In order to help unlock new business opportunities and generate a steady revenue stream, Generac Holdings Inc. GNRC intends to diversify its business model from being solely ‘‘equipment centric’’ to a systems and services provider with emphasis on improving end-user experience and lowering utility costs. At the same time, the company is actively pursuing potential acquisition opportunities to monetize an ecosystem of devices that relate to energy use, storage, generation, control, and optimization to further strengthen its leading market position. Recently, Generac inked an agreement to acquire Tank Utility Inc. for an undisclosed amount to augment its propane-powered portfolio.


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Tank Utility uses real-time tank level measurements from IoT monitors and innovative business intelligence software to optimize propane fuel logistics and helps fuel operators to augment customer experience through greater transparency. This Boston-based firm’s solutions improve fuel efficiency and reduce emission levels with sophisticated remote monitoring capabilities for propane tanks, leveraging easy-to-use 4G LTE devices and industry-leading software and analytics.

Generac has long been associated with Tank Utility as a minority investor. The acquisition will enable generator and fuel dealers to better address the coronavirus-induced demand surge for various power products in residential locations as a back-up facility to support off-grid power needs and to protect from grid instability. The buyout will empower Generac to offer an integrated portfolio of propane-powered backup generators, battery storage, and home energy management solutions along with Tank Utility’s monitoring and analytics services. This, in turn, will expand Generac’s connectivity functionality and services with remote monitoring capabilities and enable homeowners to better adapt to the evolving energy ecosystem.

In July this year, Generac forayed into the microinverter market with the acquisition of Chilicon Power, LLC for an undisclosed amount. Based in Pacific Palisades, CA, Chilicon designs and manufactures grid-interactive inverter systems and monitoring solutions and reportedly builds the world’s highest efficiency 60-cell module inverter. Its highly scalable technology offers simple yet powerful and robust microinverter solutions that boast key intelligence to power residential or business operations from AC coupling to battery storage and generators with the push of a button. In particular, its power inversion and monitoring system technology maximizes PV system production, lowers installation cost and promotes end-user satisfaction.

The acquisition expands Generac’s solar and storage product offerings as significant changes in the energy landscape, drastic climate change, aging power infrastructure, and the deployment of superfast 5G technology spur secular growth opportunities. The company aims to capitalize on these key growth drivers by generating more sales through higher market penetration and continued focus on research and development. A diversified distribution channel further ensures that the products reach a broad global customer base. Notably, the company has the largest network of factory direct independent generator dealers in the industry in North America.

Such opportune acquisitions will likely help Generac to strengthen its competitive position in the market to better compete with rivals like Schneider Electric SE SBGSY, Cummins Inc. CMI, and Terex Corporation TEX.

With more than six decades of industry experience and technology knowhow, Generac is one of the leading manufacturers of home backup generators, offering the widest range of power products in the marketplace for diversified end users. Moreover, the company intends to leverage its experience and core competencies to strengthen its position in the emerging residential energy storage and monitoring markets.

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