RGS Energy (NASDAQ:RGSE) has entered into an exclusive domestic and
international license agreement with The Dow Chemical Company for
the POWERHOUSE™ solar shingles system, an innovative and
aesthetically pleasing solar shingle system developed by Dow that
has been deployed on more than 1,000 homes. See images of the solar
shingles and additional information about POWERHOUSE™ solar
shingles at RGSPOWERHOUSE.com.
RGS will lead all commercial activities for the product,
including supply chain management, marketing, sales, installation
and warranty.
Starting in 2008, Dow began research and development of solar
shingles designed to be integrated directly into a roof. The first
and second generation products, POWERHOUSE™ 1.0 and 2.0 solar
shingles, were based on CIGS (copper indium gallium selenide)
technology, and were deployed in more than 1,000 solar
installations across 18 states.
To make the product more economic to homeowners, beginning in
2015, Dow began development of POWERHOUSE™ 3.0 solar shingles which
uses traditional silicon solar cells rather than CIGS technology.
This shift significantly reduced the cost, while improving panel
efficiency. Dow holds numerous patents covering the POWERHOUSE™ 3.0
solar shingles technology, all of which are now exclusively
licensed to RGS.
RGS and Dow anticipate UL product certification during the first
quarter of 2018 and are taking pre-orders in advance of final
written certification. RGS plans to begin sales and
installation of POWERHOUSE™ 3.0 solar shingles immediately
thereafter.
Market Potential
The POWERHOUSE™ product is well-suited for homeowners needing to
replace their roofs. With a typical asphalt roof lasting 20 to 25
years, RGS estimates that annually there are approximately 5
million homes needing new roofs in the United States. Approximately
80 percent of homes in the U.S. are asphalt roofs. POWERHOUSE™ 3.0
solar shingles was designed to blend in perfectly with asphalt
roofs and includes a low profile making the solar array less
conspicuous as compared to traditional solar panels.
For homeowners needing a new roof, RGS believes that POWERHOUSE™
3.0 solar shingles are aesthetically more pleasing than a
traditional solar array, and also will be more economic to
homeowners.
New home builders will continue to be a target segment for the
POWERHOUSE™ 3.0 solar shingles, as the market demand for building
integrated photovoltaic (BIPV) products is increasing. In fact,
some cities have mandated solar for new home builds.
Outside of the U.S., the exclusive license allows RGS to market
the product internationally. According to BBC Research, the global
market for BIPV will grow at a 12.2% CAGR from $2.5 billion in 2016
to $4.3 billion by 2021.
RGS anticipates a materially lower cost of customer acquisition
than its traditional solar business achieved by (i) expanding upon
the network of authorized local roofers utilized by Dow for lead
generation and installation and (ii) direct sales of POWERHOUSE™
solar shingles to new home builders to be installed in their new
communities.
Management Commentary
“This enhanced POWERHOUSE™ 3.0 system comes at an opportune
time,” said Dennis Lacey, CEO of RGS Energy. “At an increasing
rate, goals and targets are being set for renewable energy. Some
localities are mandating solar for new build homes. Customers also
increasingly want their solar installations to be an aesthetic and
technical improvement integrated with a home renovation, rather
than a hefty module that is bolted onto their rooftop. POWERHOUSE™
3.0 solar shingles fulfills this need. We have been the POWERHOUSE™
solar shingles official warranty service provider since 2015. Given
this familiarity with Dow and POWERHOUSE™ solar shingles, we are in
a unique position to commercialize POWERHOUSE™ 3.0 solar
shingles.”
“We are very pleased to partner with RGS Energy for the
commercialization of our POWERHOUSE™ 3.0 product,” said Kirk
Thompson, Business Director of Dow Solar. “We believe that RGS is
well positioned to optimize the market potential for POWERHOUSE™
3.0 solar shingles system. The design of POWERHOUSE™ 3.0 solar
shingles addresses the critical requirements of customers and
installers and achieves a price point that will be very
competitive.”
Manufacturing Supply Chain, Sales and Installation
Partners
The patented POWERHOUSE™ 3.0 product includes a base assembly
and electrical connector into which a solar laminate is inserted.
RGS expects the base assembly and electrical connector will
continue to be made by U.S.-based companies. To ensure the
commercial feasibility of the product, RGS expects the solar
laminate will be manufactured overseas.
RGS plans to expand its call center and digital marketing
program to aggressively market the product using media that is well
suited to demonstrate the ease of installation and aesthetic value
of the product, such as television.
POWERHOUSE™ 3.0 solar shingle system was designed to enhance its
appeal to roofing companies. The new product works with traditional
roofing products, making installation simple and efficient. RGS
plans to utilize and expand the regional roofing companies used for
installation of the earlier generations of POWERHOUSE™ product, as
well as enter new jurisdictions beyond the initial 18 where the
earlier generations were installed.
The commercialization of POWERHOUSE™ 3.0 solar shingles is
expected to generate jobs in the United States.
Conference Call and Webcast Details
RGS will host a conference call today at 2:15 p.m. Mountain time
to discuss the new agreement.
Participants will include RGS Energy CEO, Dennis Lacey, and
Business Director of Dow Solar, Kirk Thompson.
Date: Wednesday, October 4, 2017 Time: 4:15 p.m.
Eastern time (2:15 p.m. Mountain time) Toll-free dial-in
number: 1-800-263-8506 International dial-in number: 1-719-457-2689
Conference ID: 8654305
Webcast: http://public.viavid.com/index.php?id=126573
The conference call will be webcast live and available for
replay via the investor relations section of the company's website
at investors.rgsenergy.com.
Please call the conference telephone number five minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after 7:15 p.m.
Eastern time on the same day through October 11,
2017.
Toll-free replay number: 1-844-512-2921 International replay
number: 1-412-317-6671 Replay ID: 8654305
More information about the POWERHOUSE™ 3.0 product will be
available at RGSPOWERHOUSE.com.
About RGS Energy
RGS Energy (NASDAQ:RGSE) is a residential and small business
commercial solar company since 1978 which has installed more than
25,000 solar power systems. RGS Energy makes it very convenient for
customers to save on their energy bill by providing turnkey solar
solutions - from system design, construction planning, customer
financing assistance, installation, to interconnection and
warranty.
For more information, visit RGSEnergy.com, on Facebook at
www.facebook.com/rgsenergy and on Twitter at
www.twitter.com/rgsenergy. Information on such websites is not
incorporated by reference into this press release.
RGS Energy is the Company’s registered trade name. The Company
files periodic and other reports with the Securities and Exchange
Commission under its official name “Real Goods Solar, Inc.”
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 that involve risks and uncertainties, including statements
regarding the RGS Energy’s results of operations and financial
positions, and RGS Energy’s business and financial
strategies. Forward-looking statements are neither historical
facts nor assurances of future performance. Instead, they
provide our current beliefs, expectations, assumptions, forecasts,
and hypothetical constructs about future events, and include
statements regarding our future results of operations and financial
position, business strategy, budgets, projected costs, plans and
objectives of management for future operations. The words
“expect,” “intend,” “plan,” “future,” “believe,” “may,” “will,”
“estimate” and similar expressions as they relate to RGS Energy or
Dow are intended to identify such forward-looking statements.
Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved, if at all. Forward-looking
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements.
Therefore, RGS Energy cautions you against relying on any of these
forward-looking statements.
Key risks and uncertainties that may cause a change in any
forward-looking statement or that could cause our actual results
and financial condition to differ materially from those indicated
in the forward- looking statements include: the ability to
successfully commercialize POWERHOUSE 3.0 to homeowners and new
home builders; the ability to obtain requisite certification of
POWERHOUSE 3.0; the adequacy of and access to necessary capital to
commercialize POWERHOUSE 3.0; the satisfaction of other conditions
to the license agreement; RGS Energy’s ability to manage supply
chain in order to have production levels and pricing of the
Powerhouse shingles to be competitive; the ability of RGS Energy to
successfully expand its operations and employees and realize
profitable revenue growth from the sale and installation of
POWERHOUSE 3.0, and to the extent, anticipated; the potential
impact of the announcement with employees, suppliers, customers and
competitors; changes in general economic, business and political
conditions, including tariffs on imported solar cells and changes
in the financial markets; significant competition that RGSE faces;
compliance with extensive government regulation.
You should read the section entitled “Risk Factors” in our 2016
Annual Report on Form 10-K, as amended, and in our Quarterly Report
on Form 10-Q/A for the quarter ended June 30, 2017, each of which
has been filed with the Securities and Exchange Commission, which
identify certain of these and additional risks and uncertainties.
Any forward-looking statements made by us in this press release
speak only as of the date of this press release. Factors or events
that could cause our actual results to differ may emerge from time
to time, and it is not possible for us to predict all of them. We
do not undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
™ Trademark of The Dow Chemical Company, used under license.
RGS Energy’s Investor Relations Contact
Ron
Both
Managing Partner, CMA Tel 1-949-432-7566 RGSE@cma.team