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SolarJuice

SolarJuice

Wetherill Park, Australia

Industry: Photovoltaic Energy

Region: Australia 🇦🇺

Founded: 2017

Expected Valuation: $154 million

IPO Date: 2023 (Expected)

SolarJuice Co., Ltd.

Key Company Facts

Founded2017
HeadquartersWetherill Park, Australia
SectorEnergy
IndustryPhotovoltaic and Smart Energy Solutions
FoundersAndrew Burgess
Number of employees274
IPO DateApril 6th, 2023
Number of investorsN/A
Total fundingN/A
Valuation estimate$154 million USD

Company Overview & History

SolarJuice Co Ltd, established in 2009, is a company that provides solar photovoltaic (PV) based energy solutions and roofing installation for residential and small commercial building markets.

It has a presence in Australia and the United States through its three main business units: SJ Australia, SJ America, and SJ Technology.

The firm operates in two segments: Solar products distribution and Roofing and solar energy systems installation, with the majority of revenue deriving from the solar products distribution segment​​.

SolarJuice began in Australia in 2017 and has its head office in Sydney. The company operates throughout Australia, New Zealand, and in five US states: California, Colorado, Nevada, Florida, and Texas.

To establish its presence in the US market, SolarJuice acquired Petersen-Dean Inc. The company’s product is known under the brand Solar4America in the US, and as SJ Australia in New Zealand​.

Financial Performance

In 2021, SolarJuice Co. reported an annual revenue of $153.28M, marking a growth of 35.04%. The company’s trailing twelve months (ttm) revenue is $159.00M.

As of the last report, SolarJuice has 274 employees, and the revenue per employee is approximately $580,274.

The company’s market cap is reported to be $154.00M​​. By 30 June 2022, SolarJuice had attracted $35 million USD of investments, with SPI Investments Holding Limited being the main investor.

Revenue

YearRevenue (USD)
2019$124 million
2020$114 million
2021$153 million

Business Model

SolarJuice Co. Ltd. operates by manufacturing, distributing, and mounting solar panels and related accessories. Their product line includes solar panels, solar inverters, batteries, and other accessories.

The company is headed by its CEO Hoong Khoeng Cheong, formerly CEO at SPI Energy. SolarJuice’s production hub for manufacturing solar modules is based in California.

The main sales market for SolarJuice is Australia, accounting for 75% of the total revenue. As of the time of writing, the company had a client base of 5,000 and was planning to increase its presence in the US market.

The company’s business model is characterized as simple and clear, with a promising target market and a stable client base.

The company has shown revenue growth and a shrinking net loss, indicating positive progress. However, it also faces challenges such as high competition and a lack of net profits. It’s also noted for its dependence on state support

Estimated Valuation

YearValuation (USD)
2023$173 million

Risk Factors

While the company has established a strong presence in the market, it must navigate several potential risks:

  • Market Volatility: The solar industry is heavily influenced by changes in government policies, technological innovations, and fluctuations in energy prices. Any sudden shifts in these areas could affect SolarJuice’s operations and profitability.

  • Supply Chain Issues: The solar industry, like many others, has been affected by supply chain disruptions due to global events such as the COVID-19 pandemic. This could lead to increased costs for SolarJuice and its competitors.

  • Competition: SolarJuice faces stiff competition in the market, which could lead to price wars, reduced margins, and loss of market share. The company competes with firms like Element Solar, Jordan Energy Alternative, Shurjo Energy, OCI Specialty, and several others​.

  • Regulatory Compliance: As a solar energy company, SolarJuice needs to comply with a variety of environmental and safety regulations. Any failure to do so could lead to fines, penalties, and a damaged reputation.

  • Technological Changes: The solar industry is characterized by rapid technological change. SolarJuice must continue to invest in research and development to keep its product offerings up to date.

Market Opportunity

The U.S. solar market installed 6.1 gigawatts-direct current (GWdc) of capacity in the first quarter of 2023, a 47% increase from Q1 2022 and a 19% decrease from Q4 2022.

This was the best first quarter in the industry’s history, led by delayed utility-scale solar projects coming online.

Each segment had a record-setting first quarter, except for community solar, which faced interconnection and siting challenges in several key state markets.

The residential segment set a first quarter record and would have likely set another overall quarterly record had it not been for intense rainstorms that hampered installation crews.

Utility-scale solar installations were up 66% compared to the first quarter of 2022. The industry is still operating in a supply-constrained environment, but conditions are improving as module shipments are finally making their way through ports​.

Competitors

  • Element Solar
  • Jordan Energy Alternative
  • Shurjo Energy
  • OCI Specialty
  • SunPower Australia
  • Origin Energy
  • Tesla Energy
  • AGL Energy
  • Enphase Energy
  • Canadian Solar
  • Yingli Solar
  • Trina Solar