Centrica’s North American subsidiary, Direct Energy, announced Tuesday that it’s entering the expanding U.S. residential solar market by acquiring Astrum Solar, an installer, for $54 million.
Maryland-based Astrum Solar has installed solar arrays on about 4,000 homes in the Northeast and California, allowing customers to either buy or lease their systems. Founded in 2008, it made Inc. Magazine‘s “500 Fastest Growing Companies” list in 2013.
“We are excited at the potential of the Astrum Solar business in a rapidly growing market and we are delighted to be adding solar power to the range of energy options we already offer our customers,” Direct Energy president Badar Khan said in announcing the deal.
Centrica’s stock held steady Tuesday at the equivalent of $534 per share in trading on the London Stock Exchange.
The U.S. residential solar market, after a huge boom at the end of 2013, has settled into steadier growth this year. Its number of installations rose 38% in 2014’s first quarter compared to the same period a year ago, according to a report by the Solar Energy Industries Association. California remains the bedrock of the home market, accounting for more than 55% of U.S. installations.
The SEIA said this year’s first three months marked the first quarter in recent history in which residential installations exceeded commercial ones. “While this is partially due to the rough winter slowing construction activity in the commercial-heavy Northeast, it is also emblematic of an ongoing trend in rooftop solar,” the report said, adding: “The residential market has been slowly, steadily gaining steam.”
Competition is intensifying as the dominant U.S. installer, Solar City, expands into manufacturing. In June, the company announced it plans to acquire solar panel maker Silevo and build panel factories. Its largest shareholder is entrepreneur Elon Musk, who founded Tesla Motors.