Eguana Technologies Inc. has been unable to reach agreement with Sonnenbatterie GmbH on extending the supply of Bi-Direx power control systems. This follows an announcement earlier this week from Sonnenbatterie that it has successfully completed another round of financing. The undisclosed amount by the new investor INVEN CAPITAL further supports the dynamic growth of the German power storage system specialist. Sonnenbatterie has doubled its sales every year since its founding in 2010. It is one of the leading manufacturers in the energy storage industry with approximately 8,000 sold storage systems. Currently, the company has offices in seven countries and will present its US products to the local market in July. Expansion into new markets will continue in 2016.
Eguana will begin to wind down Bi-Direx deliveries to Sonnenbatterie over the balance of the Quarter and will focus its resources on the US market where there is rapidly growing demand for its residential AC Battery launched last month. The two companies have agreed to continue discussions related to prior commitments that have been made.
"While we were aware of competitive concerns with respect to the introduction of our AC Battery, we are disappointed with the outcome of negotiations, but wish Sonnenbatterie well," said Michael Carten CEO of Eguana. "We continue to believe that our power control and conversion technology is best in class for energy storage applications with the most volume shipped to date, the best conversion efficiencies and the most flexible open controls."
"Sonnenbatterie consistently focuses on growth. A rapid pace of innovation and investment into new technologies is just as necessary as the further internationalization of our markets," said Sonnenbatterie CEO Christoph Ostermann earlier this week. "We are very pleased to have a partner like INVEN CAPITAL at our side who is not only supporting our course in Europe and in the US but also recognizes the immense importance of renewable energy."
Eguana commented, market response to the residential AC Battery in the United States has been strong since being launched last month. The AC Battery was also exhibited earlier this month at Intersolar North America, receiving positive feedback from each of the Company's targeted channels.
"Eguana remains the most experienced player in power controls for energy storage systems with the most units in the field," added Mr Carten. "Our power control platform is well seasoned and highly reliable. Since September 2014, we have shipped more than 2,000 Bi-Direx units with less than a 1/4 of 1% return rate."
The transition to selling the higher value AC Battery in the US will result in reduced shipments in the near term until US deliveries begin to ramp later this year. Revenues per unit, as well as margin contributions on the AC Battery sales, will be materially higher compared to sales of Bi-Direx units. The product transition will drive a need for additional working capital by the end of this Quarter, and the Company had already been engaged with potential debt lenders to meet these requirements.
