Verengo Solar has announced it plans to sell its more than 20,000 installed systems to retail energy giant Crius Energy as part of its bankruptcy proceedings.
On September 23, Verengo – formerly the No. 3 residential solar installer in California – filed for Chapter 11 bankruptcy protection after defaulting on a bank loan. The planned sale to Crius Energy was also announced at the time. The deal is reported to be worth $11.9 million, with an immediate infusion of $2.25 million to pay off a portion of Verengos debt.
The bankruptcy came as something of surprise to some industry insiders, who are still feeling the effects of SunEdisons bankruptcy earlier this year. But signs of a potential fall were evident in 2014, when Zach Shahan at CleanTechnica reported that the company, despite its leadership position, was seeking buyers for its assets.
Crius Energy LLC is an independent energy retailer, providing electricity, natural gas and solar products to over 900,000 residential and commercial customers across the United States. The acquisition of Verengo marks a significant investment in solar assets for the company.
Verengo says the acquisition will not affect current customers, but will allow it to focus on its key mission of expanding its market share in California and provides a platform for the company to expand its reach nationwide, something the company has struggled to do on its own.
If Crius follows its own historical precedent, it will keep the Verengo Solar brand separate from its other holdings and promote it as another Crius Energy brand.