Pineapple Subsidiary SUNation Surpasses Goal of $15 Million in Contracted Commercial Work

Rhea-AI Summary

SUNation Energy, a subsidiary of Pineapple Energy, has exceeded its projected goal by executing over $15 million in commercial and industrial sales contracts. This milestone was achieved ahead of schedule for 2023. The demand for solar installations has surged, partly due to favorable policies from the Inflation Reduction Act passed in August 2022. SUNation's project pipeline now stands at over $65 million, with a focus on maintaining high-quality standards by limiting projects to their geographic region. Interim CEO Scott Maskin and General Manager John Mucci attribute this success to the team's expertise and safety record, attracting numerous national developers.

Positive

• SUNation Energy surpassed its $15 million sales contract goal.
• The project pipeline now exceeds $65 million.
• High demand for solar installations post-Inflation Reduction Act.
• SUNation attracted national developers due to safety and expertise.

Negative

• SUNation has had to turn away projects outside its geographic region due to manpower constraints.

Financial Analyst

The recent milestone achieved by SUNation Energy, a subsidiary of Pineapple Energy, in surpassing $15 million in contracted commercial work indicates strong performance in their commercial and industrial sectors. This is noteworthy as they have exceeded their projections set in late 2023. The fact that their project pipeline now exceeds $65 million is significant, especially in an industry that's benefiting from federal incentives such as the Inflation Reduction Act. This law effectively increased both federal and state incentives for renewable energy projects, creating advantageous conditions for companies like SUNation.

For retail investors, the financial implications are promising. Surpassing their projected goal suggests effective execution and growing market demand. However, it's important to consider potential risks such as maintaining quality with increased workload and geographical constraints. Investors should also be aware of the company’s dependency on external policy conditions, which can be volatile.

Overall, the outlook is positive due to the strong pipeline and demand, but careful monitoring of execution and policy changes is advised.

Market Research Analyst

SUNation Energy's achievement highlights a rapidly growing trend in the renewable energy sector, specifically in commercial and industrial solar installations. The demand surge, partly driven by the Inflation Reduction Act, indicates a broader industry shift toward sustainable energy solutions. This aligns with global trends as businesses and non-profits seek to maximize their Internal Rates of Return (IRR) through renewable energy investments.

For retail investors, it’s important to note that SUNation is benefiting from macroeconomic trends and their established reputation for safety and detail-oriented project management. This positions them well in a competitive market. However, the high demand leading to them turning away projects outside their region could signal capacity constraints. Investors should watch for any strategic moves to expand operational capacity or geographic reach to capitalize on these growth opportunities.

The renewable energy sector’s growth potential, coupled with SUNation’s milestone, is a positive signal but requires careful consideration of operational scalability and market saturation risks.

SUNation Energy Surpasses Commercial and Industrial Milestone, Sees Potential for Robust Project Pipeline in Coming Year

MINNETONKA, Minn., June 20, 2024 (GLOBE NEWSWIRE) -- SUNation Energy, the Long Island, New York-based subsidiary of Pineapple Energy (Pineapple), has reported over $15 million in executed sales contracts and confirmed Letters of Intent in their commercial and industrial project pipelines.

This milestone figure surpasses SUNation’s projection for commercial and industrial work, which was established in late 2023.

“I’m incredibly proud of the Commercial team and their diligence in establishing SUNation as the “go-to” company for commercial and industrial projects across New York State,” Scott Maskin, Pineapple’s Interim CEO, said.

“SUNation’s expertise has attracted many national developers who chose us for our safety record and attention to detail,” John Mucci, SUNation’s General Manager of New York Operations, added. “Our team studies every conceivable detail and potential project vulnerability prior to contract by leveraging our unmatched expertise in navigating the complex utility interconnection process.”

Since federal passage of the Inflation Reduction Act in August of 2022, which expanded federal and state incentives for renewable projects, demand for commercial and industrial solar installations across the United States has amplified. SUNation has benefitted from this recent momentum, having a variety of new projects within their pipeline that serve municipal, non-profit, and for-profit sectors.

“Our pipeline now exceeds $65 million when you consider that many of the national developers we serve elect to supply much of the equipment needed to complete the project,” Mucci stressed. “Demand has been so high that we’ve actually been turning away work outside of our geographic region to ensure that our team has the manpower to maintain our quality-first approach.”

Maskin noted that he looks forward to seeing how the commercial team completes simultaneous projects across the pipeline while adding to the 2025 backlog.

“Knowing the rhythms of the solar coaster, diversification has always been the goal of SUNation,” Maskin said. “Right now, we’re seeing marginal growth in residential and storage spaces, but the Commercial and Industrial sectors are simply on fire.” “Between these trends, and having both businesses and non-profits seeing the potential of maximizing their IRR’s, this will be THE growth sector to watch” Maskin concluded.

About Pineapple Energy

Pineapple is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation Energy, Hawaii Energy Connection, E-Gear, Sungevity, and Horizon Solar Power) provide those within the Residential and Commercial sectors an end-to-end product offering spanning solar, battery storage, and grid services.

About SUNation Energy

SUNation Energy, a Pineapple Energy company, is the solar and energy expert trusted by over 9,000 homeowners, businesses and municipalities since 2003 for professionally installing the highest quality equipment with an exceptional customer experience. With offices in Ronkonkoma, NY and Tampa, FL, SUNation Energy offers the complete in-house sustainable energy experience including residential and commercial solar installation, community solar, roofing, backup battery storage, EV charging, and more. Their not-for-profit corporation, SUNation Cares, also provides the gift of free electricity for life to Veterans and their families. SUNation was recently recognized as NYSERDA Quality Solar Installer Platinum Status in 2024, one of five solar companies in New York to achieve platinum status and the only on Long Island.

Forward Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, and future opportunities. These statements are based on Pineapple’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements here due to changes in economic, business, competitive or regulatory factors, and other risks and uncertainties, set forth in Pineapple’s filings with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date of this press release. Pineapple Energy does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.

Contacts:
Scott Maskin
Interim Chief Executive Officer
+1 (631) 823-7131
scott.maskin@pineappleenergy.com

Pineapple Investor Relations
+1 (952) 996-1674
IR@pineappleenergy.com

FAQ

What milestone did SUNation Energy achieve in its commercial and industrial projects?

SUNation Energy surpassed its goal of $15 million in executed sales contracts for commercial and industrial projects.

How much does SUNation Energy's project pipeline currently stand at?

SUNation Energy's project pipeline currently exceeds $65 million.

What has driven the increased demand for SUNation Energy's solar installations?

The increased demand is partly driven by the Inflation Reduction Act passed in August 2022, which expanded federal and state incentives for renewable projects.

Why has SUNation Energy had to turn away projects?

SUNation Energy has turned away projects outside its geographic region to ensure it can maintain its quality standards.