Real Goods Solar Triples In Value After Licensing Deal With Dow Chemical
The surge is attributed to the $6 million market cap company's announcement it has entered into a new license agreement with The Dow Chemical Company related to its Powerhouse solar shingles system, a system developed by Dow Chemical Company that has already been deployed to more than 1,000 homes.
As part of the agreement, Real Goods Solar will take a leadership role in all commercial activities for the product, including supply chain management, marketing, sales, installation and warranty.
Real Goods Solar and Dow Chemical Company expect to receive UL product certification in the first quarter of next year and are already taking pre-orders ahead of the final written certification.
Dow Chemical Company began research and development of solar shingles, which can be integrated into a homeowner's roof, Real Goods Solar explained in a press release. The first and second generation of its Powerhouse solar shingles were widely accepted by consumes. But the company is developing Powerhouse 3.0 which uses silicon solar cells instead of CIGS technology.
Dow Chemical Company holds multiple patents which cover the Powerhouse 3.0 solar shingles which are now being exclusively licensing to Real Goods Solar.
"This enhanced POWERHOUSE 3.0 system comes at an opportune time, said Dennis Lacey, CEO of RGS Energy. "At an increasing rate, goals and targets are being set for renewable energy. Some localities are mandating solar for new build homes. Customers also increasingly want their solar installations to be an aesthetic and technical improvement integrated with a home renovation, rather than a hefty module that is bolted onto their rooftop. POWERHOUSE 3.0 solar shingles fulfills this need. We have been the POWERHOUSE solar shingles official warranty service provider since 2015. Given this familiarity with Dow and POWERHOUSE solar shingles, we are in a unique position to commercialize POWERHOUSE 3.0 solar shingles."
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.