Rochester, NY -- (ReleaseWire) -- 08/21/2020 --Singlepoint Inc. (OTCQB:SING) has begun executing its strategic plan to become a major provider of solar+ services in all 50 states. The company is already operational in 34 states with service to residential and commercial customers. The company announced plans to make acquisitions of existing companies in the solar energy space in order to quickly increase market share and revenue with the aim of establishing long-term profitability.
The company has been seeking out companies whose acquisition would complement Single Point Incs existing operations and increase revenue substantially. One such acquisition is Standard Eco, which Singlepoint's subsidiary Direct Solar America signed a letter of intent (LOI) to acquire. Standard Eco is already an operationally profitable company.
"Once installers reach a certain size, averaging between 60-100 installations per month, it becomes increasingly difficult to scale beyond that," Direct Solar America's CEO Pablo Diaz said. The hope is to combine the Direct Solar sales network with local installers coming from Standard Eco. This vertical integration will create value and allow installers to scale beyond the limits previously encountered.
Operational scale is another focal point that Singlepoint hopes to address. Especially with the COVID-19 pandemic going on, as homes serve as offices and schools, the concerns of whether a home has enough power to handle all of the additional energy requirements are valid.
Solar batteries that store the solar power to be used as needed are a means of addressing these growing power requirements. Singlepoint sees a great opportunity with its Solar+ battery and the company hopes to be positioned nationally in order to capitalize on these growing energy needs.
Solar Energy Has a Bright Future
By the end of September 2019, there were over 2 million solar PV systems deployed in the United States. These totaled about 71,300 MW of solar capacity and generated in excess of 100 TWh of electricity. The U.S. Bureau of Labor Statistics predicts that solar PV installer will be the single fastest-growing job between 2018 and 2028, earning a medium income of over $42,000.
The issue with solar has been that when the sun is out, solar energy is plentiful—so plentiful in fact that energy prices in California can go negative. But when the sun goes down, power plants have to roar back to life due to supply electricity just as the demand is increasing. This phenomenon is referred to as the Duck Curve for the energy graph's resemblance to a duck, with a vast valley of low utilization from around 9 A.M. to about 6 P.M., when demand begins its climb toward the peak for the day and followed by another plummet at bedtime.
Energy storage is the answer to the waning nighttime solar energy and this combination of solar and batteries is gaining steam. By storing the excess energy produced by the solar PVs during the day, the energy can be utilized anytime. As solar energy becomes cheaper and more widely available, so too will the cost-effectiveness and availability of solar batteries. Not only are individuals and businesses on board with solar power and solar batteries, but the government is also in favor of it due to the environmental benefits and the reduction in utilization of government-funded infrastructure.
California is a hotbed for solar energy. It leads second-place North Carolina by almost five times the MWs. It is also more politically savory for governments in California to pass and enforce solar mandates than it is in the sunny, but more conservative South. The rest of the states in the top five include North Carolina, Texas, Florida and Nevada. The top three states for the manufacture of PVs are Ohio, Georgia and New York, with these comprising almost 60% of the total US manufacturing capacity.
In 2018, the U.S. ranked second in the world in solar PV deployments, with only China having more. China also leads the world in the production of solar PV panels. One of the most significant challenges facing the solar industry is the import tariffs put on solar panels by President Trump. These tariffs are estimated to have cost some 62,000 jobs and about $20 billion in private investment. If something happens to eliminate these tariffs, whether a change of heart or a new administration, the added growth potential for the solar industry could be quite significant.
2021 is believed to represent a great opportunity for solar energy, as both political parties in the U.S. have supported legislation that invests billions towards infrastructure for that year. This represents not only an opportunity to make energy production environmentally sound but also a great chance to achieve energy independence. Increased regulatory interest in renewable energy means that the future of solar will be driven not only by customers looking to save money but also by policymakers looking to achieve environmental standards and corporations looking to meet regulatory requirements. This could make solar energy an even more essential part of our infrastructure and economy.
COVID-19's Effect on the Solar Industry
COVID-19 temporarily halted the growth of solar. In June 2020, an analysis showed that the solar industry would only employ 188,000 people as opposed to the 302,000 that was earlier projected. This marks a low for the solar industry but suggests a great time for investors to take a position in solar companies, as they have nowhere to go but up. The outlook for solar in the next three years is necessarily tied up with predictions about COVID-19 and how it is managed. The sooner the pandemic is over and installations can resume in a safe and reasonable way, the sooner the solar industry—like any other industry—can recover.
The residential market is what has been immediately impacted, as the installation cycles for residential properties are much shorter than commercial properties or utilities. The good news is that the solar market in the U.S. is still expected to implement a record number of installations in 2020.
The global geopolitical situation regarding oil has always been positive for renewable energy. However, in the early weeks of the COVID-19 pandemic, conflict between Russia and Iran resulted in incredibly low oil prices. It then seemed that any argument for green energy seemed quaint in the face of such low oil prices. However, with the oil price recovering to more normal ranges and the potential for COVID-19 to destabilize parts of the world, the U.S. included, an energy security argument for solar can also be made. Now that the solar industry is maturing and has become both more reliable and cost-effective, its potential to be economically viable without subsidies is increased.
Singlepoint (OTCQB:SING) is poised to take advantage of the increasing demand for solar energy as it makes moves to put itself in a position to be a national player. With subsidiary Direct Solar America's acquisition of Standard Eco, the company can combine its already-developed sales network with skilled local installers. As the growth of solar batteries accelerates, Singlepoint is well-positioned to take advantage of that trend as well. With its Solar+ battery, the increasingly national scope of the company enables them to find a market through their local installers that can yield not only big savings for their customers but great profits for the company and exceptional results for its shareholders.
About SinglePoint, Inc.
SinglePoint, Inc. (OTCQB:SING) is a fully reporting company with core holdings in Solar Energy Services. Acquired in May 2019, Direct Solar America, a majority owned subsidiary, now operates its leading national solar sales brokerage model in 34 states. In the past year, Direct Solar America has virtualized its sales platform and has added its corporate offerings. The Company has a portfolio of non-core focused businesses that are searching for strategic partnerships or other alternative solutions. SinglePoint is committed to positioning the Company to be able to up list to the highest exchange possible which we feel is a benefit to our stakeholders and shareholders.
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For more information visit: www.SinglePoint.com
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