This morning Eguana Technologies (TSXV: EGT) announced their first material purchase order from a California installer. The installer known as Highlight Solar covers the San Jose and San Francisco Bay Area. Already an Eguana-certified partner, they are scheduled to complete their first group of Evolve energy storage systems in August with installations continuing throughout 2020. With a 5 star rating on over 163 reviews on Yelp, we can see why Eguana chose Highlight Solar to work with.
In the company press release, Dean Alayleh, principal of Highlight Solar tells us they chose Eguana because the two companies are aligned in their values, “Highlight Solar has an impeccable record for workmanship and customer service and support. We feel that Eguana offers that same level of performance and customer support and we are excited about the partnership.”
1 MW Order, We Estimate Around $2M USD in Revenue
In the press release, Eguana tells us that Highlight Solar “expects to bring over 1 MWh of energy storage systems to homeowners through the San Jose and San Francisco Bay area over the next 12 months.” Based on our math, if we assumed 1 MW of throughput, on 5 kWh hour systems, that would be equate to around 200 systems. The batteries are modular, so it’s impossible to say what that could mean revenue wise, but if we assume $10k USD per system, the annual order would be around $2M USD.
Sponsored · Antimony Resources
Which begs the question….
How Many Similar Installers Are In Cali?
According to SEIA.org there are 1,110 solar installers in California. Installers come in different shapes and sizes. Some will be able to install hundreds of systems a year like Highlight Solar, others will do a handful a year, and others may even avoid storage altogether. Regardless, a 200 system order at around $10k USD per system indicates that each independent installer can mean around $2M USD of annualized sales for a system manufacturer like Eguana. With 1,100 installers to sell systems to, we can see how quickly this business can scale as the company onboards more installers.
Lots of Homes to Retrofit in Cali
The company tells us in the press release there are around 800,000 homes with solar panels in the state. Again, if we assume $10k USD per battery sold, that makes the State’s retrofit market an $8B total market opportunity for system manufactures like Eguana.
Rolling Blackouts All Over the State
Over the weekend, hundreds of thousands of California’s saw blackouts due to the heat. Triple-digit temperatures drove up power demands, leading grid operators to declare a statewide Stage 3 emergency for the first time in nearly two decades.
One of the key highlights of Eguana vs. competitors: they manufacture the only system that provides backup power with auto recovery, allowing for a seamless transition during a grid failure.
Eguana stock last traded at 14c up 12% at the time of publishing.
FULL DISCLOSURE: Eguana Technologies is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Eguana Technologies on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
