FOSRICH Group has spun off its solar operations into a wholly owned subsidiary as the business emerges as one of the company’s largest revenue drivers, accounting for an estimated more than $1 billion a year in sales, underscoring solar’s growing importance to the group’s medium-term strategy.

The new entity, Middlesex Solar Energy (MSE), will operate as a standalone company responsible for the design, financing and installation of solar systems in Jamaica and across the Caribbean, Managing Director Cecil Foster told Jamaica Observer in an interview this week.

Solar currently represents about 35 per cent of FosRich’s total revenues, according to Foster. Using FosRich’s reported $3.68 billion in revenue for the 2024 financial year, this implies solar-related sales of roughly $1.3 billion, making it one of the company’s single largest business lines.

Recent financials suggest that scale has been maintained but not yet accelerated. For the nine months ended September 2025, FosRich reported revenues of $2.42 billion, implying solar revenues of approximately $845 million for the period, broadly in line with a full-year run rate of about $1.1–$1.2 billion.

Foster said the scale of the solar business, combined with rising demand, made it impractical to continue operating it as a department within FosRich.

“We have been inundated in recent months with requests for solar energy,” he told BusinessWeek, adding that a standalone structure would allow the business to pursue dedicated project financing, offer structured payment options such as hire-purchase arrangements, and develop a clearer growth strategy.

Management disclosures point to a key challenge underpinning the restructuring. In its latest filings, FosRich said that while sales volumes of solar products and installations increased, overall revenue growth was constrained by a sharp fall in global solar panel prices, with cost reductions largely passed on to customers.

The spin-off comes against the backdrop of persistently high electricity costs. Foster said large commercial and industrial customers are facing electricity tariffs of up to 40 US cents per kilowatt hour, prompting many to shift toward renewable energy to stabilise operating costs.

FosRich’s own operations illustrate the strategy. The company has installed solar systems at its manufacturing plants in Kingston and Clarendon, as well as at retail locations in Kingston, Montego Bay and Mandeville, which management says has helped stabilise energy costs and improve predictability, even if near-term profit gains remain modest.

MSE will operate as a vertically integrated solar provider. FosRich has trained approximately 90 certified solar installers across all parishes and maintains partnerships with global manufacturers including Huawei, Jinko Solar, JA Solar, and energy storage supplier Fox ESS.

Beyond domestic demand, Foster pointed to rising interest from the Jamaican diaspora, particularly property owners seeking predictable energy bills and the ability to monitor electricity usage remotely.

The company’s longer-term outlook remains supportive. In its 2024 annual report, FosRich said renewable energy products are expected to become one of its major revenue earners over the medium term, aligned with Jamaica’s national target of generating 50 per cent of energy from renewables by 2030.

Looking ahead, Foster said the company expects the solar business to expand rapidly.

“In terms of revenues, whatever we did last year, we are looking to triple that this year,” he said, while noting that execution will hinge on securing external funding, scaling financing-led offerings and winning larger commercial and regional contracts.

Foster described the goal of building MSE into a multi-billion-dollar company as a medium-term ambition, with a possible public listing under consideration, rather than an immediate outcome, as the subsidiary builds scale and funding capacity.

The subsidiary was formed within the past six months and is scheduled to be formally unveiled in January.