From Fortune · Jordan Blum · · 2m
Nextpower powers America's solar boom
The solar tracker company controls 55% of the U.S. market and is buying its way into batteries and hardware to become the backbone of renewable energy.
In brief
The solar tracker company controls 55% of the U.S. market and is buying its way into batteries and hardware to become the backbone of renewable energy. Nextpower, which controls 55% of the U.S. solar tracker market, is expanding into batteries and hardware through acquisitions to become the complete solar platform…
Solar trackers follow the sun
Nextpower specializes in solar trackers, arrays that slowly rotate to keep panels oriented toward the sun throughout the day, producing almost 30% more energy.
“The trackers do what sunflowers have been doing for millions of years. They basically follow the sun during the day, and they can produce almost 30% more energy.”
Nextpower dominates the market
Nextpower controls 55% of the U.S. solar tracker market and about 30% globally. The company is 13 years old and changed its name last year from Nextracker.
Expanding beyond trackers
Nextpower moved from pure-play trackers to a platform strategy covering everything in solar except the cells, and everything in batteries except the battery cells.
“We moved from a pure-play tracker company, and we developed a platform strategy to do everything in solar except make the solar cells.”
Stock soars, analyst picks it
Nextpower's stock is up 12% this year to a market cap of 15 billion dollars. Jefferies ranked it the franchise pick in power and utilities for highest quality.
Solar is fastest-growing power
Solar power is the fastest-growing source of power in the U.S. and the dominant form of new power being installed. Texas and California each have over 15 gigawatts.
“It's the dominant form of new power being installed.”
Buying spree into batteries
In July, Nextpower acquired Prevalon Energy battery storage for up to 365 million dollars and Spain-based Zigor for 80.5 million. In October it bought Germany's Zimmermann for 378 million.
Backlog triples since going public
Nextpower's project backlog has tripled since going public four years ago, rising from 2 billion dollars to over 6 billion dollars as solar projects accelerate.
“We've had our project backlog triple since we went public four years ago. Our backlog was $2 billion. Today, it's over $6 billion.”
Tax credits expire in 2030
The Trump administration eliminated tax credits for solar and wind projects last year. Most solar projects in the works have until 2030 to be completed with tax breaks intact.
Solar needs 49% more contracts
Energy research firm Enverus said new solar contracts would need to rise about 49% to offset the loss of tax credits. Congress is considering infrastructure permitting reform legislation.
In short
Nextpower, which controls 55% of the U.S. solar tracker market, is expanding into batteries and hardware through acquisitions to become the complete solar platform except for the cells themselves.
