Solar Alliance completes first Los Angeles solar installation
Vancouver, Canada-based solar company Solar Energy Alliance, Inc. announced this week that it installed
its first solar system as part of the recently completed acquisition of a Los Angeles solar sales team and project pipeline.
“The acquisition of the Los Angeles-based sales team is a transformative transaction for our company as we have tripled the size of our team in a short period of time,” Chairman and CEO Jason Bak said. “The Los Angeles team is now fully trained on Solar Alliance systems and processes and has begun selling residential systems.”
As part of the acquisition, Solar Alliance obtained 156 residential solar projects of approximately 780 kilowatts, which are all in the installation process. The projects are expected to be installed in the next
60 to 90 days.
The Company estimates it will generate approximately US $2,800,000 in gross revenue and up to US $1,585,000 in accretive gross profit from the projects once installation is completed in addition to the company’s ongoing sales operations in Southern California.
“We are working diligently to move these solar projects through the installation phase in order to generate cash flow as soon as possible,” CFO Eric Knutzen said. “Our model of utilizing installation partners instead of carrying excess costs and overhead will result in faster installation times and high gross margins for these projects. We believe this acquisition will pay for itself in the short term while generating significant sales revenue in the long term.”
The company is now recruiting additional sales staff for its San Diego and Los Angeles operations and considering other acquisition opportunities in several different markets.
The company is aiming to expand rapidly through organic growth and acquiring distressed assets while generating a positive net income in 2017.
