RGS Energy today announced that its Board of Directors determined to exit its main residential solar installation business to focus on the Powerhouse shingle market. RGS Energy became the exclusive manufacturer and distributor of the Powerhouse solar shingles in late 2017.
“By exiting the unprofitable mainland residential solar business, the company will reduce its overall cash outflow with the goal of maximizing future shareholder value,” the company said in a press release.
RGS Energy is banking on increased solar roofing business from California’s mandate that all new homes built in 2020 include a solar installation. The company is focusing its efforts and resources on what it believes is a substantial opportunity with its Powerhouse solar shingle.
For the twelve months ended December 31, 2018, the preliminary net loss for the mainland RGS Energy residential business was approximately $5.5 million.
“We announced earlier this month that we were exploring strategic alternatives focusing on maximizing shareholder value, and at this time have determined that we will exit our mainland residential solar EPC business, a large component of our annual cash outflow,” said RGS Energy CEO Dennis Lacey. “We will retain two facets of our legacy solar EPC business that do not require material use of our cash, including our small commercial business where our pipeline has grown considerably as well as our Hawaii-based subsidiary Sunetric that has been growing sales.”
The company does not believe the costs to implement the operational realignment will be material to its operations or financial condition.
News item from RGS Energy