Solar technology costs down, but Akeena suffers in Credit Crunch

April 29, 2010

Californian solar installer Akeena Solar, Inc., said today that the credit crunch is continuing to hit the commercial solar market, as it unveiled a 15% decline in sales compared to this time last year.

The company, which is listed on the NASDAQ and known for its Andalay AC solar panels, said it made $6.5 million in sales compared to $7.6 million in the first quarter of 2009.

Profits were $1.5 million in the three months, compared to $2.3 million in the same period last year.

Andalay AC panels have been leading the industry towards lower installation costs” - Barry Cinnamon, Akeena Solar

Posting its first quarter results up to March 31, 2010, the company said the loss of its non-California installations also hit its sales, suggesting that without that factor the firm would have made a 4% rise in revenue.

On the plus side, the company said it had a “strong bookings momentum”, with its order books swelling by $2 million to $11.4 million at the end of the quarter.

And, in good news for the consumer, the average selling price for Akeena’s solar installations in the quarter has reduced, from $8 per watt a year ago to $6.52 per watt in this quarter.

Gary Effren, president of Akeena Solar, said: “Based on progress in our distribution business and the momentum in residential bookings, we remain confident with our target of EBITDAS breakeven at an $18 million revenue level in the fourth quarter.”

Installations

Akeena, which has its head office in Los Gatos as well as six more offices across California, installed 878-kilowatts of solar capacity in the first three months of 2010, compared to 945kW in the first quarter of 2009.

But, under a new business strategy launched last year, and with an expanded network of dealers in 27 states and Canada, including a stronger relationship with retail giant Lowe’s (see this BrighterEnergy.org story), the company revealed some optimism as the credit situation improves.

The company expressed confidence in its Andalay solar panels, which are designed to have their panels, mounting system and inverters all built into a single unit.

“Andalay AC panels have been leading the industry towards lower installation costs, improved reliability, better performance and superior safety,” said Barry Cinnamon, Akeena CEO.

“All of these factors are driving adoption and facilitating our efforts to open new distribution channels. As costs decline and credit eases, the technology underlying the Andalay brand helps consumers make the decision that rooftop solar is a cost effective and reliable solution for their energy needs.”