Sunworks Stock

Sunworks, Inc. provides photovoltaic (PV) and battery based power and storage systems for the residential and commercial markets. Commercial projects include commercial, agricultural, industrial and public works projects.

Residential Solar

Through its Solcius operating subsidiary, the company designs, arranges financing, integrates, installs, and manages systems, primarily for residential homeowners. The company sells residential solar systems through multiple channels, through its network of sales channel partners, as well as a growing direct sales channel strategy. The company has direct sales and/or operations personnel and operate in several residential markets, including California, Utah, Nevada, Arizona, New Mexico, Texas, Colorado, Minnesota, Wisconsin, and South Carolina. Minnesota.

Commercial Solar Energy

Through its Commercial Solar Energy CSE subsidiary, the company designs, arranges financing, integrates, installs, and manages systems ranging in size from 50kW (kilowatt) to multi-MW (megawatt) systems primarily for larger commercial and public works projects. Commercial installations have included installations at office buildings, manufacturing plants, warehouses, service stations, churches, and agricultural facilities such as farms, wineries, and dairies. Public works installations have included school districts, local municipalities, federal facilities and higher education institutions. Historically, the CSE subsidiary participated in the California Residential solar market. Following the Solcius Acquisition, all new residential sales are managed under the Solcius brand. Due to materiality, the company reported the remaining revenue of legacy residential projects in the Commercial Solar Energy segment. CSE primarily operates in California.

Company Strategy

The company intends to capitalize on the growth outlook for commercial and residential solar markets in North America.

Sales and Marketing

The company is adding to its in-house direct residential sales force and marketing capabilities while it continues to partner with authorized dealers and select third-party sales originators.

Financing

To promote sales, the company assists customers in obtaining financing through its network of lenders that offer leases, loans or Power Purchase Agreements (PPAs). The company expanded its financing partner relationships in 2022 and will continue to do so in the future, as financing products evolve.

Suppliers

The company utilizes strategic partnerships with subcontractors for carport construction, and electrical installations, for racking and solar panel installations, as well as subcontractors for roofing, grading, landscaping, and construction for its larger commercial projects.

Installation

The company is a licensed contractor in the markets it serves, and it is responsible for every customer installation. The company manages the entire process from permitting through inspection to interconnection to the power grid, thereby making the system installation process simpler and as seamless as possible for its customers.

After-Sales Support

The company offers continuing operational and maintenance services for its installed residential and commercial PV systems by providing extended factory equipment technical support and acting as a service liaison using its proprietary knowledge, technology, and solar electric energy and battery system qualified engineering and technical staff. The company generally responds to its job site related issues within 24 hours. For commercial customers the company offers separate operation, maintenance and monitoring contracts. These operation, maintenance and monitoring contracts generally have terms ranging from 5 to 25 years.

Facilities

The company maintains sales and installation offices in Roseville, Sacramento, Morgan Hill, Durham, Tulare, Santa Ana and Riverside, California. The company also maintains sales and installation offices in Provo and St. George, Utah; Phoenix, Arizona; Las Vegas, Nevada; Centennial, Colorado; El Paso, Mesquite and McAllen, Texas; Albuquerque, New Mexico; Bloomingdale, Minnesota; Columbia, South Carolina; and Mequon, Wisconsin. The company leases all of its offices and facilities.

Customers

The company’s residential operations address the needs of property owners by installing systems typically smaller than 20kW. The company facilitates purchase or lease financing and offers multiple product options to fit the specific needs of each customer.

The company installs systems for the commercial market and for public works projects. The company defines small commercial and public works projects as the installation of systems under 100kW, whereas large projects involve the installation of systems greater than 100kW. Solar projects have received limited financing from traditional lending sources, but it is encouraged by municipal PACE programs in California which have drawn funding sources, such as Ygrene Energy Fund into the financing of energy projects. Public works projects are frequently financed through various PPA arrangements, often in conjunction with SPURR (School Project for Utility Rate Reduction) programs, a Joint Powers Authority in California. Cycle times vary from twenty weeks to more than a year, depending on customer specifications, supply chain, permitting and engineering lead times.

Seasonality

The company’s revenue is impacted by seasonal weather patterns. In addition, some customers prefer to complete projects by the end of a calendar year to realize the benefits of available subsidy programs prior to year-end (year ended December 31, 2022).

Government Regulation

The company’s operations are subject to stringent and complex federal, state and local laws, including regulations governing the occupational health and safety of its employees and wage regulations. For example, the company is subject to the requirements of the federal and California Occupational Safety and Health Act, as amended (OSHA), the U.S. Department of Transportation (DOT), and comparable state laws that protect and regulate employee health and safety.

History

The company was founded in 2002. It was incorporated in the state of Delaware in 2002. It was formerly known as MachineTalker, Inc. and changed its name to Solar3D, Inc. in 2010. Further, the company changed its name to Sunworks, Inc. in 2016.