REC Solar sells residential solar division
February 6, 2014
San Luis Obispo based REC Solar is selling its residential division with plans to focus on commercial clients. Rec Solar employs about 200 people on the Central Coast.
Sunrun, a San Francisco based startup which raised about $155 million in venture capital, purchased REC Solar’s residential division for an undisclosed amount. REC Solar parent company Mainstream boasted $254 million in revenue in 2011.
Since then, the market was flooded with low-cost Chinese panels. Along with zero-down financing models, profit margins for residential instillations were squeezed.
“The commercial and residential solar businesses are built upon fundamentally different models, with unique customer bases and disparate sources of capital,” said Paul Detering, CEO of REC Solar in a press release. “With this decision, REC Solar can better serve the needs of our commercial solar customers moving forward.”