Summary of Shoals Technologies Group (SHLS) Update / Briefing Company Overview - Shoals Technologies Group specializes in electrical balance of system (eBOS) solutions for the solar energy market, particularly focusing on battery energy storage systems (BESS) [6][7] - The company is diversifying its offerings beyond utility-scale solar, investing in new growth opportunities including OEM, commercial and industrial (C&I), international markets, and BESS [7] Industry Insights - The BESS market is a critical component of renewable energy, providing energy storage using rechargeable batteries [9] - Key battery technologies include lithium-ion and lithium iron phosphate, which dominate the market [10] - The BESS market is expected to grow at an annual rate of nearly 30% over the next ten years, increasing from approximately 24 gigawatts to over 200 gigawatts by 2034 [12] - The market value is projected to exceed $100 billion by 2034, with significant growth in long-duration energy storage technologies [13] Product Offerings - Shoals does not sell batteries but focuses on interconnection solutions between batteries and inverters, including combiners, recombiners, and multi-load break disconnect switches [14][15] - Products are designed for high efficiency in DC coupled applications, which consolidate and distribute DC power from battery containers [18] - The company emphasizes high-quality, custom-engineered solutions that are integral to solar plus storage and standalone storage systems [17] Customer Base - Shoals serves a diverse customer base including EPCs, integrators, OEMs, and data centers, with a focus on solar plus storage projects [20] - Long-standing relationships with customers in the solar space provide a competitive advantage, allowing the company to introduce its new eBOS solutions [24] Competitive Advantages - The company highlights its innovative product offerings, customizable solutions, and ongoing investment in product development as key differentiators in the market [22][24] - Shoals is scaling operations with a new mega plant of over 630,000 square feet dedicated to BESS production [23] Market Strategy - The company aims to educate design engineers, EPCs, and contractors about its solutions to penetrate the market further [31] - Shoals intends to cast a wide net in its marketing strategy, focusing on various customer segments rather than just a few large names [30] Additional Insights - The BESS market is essential for managing intermittent renewable energy sources, ensuring grid reliability, and supporting peak power demand [11] - The company is positioned to meet the growing energy demands driven by sectors such as AI and data centers [11]

Core Viewpoint - Shoals Technologies Group, Inc. has signed a Memorandum of Understanding (MOU) with UGT Renewables to collaborate on up to 12 gigawatts (GW) of solar projects, aiming to enhance energy transition efforts in emerging markets [1][2]. Group 1: Collaboration Details - The collaboration focuses on innovative electrical balance of system (EBOS) solutions to support sustainable development in emerging markets [1][2]. - UGT Renewables has a pipeline of 12 GW of solar projects, and the partnership aims to deliver efficient EBOS solutions that require less skilled labor, thus facilitating low-cost electrification [2][3]. Group 2: Project Impact - The initial projects in Angola, with a combined capacity of 600 megawatts (MW), are expected to electrify 60% of the Angolan population and provide clean water to over 1.1 million people [3]. - These projects are financed by the EXIM Bank in the United States and are set to break ground in 2025 [3]. Group 3: Company Background - Shoals Technologies Group is recognized as a leader in the renewable energy industry, providing innovative EBOS solutions that enhance installation efficiency and system performance [4]. - UGT Renewables and its sister company, Sun Africa, are major players in international renewable energy generation and energy storage, with extensive projects under development globally [5].