Solar company sale could mean landmark deal is near

April 4, 2008

Wendy Culverwell
Business Journal staff writer
Portland Business Journal

A solar industry giant has acquired a local installer, fueling speculation it is nearing a multimillion dollar agreement with Multnomah County to install photovoltaic electrical systems on local rooftops.

Sun Edison LLC, based in Beltsville, Md., said this week it has acquired Renewable NRG, a young Portland company that specializes in installing commercial solar systems. The terms were not disclosed.

Sun Edison separately is negotiating a deal with Multnomah County to put solar panels on the roofs of six county buildings. With a combined output of at least one megawatt, it would roughly double the amount of solar power produced in Oregon and turn Portland into a demonstration project.

Officially, neither the county nor Sun Edison has confirmed the deal is in the works, but officials have cast wide hints about a pending agreement with the nation's largest solar company, which is Sun Edison.

The county, led by Commissioner Jeff Cogen, wants to promote the burgeoning solar industry by becoming a high-profile customer for rooftop electricity.

Renewable NRG is exactly the kind of firm that is suited to do the work.

Russ Wright formed the company in 2006 after 15 years in the banking and mortgage industry. Renewable NRG installs commercial solar systems like the ones imagined for the county.

Wright wasn't available to discuss the acquisition, but will continue to pursue business opportunities in the Portland area for Sun Edison, according to the company's announcement.

He also will continue as treasurer of the Oregon Solar Energy Industries Association.

The company's current clients include Parr Lumber and the city of Hillsboro, which both have installed photovoltaic systems to provide electricity for their buildings.

Cogen said he's pleased to see Sun Edison taking steps to build its Oregon presence.

Without confirming the pending agreement, he acknowledged that it has an interest in the county's vision of solar-powered public buildings.

"It reflects their interest in the market and they think there's a lot of opportunity here," he said, adding that it is a good sign for dreams of a solar-powered economy.

"I think it's a good sign that this is part of our economic future."

A large part of Sun Edison's solar business centers on clients without the interest or resources to pay the upfront capital cost of going solar.

Sun Edison designs, installs and owns its installations and its clients enter long-term contracts to purchase the power they produce.

Multnomah County would enter a 20-year contract to buy the power generated on its rooftops from Sun Edison.

"It reflects their interest in the market and they think there's a lot of opportunity here," he said.

More important, it is another solar-oriented business operating in Oregon.

"I think it's a good sign that this is part of our economic future," Cogen said.

Joe Reinhart, president of the Oregon Solar Energy Industries Association, welcomed the news as well.

"Sun Edison is one of the significant national players and they have chosen to enhance their presence here," he said.

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