Standard Solar to be acquired by Gaz Métro, will seek to expand with low-cost capital

Written By: Stratton Report
March 7, 2017

On March 7, Standard Solar, Inc., a commercial solar developer announced that it is being acquired by Gaz Métro. Per the firm, the transaction is expected to close in the coming weeks. The company will continue to operate as Standard Solar, maintain its Rockville, Md., headquarters and be managed by its current executive team.

Standard Solar stressed that it is being acquired by a diversified energy company that is active in electric distribution and production including solar and wind power, and natural gas distribution, LNG and renewable natural gas, owns $2.9 billion in assets in the U.S, and serves more than 315,000 clients through its various businesses and affiliates in the U.S. Northeast.

Standard Solar emphasized it is active in California, Connecticut, Delaware, Georgia, Maryland, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Texas, South Carolina, Virginia and Washington D.C.

Martin Imbleau, Senior Vice President Operations, Transport and Development of New Energies at Gaz Métro remarked:

We see in Standard Solar many of the same attributes we value as a company, including their commitment to anticipate and address the needs of current and future customers as well as the regions, municipalities and communities where it is established. This is an exciting acquisition for Gaz Métro as it allows us to further diversify our energy solutions offerings, to reinforce our commitment to an energy transition and to strengthen our presence in the U.S.

Scott Wiater, president and CEO, Standard Solar observed: “This acquisition significantly magnifies Standard Solar’s potential to expand its market penetration by enhancing our ability to provide in-house financing for solar and energy-storage projects of all sizes,” said. “The deal also gives us unparalleled flexibility in the types of projects we can support. This acquisition positions us to become an independent power producer (IPP), applying our deep expertise at every stage of a solar project. We can accelerate and streamline every project including financing a fully developed project, offering developers our full suite of engineering, procurement and construction (EPC) functions, or providing services in between. With a track record of more than 1,500 solar installations dating back to 2004, we know what is required to get a project built.”

Citing GTM Research’s report, Standard Solar noted that  by 2020, the U.S. non-residential segment will reach 3 GW and a value of $3.8 billion, and that the commercial sector outpaced the residential sector for the first time since 2011.

Tony Clifford, Standard Solar’s chief development officer remarked: “The GTM Research report also identifies common criteria for success as a national commercial solar developer, including the ability to provide a source of low-cost capital and the ability to offer ancillary products and services such as energy storage. With low-cost capital now available in-house, we can meet those criteria to develop and finance a wide variety of DG projects including energy storage, considerably alleviating many of the financing challenges that have dogged the commercial solar market.”

Macquarie Capital served as financial advisor to Standard Solar.