners, and other solar energy providers. Its customers in the United States include commercial companies, such as Cal Cartage and Dependable Highway; utility companies, such as Pacific Gas and Electric, and Sierra Pacific Power Company; home builders, such as KB Homes; and various agricultural clients, such as major wineries in Napa Valley, California. Its customers in Italy include Global Green Energy, Nicastri, and Camardo. Its customers in its Other European segment include Plaan Czech, s.r.o.; TSK; and Solar Jorosev.
Suppliers
The company purchases the components from major solar energy product suppliers, including solar modules from Jinko, Sharp, SunTech, and SunPower Corporation; inverters from Power One, Fronius, Satcon, SMS, and Zantrex; and solar trackers from PV Tracker.
Strategy
The company intends to pursue various business strategies, including targeting multiple markets; developing proprietary know how; balancing in-house engineering with outsourced labor; expanding its participation in ‘value added’ businesses; expanding through both acquisitions and organic growth; developing financial tools, such as power purchase agreements to help businesses decide in favor of solar power; and establishing best practices across market segments.
Intellectual Properties
The company has trademark protection for the brand name ‘Premier Power’ and ‘Bright Futures’, for which it received approval from the U.S. Patent and Trademark Office. It also received approval for trademark protection of its sales slogan, ‘Your Solar Electricity Specialist’.
Competition
N.A.: The company’s competitors include RealGoods, Solar Universe, Solar City, and SPG.
Italy: The company’s competitors include Enerqos and SAEM Energy Alternative.
Other European: The company’s competitors include Phoenix Solar and Proinso.
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
