Generac and CPower announced a partnership to expand distributed generation services in the PJM market, the largest electricity grid in North America.
The alliance combines Generac’s generator, battery storage, and microgrid technologies with CPower’s virtual power plant and demand‑response expertise, enabling commercial and industrial customers to participate in capacity, ancillary services, and on‑bill programs.
The partnership aligns with Generac’s 2026 outlook, which projects mid‑teens net sales growth and an adjusted EBITDA margin of 18‑19%. Generac’s Q4 2025 earnings showed a 12% year‑over‑year decline in net sales and a drop in gross profit margin to 36.3% from 40.6%, but the company highlighted the partnership as a key driver for future revenue and margin recovery.
Management emphasized the strategic fit. Erik Wilde said, "Generac's comprehensive C&I product portfolio and competitive lead times and CPower's market expertise provide customers with a unique opportunity to quickly capitalize on PJM's prices to improve their resiliency and energy savings outcomes. The ability to combine multiple asset types, such as a generator plus a battery, further optimizes economic dispatch and operational resilience." Glenn Bogarde added, "By working with CPower and Generac, C&I customers in PJM can more easily turn distributed generation assets into flexible energy assets that add value to the grid. Beyond earning demand response revenue, customers can generate on‑bill savings and reduce capacity charges by lowering electricity use when demand peaks."
The partnership leverages CPower's 6.7 GW of customer capacity across more than 23,000 sites, positioning Generac to capture capacity, energy, and ancillary services opportunities in PJM. The collaboration supports Generac's broader strategy to grow its commercial and industrial segment, particularly in data center power solutions, and to capitalize on the growing demand for distributed energy resources driven by grid constraints and AI‑driven data center expansion.
The deal is part of Generac's broader effort to expand its presence in distributed generation services, complementing its recent acquisition of Allmand and its focus on home standby markets. By integrating its hardware with CPower's software platform, Generac aims to deliver a first‑to‑market solution that enhances resiliency, reduces energy costs, and generates revenue from grid services for its customers.
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