Morrisville, N.C.-based solar project integrator Southern Energy Management (SEM) has sold its industrial and large commercial solar services business unit to PowerSecure International, a provider of utility and energy technologies to electric utilities and their customers.
PowerSecure will operate the new business unit as a separate subsidiary, and SEM will retain part ownership of the new company, which is being called Southern Energy Management-PowerSecure (SEM-PS). SEM now plans to focus exclusively on the residential small commercial market.
‘Over the last few years, as we've had the opportunity to work on bigger projects farther afield with our large industrial and commercial clients, it's been challenging on our resources given the difficult capital markets,’ notes SEM president and co-founder Maria Kingery, explaining the company's decision to sell this segment of the business.
The new company is expected to begin work on a 4.5 MW system later this month. Any large-scale projects already under contract with SEM will be handed off seamlessly to SEM-PS, according to the companies.
PowerSource says its decision to offer solar technology through the acquisition comes after a thorough evaluation of the industry and of the new, significantly improved economics of distributed solar energy systems.
The precipitous decrease in the cost of solar panels and corresponding increases in their energy efficiency, in conjunction with the company's distributed-generation systems, are expected to provide the company with a sustainable market opportunity to participate in the downstream segment of the solar business, and bring solar energy projects to its customers and utility partners.
PowerSecure's 90% controlling interest in SEM-PS was acquired for approximately $4 million including cash and assumed liabilities, and the SEM team owns the remaining 10% non-controlling interest. PowerSecure has the option to increase its ownership of SEM-PS to 100% in June 2014.