Real Goods Solar
| Company type | Public (formerly) |
|---|---|
| Industry | Solar energy, Renewable energy, Retail |
| Founded | 1978 |
| Founder | John Schaeffer |
| Defunct | January 31, 2020 |
| Fate | Filed for Chapter 7 bankruptcy |
| Headquarters | Louisville , United States |
Area served | United States (all 50 states), Canada (10 provinces) |
Key people | John Schaeffer (founder) |
| Products | Residential solar energy integration, sustainable lifestyle products |
| Parent | Gaiam Inc. (formerly majority owner) |
Real Goods Solar Inc. was a publicly listed company specializing in residential solar energy integration, operating under the name RGS Energy. Established in 1978, it initially functioned as a retailer of sustainable lifestyle products and was among the pioneers in offering retail solar panels within the United States. Before declaring Chapter 7 bankruptcy in January 2020, the company provided services throughout all 50 U.S. states and 10 provinces in Canada.
Founding and Early Development
In 1977, John Schaeffer, an entrepreneur aged 29 living off the grid in Mendocino County, California, invested $3,000 of his savings along with a $5,000 loan from his father to acquire a half-interest in Open Circle, an alternative energy shop located in Willits, California. Together with Steve Troy, they rebranded the business as Real Goods Trading Company.
Real Goods became one of the earliest commercial retailers of solar panels in the U.S., initially purchasing 100 units of 9-Watt panels at $600 each and reselling them for $900 apiece. This initial success facilitated expansion with additional outlets opening in Ukiah in 1980 and Santa Rosa in 1982. That same year, Real Goods published The Alternative Energy Source Book, authored by Troy to advocate for sustainable living.
By 1985, annual revenues had reached $3 million; however, inconsistent growth prompted the closure of all three retail locations. Troy left to concentrate on Jade Mountain and subsequently Gaiam Energy Tech, which was later acquired and became Real Goods Solar. Meanwhile, Schaeffer revitalized the enterprise by initiating a mail-order catalog from his garage, utilizing a mailing list of approximately 2,000 customers to reestablish market presence.
Expansion During the 1990s
Throughout the 1990s, Real Goods advanced its mission by promoting solar energy benefits amid heightened public interest following Earth Day’s 20th anniversary and the onset of the Persian Gulf War in 1990. That year marked the launch of the Billion Pound Goal campaign aimed at preventing one billion pounds of carbon dioxide emissions by the year 2000—a target met ahead of schedule in 1997.
In 1991, Real Goods conducted its inaugural direct public stock offering, raising $1 million from its customer base. The following year saw the establishment of National Off-The-Grid Day, which evolved into the National Tour of Solar Homes to demonstrate solar-powered lifestyles. A second stock offering occurred in 1993; proceeds financed construction commencement for the Solar Living Center (SLC) in Hopland, California in 1994. That same year also introduced Real Goods’ online sales platform. In 1998, founder John Schaeffer founded the Solar Living Institute (SLI), a nonprofit organization devoted to sustainable living education that manages the SLC and conducts workshops.
Collaboration with Gaiam and Formation of Real Goods Solar
In the early 2000s, Real Goods experienced substantial growth with five physical retail locations throughout California and expanded catalog and e-commerce operations generating $19 million annually.
The company merged with sustainable lifestyle firm Gaiam Inc. () in 2001 through an $8.7 million stock exchange deal whereby Real Goods shareholders received one Class A GAIA share for every ten shares held. Post-merger, Gaiam consolidated order fulfillment and distribution centers in Cincinnati while relocating accounting functions to Broomfield, Colorado; a new supply chain management system was also implemented.
With increased funding and Gaiam’s backing, Real Goods pursued residential solar installation growth initiatives. Headquartered in Colorado but retaining California operations, it launched residential solar installation divisions in both states during 2002 to capitalize on federal and state tax incentives. By 2004, the company had broadened its offerings to include commercial solar installations, further diversifying its renewable energy portfolio.
Initial public offering
In 2008, Real Goods embarked on an ambitious growth strategy by separating its mail order segment from Gaiam, relaunching the Real Goods website as an independent e-commerce platform, expanding its solar business, and launching a public offering. On May 8, 2008, the company completed its initial public offering under the name Real Goods Solar, successfully raising $55 million. Subsequently, the company began trading on the NASDAQ stock exchange with the ticker symbol RSOL. Despite going public, Gaiam maintained control by owning all of Real Goods’ Class B shares.
Solar installation expansion
From 2007 through 2008, Real Goods expanded significantly by acquiring four solar installation firms based in California, establishing itself as one of the leading installers nationwide. In November 2007, it purchased Marin Solar for $3.2 million in a combination of cash and stock. This was followed by acquisitions of Carlson Solar in January 2008 for $3.2 million, Independent Energy Systems in August 2008 for $3.6 million, and Regrid Power in October 2008 for $3.8 million. The acquisition of Marin Solar notably strengthened Real Goods’ capabilities in commercial solar projects, positioning the company as a key contender within that sector.
Merger with Alteris Renewables
On June 22, 2011, Real Goods Solar announced its plan to merge with Earth Friendly Energy Group Holdings, LLC (operating as Alteris Renewables), a renewable energy installer headquartered in Connecticut. The merger was finalized on December 20, 2011, with the combined entity continuing under the Real Goods Solar name and NASDAQ ticker RSOL, while maintaining its headquarters in Louisville, Colorado. Shareholders of Alteris received 8.7 million shares of Real Goods Solar Class A common stock in exchange for full ownership.
This merger broadened Real Goods Solar’s national reach by uniting its established Western market presence with Alteris’ operations in the Northeast—two regions experiencing rapid solar industry growth. Together, both companies contributed over three decades of collective experience to the newly merged organization.
RGS Energy filed for bankruptcy protection on January 31, 2020.
Real Goods Solar division
RGS Energy ceased operations following its bankruptcy filing on January 31, 2020. Customers were left without maintenance support referrals, and some encountered collection actions related to disputed claims or contractual disagreements that were poorly managed by the company.
Real Goods retail division
In 2014, founder John Schaeffer reacquired the Hopland retail location along with the Real Goods Retail Division (operating as Real Goods Trading Corporation) from RGSE to continue running it as a privately held business.
Solar Living Center
Located in Hopland, California, the Solar Living Center (SLC) serves as home to both the Solar Living Institute and the Real Goods Store. The center’s 5,000-square-foot strawbale structure incorporates passive solar architectural principles and is set amid 12 acres of permaculture gardens designed to represent various U.S. climate zones.
Company headquarters
In 2008, following Gaiam’s majority ownership stake, Real Goods moved its corporate headquarters to Louisville, Colorado.