RGS Energy decides to exit loss-making mainland residential solar business

US solar installer RGS Energy (OTCMKTS:RGSE) announced on Friday that it intends to exit its unprofitable mainland residential solar business to focus on the market for its Powerhouse in-roof solar shingles.

The planned move will cut the company’s overall cash outflow in a drive to maximise future shareholder value, RGS Energy said in a statement, noting that the mainland residential solar operations recorded a preliminary net loss of about USD 5.5 million (EUR 4.9m) for the 12 months through December 2018.

“We will retain two facets of our legacy solar EPC business that do not require material use of our cash, including our small commercial business where our pipeline has grown considerably as well as our Hawaii-based subsidiary Sunetric that has been growing sales,” said CEO Dennis Lacey.

Colorado-based RGS Energy is the exclusive worldwide manufacturer of the solar shingles that use technology developed by The Dow Chemical Company. It believes that there is a substantial opportunity for the Powerhouse in light of California’s mandate that all new homes built in 2020 include a solar system.

The firm has requested an extension of time to file its Annual Report on Form 10-K, which is now expected to be filed before April 15, 2019.

(USD 1.0 = EUR 0.890)

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