This is your SolarWakeup for November 10th, 2021

A New High-water Mark. In a landmark deal, the home alarm company, ADT, acquires Sunpro Solar the southeastern giant that has grown dramatically over the past few years. I may be biased, I’m a big fan of what Marc Jones and his team at Sunpro have done to build that company. Solar isn’t always the easiest business but ask any of his suppliers and manufacturer partners and you’ll find a consistent nod of approval. ADT knows how to sell a tough in-home product and utilities have been sitting on the sidelines worried about alarm companies getting into the energy business. The public markets also liked the deal, rewarding the stock price with over 12% increase on the day. ADT Solar will be knocking on a home near you, with over 100,000 field reps, how will that translate to a change in the solar landscape and what’s next in the market?

How Will The Market React? You’ve got a new benchmark for valuation in the space. Last month, SunPower acquired Blue Raven and now ADT buys Sunpro for a huge number. When you no longer need to sell on the future of a market, folks see over the horizon into the future and know they should be in this space. AAA launched a smart home, home alarm company, a few years ago, will they match ADT in this move? We already saw Vivint do it, but they separated those companies instead of leveraging the smart home environment. Look for new investments in this space now that exit opportunities can be reached, that should make it fun for everyone.

Looking At Generac Again. Last week, Generac acquired Ecobee, which makes not only a thermostat but also smart home products and alarm hardware. They don’t have the in-house sales force like ADT but there’s an overlap that’s becoming more obvious when you look at it on a more holistic level. What it means for consumers is a whole other question…

Opinion

Best, Yann