In September, Arizona-based The Consciousness Group FHLD (“TAG”) turned a totally SEC-reporting, publicly traded firm by means of a reverse merger with Freedom Holdings, Inc. The deal made TAG a wholly-owned working subsidiary of Freedom. With management of the general public entity, TAG is transferring ahead with an attention-grabbing development technique to construct a number one enterprise focusing on each business and residential photo voltaic initiatives throughout the various power sector.
The TAG GRID
TAG competes within the solar energy section of the choice power trade and studies it’s creating an thrilling mannequin throughout the house. It does this by means of The TAG GRID – an ecosystem that allows its third-party members, that are photo voltaic trade service suppliers, together with photo voltaic undertaking gross sales and lead era organizations, brokers and photo voltaic set up contractors (engineering, procurement and building corporations, or EPCs), to take a undertaking from conception to completion. TAG then oversees all or elements of the gross sales, engineering, procurement, building and financing features which might be key to bringing photo voltaic initiatives to life.
A serious trade evaluation is that particular person firms are solely pretty much as good as their subsequent lead. By working with a whole lot of service suppliers, TAG says it considerably reduces this threat. The corporate additionally says that this offers a seamless expertise for TAG GRID members and their clients, declaring that this mannequin leads to larger satisfaction for service suppliers and finish customers.
TAG Monetary, the corporate’s finance unit, has two divisions that function a key a part of the TAG GRID. TAG Monetary Companies, or TFS, helps and manages the method for gross sales and lead gen organizations and EPCs, from a undertaking’s conception to the signing of the contract. The corporate’s fintech permits a seamless course of for these organizations to entry TAG’s undertaking funding options – both TAG’s proprietary underwritten lending merchandise or third-party lending merchandise.
TAG Capital serves because the fund administration arm for TAG Monetary. This group companies or securitizes TAG’s underwritten lending portfolios and monetizes funding tax credit (ITCs). The corporate says this helps to maximise the worth of its mortgage portfolios and funding tax credit.
TAG has additionally acquired 5 firms throughout the choice power house. These acquisitions plug into the TAG GRID and serve to each improve income development alternatives for the corporate and allow TAG to ensure initiatives in case a TAG GRID member is unable to finish a undertaking.
One TAG Innovation Seeks To Shake Up Undertaking Financing
Whereas attending the current RE+ 24 tradeshow, one of many nation’s largest renewable power conventions, TAG introduced its new Residential Nationwide Photo voltaic Energy Buy Settlement (PPA) program.
PPAs are contracts the place a third-party developer installs, owns and operates a photo voltaic system on a property. The property proprietor then buys the electrical energy that the system generates. Value and phrases are set by the PPA. Historically, the property proprietor’s creditworthiness could be a significant factor within the contract’s financing phrases.
TAG seeks to make such financing preparations simpler. Its pre-paid PPA program just isn’t pushed by minimal FICO credit score scores and earnings necessities. The corporate believes this program might disrupt the renewables market by breaking down one of many conventional limitations to financing. TAG says it is going to enable extra clients to embrace renewable power. At this time, the PPA is obtainable in 28 states plus Washington D.C., the place PPAs are authorized and TAG expects to imminently introduce one other proprietary product that can allow it to develop to all 50 states.
This system is designed to spice up contractor undertaking profitability and supply owners with fast electrical energy utility price financial savings.
In response to Pablo Diaz, CEO and founding father of TAG, the corporate is offering “TAG GRID members with unique entry to cutting-edge lending and financing instruments, accelerating renewable power adoption” and that its “proprietary non-credit score-driven pre-paid PPAs, make clear power initiatives extra accessible than ever earlier than.”
Photo voltaic Vitality Is A Quickly Rising Element Of The Renewable Vitality Market
TAG notes that the home photo voltaic market exceeds $320 billion. Solar energy era can be anticipated to stay one of many main elements of the renewable power market.
The U.S. Vitality Info Administration expects “photo voltaic and wind to guide development of U.S. energy era for the following two years.” It notes that “photo voltaic is the fastest-growing renewable supply” of electrical energy era.
Analysis agency Mordor Intelligence estimates that the residential photo voltaic power market will exceed 190 gigawatts by 2029. A gigawatt equals a billion watts of power. CNET says that is sufficient to energy about 750,000 properties for a yr.
Mordor presently estimates the residential market to be about 139 gigawatts. It credit “elements comparable to favorable authorities insurance policies, rising investments in upcoming rooftop photo voltaic initiatives, and the diminished price of photo voltaic power…to drive the market” between now and 2029.
TAG’s enterprise mannequin additionally seems to be a key differentiator within the trade, which is populated by many opponents, few of whom appear to have built-in the varied elements the best way TAG has.
For instance, Synergy Photo voltaic, a big contractor within the business photo voltaic sector, is generally focused on set up. Firms like SunPower SPWRQ and Sunrun RUN design and set up residential photo voltaic programs, however do not supply the end-to-end ecosystem TAG has created. Whereas powerhouse Tesla TSLA gives design and set up of each residential and business programs, it’s extra centered on storage than any of the revenue-generators TAG is constructing.
TAG Focuses On The Future
The acquisition of Southwest Monetary Companies, from which TFS was created, was meant to revolutionize financing choices for TAG GRID members. It marries conventional monetary experience with next-generation fintech. For instance, TAG says it’s the first out there to supply financing to non-contractors.
And acquisitions are a key a part of the corporate’s development technique. The TAG crew helps acquired firms deal with strategic development and operational planning to drive future success. TAG’s M&A method identifies belongings or firms it believes can improve the TAG GRID or present distinctive applied sciences.
An instance of that is the corporate’s crypto and blockchain incentive applications. It plans to introduce a program the place clients can earn specialised cash for the power their photo voltaic programs produce. Through the use of blockchain know-how, TAG expects to allow the homeowners of photo voltaic programs and TAG GRID members to promote power to different customers. It believes this may carry every of them higher returns on their programs.
Featured photograph by Sebastian Ganso on Pixabay.
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