Something magical is happening in the Land of Enchantment. Albuquerque, New Mexico-based Array Technologies Inc. surpassed all expectations in their IPO, raising $1.05 billion dollars and increasing the price of their extended shares by 66%. This offering proved to be one of the largest in the history of the clean energy sector and by far the largest in the state of New Mexico. Trading under the stock symbol ARRY, the US Securities and Stock Exchange (SEC) valued the company at $4.7 billion by the afternoon of its IPO.
With many businesses, cities, and countries pledging to become carbon neutral, it’s no wonder that people are snapping up vital renewable energy technology. Where better to develop solar technology than in the desert? “In New Mexico, we’ve tried for years to create an environment where technology companies could be conceived, created, and at some point go public,” Sherman McCorkle, chairman of the Sandia Science and Technology Park, told Albuquerque Journal. “This is a huge success, not just for Array, but for the state in general. New Mexico should celebrate this achievement.”
Array Technologies Inc. is the second-largest producer of solar array tracking technology in the world. Like a young sunflower following the sun, Array Technologies’ installations allow solar panels to follow the arc of the sun across the sky maximizing the amount of solar energy captured every day. Although the upfront cost of an installation is slightly higher than a “fixed-tilt” mount, the panels pay for themselves in no time. “Roughly 70 percent of new utility-scale solar projects in the U.S. now come with a tracker, compared to just 30 percent of projects around the world,” according to Green Tech Media. “The overall value of the global tracker market will grow 45 percent over the next five years, even as system costs come down.”
Large energy companies like BP Solar, the same utility company behind the Bighorn Solar Project, announced a 1.4 GigaWatt (GW) global purchase agreement with Array Technologies following last year’s $100 million 1.5 GW purchase agreement across the US. “As we continue to grow and progress our 16GW development pipeline, executing global procurement deals with world-class suppliers like Array Technologies enables us to leverage the efficiencies of our scale,” Nick Boyle, Group CEO for Lightsource bp, said in a press release. “This approach further optimizes our projects and translates into competitively priced electricity for our customers. Our agreement with Array Technologies demonstrates the quality of partnerships Lightsource bp invests in.”
After 30 years of developing their products, Array is just hitting their stride on the global stock market. As one of the largest US-based solar technology manufacturers, Array employs 230 people and works with other American companies to reduce the cost of installation, labor, and repair. Most recently, Array announced a new single bolt, photovoltaic (PV) module clamp that they developed in collaboration with First Solar, another American solar manufacturer. With solar energy booming across the US, more businesses and corporations will be looking to maximize the efficiency and efficacy of their solar installations with technologies like this.
The IPO comes at an exciting time for the company, which is poised to develop its business both in the United States and in the underdeveloped International Solar Market. “As we continue to scale and grow with the overall market, we’re at a point now where having access to capital will…allow us to invest in our technologies [and] pay down debt,” Jim Fusaro, Array CEO, told Green Tech Media in the above interview. “A permanent source of capital, which will allow us to enable the growth and the value that we bring to our customers. And in many ways, it serves as an attraction to talent.”
While this is a historic moment for the clean energy industry, this is also a massive boost to New Mexico’s economy. “Array is a New Mexico success story,” Ryan Centerwall, CEO of Affordable Solar, New Mexico’s largest installation company told Albuquerque Journal in the above interview. “That company was created here and grew over the years from very humble roots. It’s great news for the state, and for the solar industry in general.”