Solar3D's Pending Acquisition, SUNworks, to Benefit From New California Legislation
Company Expects Rapid Growth Partly as a Result of California Senate Bill 594 Allowing Net Meter Aggregation
SANTA BARBARA, CA--(Marketwired - Dec 17, 2013) - Solar3D, Inc. (OTCQB: SLTD), the developer of a breakthrough 3-dimensional solar cell technology to maximize the conversion of sunlight into electricity, today discussed the impact of California Senate Bill 594 on the growth of its pending acquisition, SUNworks.
"SUNworks has a proven record as a high quality solar systems provider and has a great opportunity to grow," said Jim Nelson, CEO of Solar3D. "With the passing of SB 594, the stars seem to be aligning to help accelerate the company's rapid increase in revenue."
SB 594, signed into law on September 27, 2012 allows Net Energy Metering (NEM) customers-generators with multiple meters to aggregate the electrical load of the meters located on the property where the generation facility is located and on all property adjacent or contiguous to the property on which the generation facility is located. These properties must be solely owned by the eligible customer-generator.
Before the passage of SB 594, Net Energy Metering only provided solar energy credits against electrical loads connected to the same meter to which the solar array was connected. For example, excess solar energy from the rooftop of Building A could not be applied against the electricity usage in Building B, if the two buildings were not on the same meter. This made investment decisions in solar systems difficult, if not impossible in some cases. With SB 594, a customer can now consider Building A and Building B as one big solar system producing power for all the buildings on the same site. As a result, a solar array in one part of a farm can now receive credit for a water pump one mile away.
"This bill represents a giant step forward in simplifying investment decisions for customers in the agricultural and commercial community," said Abe Emard, CEO of SUNworks. "We can now offer SB594 to our new and existing agriculture customers interested in solarizing their deep well pumps, as well as other electrical loads they wish to aggregate. On average, most farmers have at least 10 - 15 deep well pumps of which less than 1% is solarized. Before SB594, many farmers declined to solarize their deep well pumps simply because they did not want multiple system arrays scattered about their valuable tracts of land. The change they were waiting for has come in the form of SB 594."
Last month, Solar3D announced the execution of a definitive agreement to acquire Solar United Networks, Inc., (SUNworks) of Roseville, CA. SUNworks, focused on the design, installation and management of solar energy systems for commercial, agricultural and residential customers, is one of the fastest growing solar systems providers in California. The company has delivered hundreds of 2.5 kilowatt to 1-megawatt commercial systems and has the capability to deliver systems as big as 25 megawatts. Its revenue for 2013 is estimated to be in excess of $7,500,000, with estimated pre-tax profits of almost $1,000,000. After the acquisition, SUNworks will continue operations as a wholly owned subsidiary of Solar3D. The transaction is expected to close in January 2014.
Nelson concluded, "As we approach the anticipated closing of the SUNworks transaction, we are actively seeking new opportunities that will dramatically increase sale and earnings. SB 594 will provide SUNworks a new way to serve its agricultural and business customers."
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