August 22, 2024
Small Streetlight Firm Wins Major Contract With Top Homebuilder
Startup wins nice contract, but their self-proclaimed leadership is up for debate
Tampa-based Streetleaf, a relatively unknown player in the solar streetlighting market, has secured a significant contract with D.R. Horton, the largest homebuilder in the United States. This partnership, according to Streetleaf, will see Streetleaf providing solar-powered streetlights for new communities developed by D.R. Horton across the country. The agreement marks a major win for Streetleaf, which, despite its modest size and recent entry into the market, has claimed to be a leader in the industry.
D.R. Horton, which generated $35.5 billion in revenue in 2023 and closed on 82,917 units, has long dominated the U.S. homebuilding market. The decision to integrate solar-powered streetlights from Streetleaf into their developments appears to be a cost-saving measure and reflects the growing trend toward sustainable practices in new construction.
D.R. Horton’s Strategic Move, HOA’s Future Responsibilities
Since these new neighborhoods are often built on previously undeveloped land, using solar streetlights eliminates the need for costly underground electrical streetlight infrastructure. This allows D.R. Horton to either pass some savings on to homebuyers while enhancing profitability, making the homes more competitive in the market.
However, this strategic advantage also presents a challenge for future homeowners' associations (HOAs). Once a certain percentage of homes in these neighborhoods are sold, D.R. Horton typically transfers maintenance responsibilities to the HOA, including the upkeep of the solar streetlights, which will eventually require battery or solar cell replacements. While this arrangement benefits D.R. Horton by reducing upfront construction costs, it shifts the long-term maintenance responsibility to the community. Future streetlight options will be limited to off-grid solutions, as there will likely be no existing streetlight power infrastructure in the neighborhood.
Streetleaf’s Market Position: Claims vs. Reality
Streetleaf, which, according to the Tampa Bay Times, installed its first streetlight in 2019, now claims to have installed over 7,300 streetlights across more than 100 projects in the U.S. In July 2023, the company reported having installed over 4,500 solar streetlights across the country. This pace suggests an average installation rate of 55-60 streetlights per week.
Photo: Streetleaf
Despite these modest numbers, the company's self-proclaimed title as "the leading provider of solar-powered streetlight services in the United States" may be an overstatement. Additionally, its claim of being "the most trusted solar-powered streetlights in the U.S." could be viewed with skepticism given the relatively low volume of installations.
Furthermore, when trying to find information related to light output options, product dimensions, CCT options, BUG ratings, photometric performance, distribution types, efficacy, etc., we were unable to locate any product specification sheets on the Streetleaf website. We were also unable to locate any product warranty information.
According to the Tampa Bay Times, Streetleaf employs just 15 people, with at least half of its installations concentrated in the Tampa Bay region, particularly in Pasco County and eastern Hillsborough County. While the company has made strides, its claims of leadership in the industry might not fully align with the realities of its market presence and operational scale.
Moving ahead
Landing contracts with big home builders has always been a big win for lighting manufacturers whether it be downlight makers, bathroom vanity brands, foyer pendants and so on. It remains to be seen whether D.R. Horton will roll out solar streetlights in all neighborhoods it builds or just certain ones that meet specific criteria. Either way, this is a win for Streetleaf who may be on their way to becoming among the leaders in this category, but will need to develop a larger following outside of western Florida before they can honestly claim that stance.
