Extreme weather events are becoming more frequent and severe across the United States, imperiling solar generation equipment and therefore the reliability of power. Meanwhile, there’s an industry-wide push to shorten supply chains and procure (and safe harbor) as much domestic content as possible to capitalize on waning tax incentives.
California-based solar technology platform provider Nextracker sees value in a solution that addresses both concerns- about $53 million worth, to be more precise.
Nextracker has announced its expansion into the solar panel frame market with the acquisition of Origami Solar, a legitimate pioneer in roll-formed steel frame technology, in an all-cash transaction that includes future contingent earnout consideration.
Origami Solar, as you may recall from a profile penned on Factor This last February, has developed a made-in-America steel solar panel frame that promises increased durability, reduced material and manufacturing costs, and lower greenhouse gas emissions.
Most solar projects utilize aluminum frames, which are flexible, light, and relatively cheap. Steel frames offer a high-performance alternative that is stronger, cost-competitive, and taps into a robust localized supply chain. Nextracker also believes that the use of steel as a frame material has the potential to unlock innovation around new solar panel mounting approaches, including robotic assembly, with related improvements in mounting speed and labor cost.
“Solar panel frame technology has been relatively unchanged for over 45 years,” noticed Dan Shugar, founder and CEO of Nextracker and former keynote speaker at DTECH’s interconnection-focused event. “During that time, the size and dynamic wind loads on solar panels have increased dramatically, especially in utility-scale tracking applications. From a structural engineering perspective, the shift from aluminum to steel is compelling — steel offers greater strength at competitive cost and significantly reduced carbon intensity. Most importantly, it helps to unlock opportunities for localized manufacturing from steel coil through final fabrication, while delivering real customer benefits like faster panel installation and improved long-term system performance. And with an estimated total addressable market (TAM) in excess of $750 million in the U.S. alone, we see this as a substantial new business opportunity for Nextracker.”
Nextracker has actively expanded its platform and offerings of solar solutions over the last two years. Earlier in September, Nextracker announced the launch of its proprietary NX PowerMerge trunk connector, a next-generation DC power component designed to streamline electrical balance of systems (eBOS) installation and boost long-term reliability. The innovative solution marks the first product introduction to the Nextracker eBOS portfolio since its acquisition of Bentek earlier this year. Last June, Nextracker acquired Ojjo, a U.S.-based renewable energy company specializing in foundation technology and services used in utility-scale ground-mount applications for solar power generation, in an all-cash transaction worth approximately $119 million.
The Deal with Steel Frames
Origami’s frame designs have been under development and refinement for four years, including extensive third-party laboratory testing. Engineered as a drop-in replacement for conventional aluminum frames, Origami asserts that its frames mirror standard industry form factors, allowing seamless integration into existing manufacturing lines and helping to facilitate broad and rapid adoption of steel frame technology.
Gregg Patterson, CEO of Origami Solar, says the steel frames have been tested and qualified by leading panel manufacturers, and with U.S.-based fabrication capacity in place, Nextracker is well-positioned to support rapid scaling.
“Origami Solar was founded to drive the commercialization of steel frame technology and to realize the customer value and benefits this new technology can offer,” shared Patterson. “Our team has solved key challenges around design, performance, and high-volume production. By joining forces with Nextracker, we have a great opportunity to scale this innovation faster with their global supply chain ecosystem and deep customer relationships and to commercialize a solution that makes a real impact.”
Last June, Origami Solar announced the finalization of an all-American supply chain involving three premier steel fabricators, promising fulfillment by the first quarter of 2025. The deals were with Wesler Profile of Valley City, Ohio, Priefert of Mt. Pleasant, Texas, and Unimacts of Houston, Texas.
Between 2010 and 2017, 18 of the 23 aluminum smelters in the United States shut down production, increasing reliance on foreign supply. Domestic aluminum production has improved over the last few years, but the U.S. still takes in more than it makes, importing about 4.8 million metric tons of aluminum in 2023, mostly from Canada. China and Russia are two of the top three aluminum-producing nations; China itself controls nearly 60% of the world’s market.
“There is simply no reason for the solar industry to accept the enormous risk that comes with imported aluminum frames,” stated Patterson when the deals with domestic fabricators was announced. “They should not have to accept shipping issues, labor strife, or impoundments delaying the arrival of the frames they need. They should not have to accept the possibility that geopolitical tensions could shut off the frame supply entirely. They should not have to accept the risk of ever-increasing tariffs or that weaker aluminum frames would fail to support ever-larger solar panels. Now, the solar industry can avoid that risk entirely.”
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