Embattled solar energy company RGS Energy has announced that it will withdraw from the large-scale commercial market focus on smaller, residential-level ventures.
The decision was made in order to “provide greater financial resources” for its residential and Sunetric business divisions.
Dennis Lacey, CEO of RGS, said: “As we believe our best opportunity for improved future financial performance rests with our Residential and Sunetric business segments, we have made the strategic decision to exit the large commercial business segment. This decision will have a positive impact upon our future cash from operations as well as improving the company's profit margin. We are taking actions to monetize the value of this business segment. We will complete our existing large commercial construction contracts in progress in the ordinary course of business in the coming months.
Lacey added: “Although we will no longer be pursuing large solar commercial projects, we will continue in our Residential and Sunetric business segments to operate in the small commercial solar customer segment, generally under 200kW in size. For instance, oftentimes our Residential solar customers own a small business and we also provide solar solutions for their business facilities. We believe the small commercial segment is an opportunity for future profitable growth.”