Tri Global Energy extended its renewable energy business from utility-scale wind energy projects to solar portfolios by forming the TGE Solar business unit after acquiring K12Solar, a California-based provider of roof-top solar photovoltaic energy systems.
The White House has released the third round of U.S. business commitments for the American Business Act on Climate Pledge on November 30. Tri Global Energy signed the Pledge earlier this year and committed to diversify its renewable power holdings.
The company decided to acquire K12Solar for its business expansion plan because K12Solar is a pioneer for the business model that utilizes the PACE program (Property Assessed Clean Energy program). The program is an innovative mechanism for financing energy efficiency and renewable energy improvements on private property and other sources of capital to deliver the lowest cost of solar. By using this program, Tri Solar will be able to offers its customers solar panels with no money down through a long-term contract to buy solar energy in a monthly bill over time. Customers pay monthly energy bills that are usually lower than what they would pay to their utility.
"K12Solar's portfolio will add a growing, high-quality, long-term and contracted solar asset base to Tri Global Energy, strengthening our renewable power platform and reinforcing our commitment to clean energy," Billingsley noted. "It is a logical next step in our expansion in renewable power.
"The exceptional management team has built K12Solar into one of the leading providers of distributed solar energy in a short amount of time," said John Billingsley, Tri Global Energy Chairman and CEO. "The success of K12Solar is a testament to the strength of the K12Solar business strategy and will enable us to rapidly grow our solar development and operations group."
K12Solar will keep its headquarters in California, and will focus on providing solar to non-profit organizations and schools by its business model. So far, K12Solar’s team has helped install over 1,000 solar projects, adding its customers with more than US$300 million revenues.