Real Goods Solar, Inc. (NASDAQ:RGSE) stock was skyrocketing today following news of a deal with DowDuPont Inc (NYSE:DWDP).
The deal between Real Goods Solar, Inc. and Dow has to do with the latter’s solar panel efforts. DOW has been working on a new solar shingle called the Powerhouse 3.0. The shingle is designed to cost less than previous solar panels from the company and is more efficient.
Real Goods Solar, Inc.’s agreement with Dow will have it handling all the commercial activities concerning the Powerhouse 3.0 solar shingles. This includes “supply chain management, marketing, sales, installation and warranty.”
Real Goods Solar, Inc. also now holds the exclusive licenses for patents that cover the Powerhouse 3.0. This will let it market the product overseas, which may be good news for RGSE stock. The market for building integrated photovoltaic goods is expected to increase from $2.5 billion in 2016 to $4.3 billion by 2021.
Real Goods Solar, Inc. notes that it will be working to push the Powerhouse 3.0 solar shingles. This will have it expanding its call center and digital marketing program. The base and electrical connector for the singles will be made in the U.S, but the solar laminate will come form other countries to keep costs down.
Real Goods Solar, Inc. and Dow are currently waiting for the Powerhouse 3.0 shingles to receive UL product certification before they can start selling them. However, they are still taking preorders for the solar shingles. The two companies are expecting certification in the first quarter of 2018.
RGSE stock was up 220% as of Wednesday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
