Good Energy, the 100% renewable electricity supplier and power provider, has hit the acquisition trail again, snapping up another specialist solar firm.
Chippenham-headquartered Good Energy has completed a number of takeovers in recent years to broaden its offering away from just power generation and supply.
These included Wessex EcoEnergy, an established solar installation business which it bought last June for £2.5m in June.
Now it has bought Maidstone, Kent-based JPS Renewable Energy, a specialist solar and storage installation and distribution business, and its wholly owned subsidiary Trust Solar Wholesale, a standalone distribution and procurement business.
Good Energy, which also has a 49.9% shareholding in Zap-Map, the Bristol-based leading electric vehicle mapping service, is paying a maximum of £13.75m for the JPS group, with up to £6.75m of that deferred for up to two years and subject to performance.
The JPS group made a £600,000 pre-tax profit on revenue of £12.2m in the year ended 30 April and is on track to increase these in its current financial year to £1.3m and £19.6m respectively, said Good Energy.
It said the acquisition would strengthen its service offering and accelerate its energy services growth strategy in targeting higher margin, growth markets with lower working capital requirements.
Good Energy is targeting an equal weighting of energy services and energy supply earnings by next year.
The firm is also raising around £2.1m through a share placing, which it said would preserve its existing cash resources for working capital needs while retaining flexibility to continue to pursue organic and inorganic growth opportunities.
Good Energy chief executive Nigel Pocklington described the JPS Group acquisition as an exciting next step in the firm's growth strategy, further solidifying its position “as the UK's go-to solar specialist”.
He added: “Solar is experiencing a boom in the UK and its role in decarbonising our energy system is absolutely crucial.
“Installations are back at the peak we saw during the introduction of the Feed-in-Tariff – another period in which Good Energy was a key player, leading to our position as the largest voluntary administrator of the scheme today with over 180,000 solar generator customers.”
The solar installation market was worth £1.9bn last year, with installations growing 38% on already strong growth in 2022.
This was most pronounced in the South East, the region with the fastest rate of domestic installations in the country.
Mr Pocklington added: “The JPS Group has carved a position as a leading installer across the region, serving as the solar specialist in the South East of the UK for larger homes and properties with more complex requirements.
“It is growing at a significant rate to help supply a specific market that is demanding premium clean energy products and services, which Good Energy is well positioned to provide as a premium, trusted and truly green energy supplier.
"Having integrated our previous acquisitions we are already marketing solar, storage and heat pumps alongside supply as everything you need for a greener home or business.
“Integrating JPS Group under the Good Energy brand will help to grow and consolidate Good Energy's market share, affirm us as solar and storage experts, while also providing the opportunity for Good Energy to introduce its wider product suite to a new customer base.”
