Generac Power Systems acquires PowerPlay from SunGrid Solutions to enhance energy storage capabilities

Generac Power Systems, a leading global provider of energy technology solutions and power products, has expanded its capabilities in the energy storage sector with the acquisition of PowerPlay Battery Energy Storage Systems, a division of SunGrid Solutions Inc. This strategic acquisition, finalized on June 26, 2024, marks a significant move for Generac in strengthening its portfolio in the commercial and industrial (C&I) energy storage market. PowerPlay specializes in turnkey Battery Energy Storage Systems (BESS) tailored for projects up to 7 MWh, catering to a variety of C&I applications.

Battery Energy Storage Systems are crucial for enabling energy storage and subsequent use, which is becoming increasingly important due to various factors. These include the rise of distributed solar power, the growing electrification of C&I facilities, fluctuating utility rates, and the potential instability of central grids caused by weather, blackouts, or inadequate infrastructure. BESS systems are particularly essential for C&I enterprises such as retail stores, restaurants, office buildings, manufacturing facilities, and healthcare facilities, where they provide resilience, efficiency, and sustainability in on-site distributed energy systems.

With this acquisition, the PowerPlay business will maintain its operations in Cambridge, Canada, and will function as a dedicated research and development hub for Generac’s C&I BESS solutions. Meanwhile, SunGrid Solutions will continue to operate its energy storage EPC (Engineering, Procurement, and Construction) services throughout the United States and Canada, focusing on larger-scale projects ranging from 10 MWh to 1 GWh.

The integration of PowerPlay into Generac’s portfolio not only enhances Generac’s ability to offer comprehensive energy solutions but also strengthens its position in the market by expanding its range of energy storage solutions tailored for commercial and industrial clients.

The terms of the deal were not disclosed, but the acquisition is expected to provide significant strategic benefits to Generac, including enhanced product offerings and an expanded customer base in the rapidly growing energy storage sector.