SolarCity heading for expansion in Mexico with acquisition

Facebook
Twitter
LinkedIn
Reddit
Email

Updated: SolarCity the largest US residential solar installer is to acquire one of the largest commercial and industrial solar developers in Mexico, ILIOSSON, S.A. de C.V.

The deal would be SolarCity’s first steps to expand its business operations outside the US, something management at the company had not ruled out before but has provided little insight into plans or that a deal was imminent during its recent second quarter earnings call. It also signals SolarCity’s renewed focus on the commercial sector, something that has proven difficult to expand in the US in recent years. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

SolarCity said that the ILIOSS acquisition would enable the company to provide commercial and industrial customers in the country with lower electricity process than currently available. 

The company did not disclose any financial details regarding the transaction, though the deal is expected to be completed in August 2015.

However, Reuters reported later that ILIOSS had said the deal was worth US$10 million upfront. Other reports said a further US$5 million in payments based on milestones.

Upon completion of the acquisition, ILIOSS would operate as an independent business unit of SolarCity. The co-founder and Chairman of ILLIOS, David Arelle and co-founder and Chief Operating Officer Manuel Vegara were said to lead the new business unit as president and general manager, respectively.

ILLIOS had previously signed supply contracts with Hanwha Q CELLS and Schneider Electric for planned projects totalling around 250MW in 2014.

According to recent analysis by GTM Research, Mexico's annual PV market is expected to reach 2.6GW in 2020, while cumulative installations are expected t have reached 7.6GW.

In the commercial and industrial segment, GTM is guiding 2.2GW of installations in the same period and would account for around 15% of the total. 

Adam James, GTM Research Senior Solar Analyst said, “SolarCity's entry into Mexico could be a market-moving event for the country's PV sector. The C&I segment is the most scalable near-term opportunity in the country, and the introduction of a strong financing product into the market would accelerate PV growth considerably.” 

James also noted that the C&I segment experienced high electricity tariffs that were between US$0.09/kWh and US$0.17/kWh, but benefited from having stronger credit markets than in the residential space. 

“If SolarCity can offer standardized financing products, the C&I segment could see even higher growth in coming years than the aggressive scenario we outline in our Base Case. This segment also offers a much more scalable growth strategy for SolarCity than the residential market, given the tariff structure and off-taker credit profiles,” added James.

Update 2:

In an SEC filing, SolarCity said the initial purchase price was US$9.5 million and included a payment of a further US$5.0 million, subject to certain conditions. 

Key conditions were meeting an unspecified ‘battery storage deployment milestone,’ as well as unspecified ‘megawatt deployments in Mexico from the closing date through December 31, 2019.’

Read Next

August 18, 2025
The Australian government of Victoria has released an amended version of the Victorian Transmission Plan, adding 200,000 hectares of area to develop renewable energy – in addition to 230,000 hectares proposed in the first draft.
Premium
August 18, 2025
Jonathan Touriño Jacobo explores evidence of systemic problems in the Iberian grid and some of the solutions following the blackout.
August 18, 2025
Investment fund Stonepeak has launched a new Middle Eastern renewables platform headed up by a former executive at Jinko Power.
August 18, 2025
Australia’s sole PV producer Tindo Solar has launched a new range of n-type TOPCon modules aimed at rooftop applications.
August 18, 2025
US solar industry representatives have voiced concern at the US Treasury Department’s new “start of construction” rules for large projects.
August 18, 2025
Chinese module manufacturer LONGI has launched a new back-contact (BC) lightweight module for commercial and industrial (C&I) rooftop applications.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines