The public markets' enthusiasm for solar industry companies is moving down the food chain, from wafer makers to photovoltaic technology specialists and now to the players that install solar equipment. Real Goods Solar Inc., which designs, installs, monitors and maintains solar energy systems, filed on Thursday to raise up to $58 million in an IPO.

The company, which claims to be the top installer of residential solar energy systems in the U.S., is a wholly owned subsidiary of Gaiam Inc., an environmental lifestyles company that acquired Real Goods in 2000. The unit reported net revenue of $18.9 million in 2007, an increase of 12.6% over the previous year. It posted gross profits of $6.5 million last year, compared with $6 million in 2006.

The offering will be underwritten by ThinkEquity Partners LLC, Canaccord Adams and Broadpoint.

Real Goods said it would use $19.8 million of the offering's proceeds to repay its parent company for several acquisitions it has struck, including the purchase of Carlson Solar for $3.2 million last month and a $3.4 million deal for Marin Solar in November. Proceeds will also be used for additional acquisitions that could consolidate the highly fragmented solar installation industry. - Olaf de Senerpont Domis

See Real Goods' Feb. 7 S-1 from SEC.gov
See Real Goods profile from Renaissance Capital's IPOhome