Polar Power Receives Trial Order for 50 Propane-Fueled DC Generators from Major Southeast Asian Telecom Operator

Overview of the order

Polar Power announced it has received a trial order for 50 propane-fueled DC generators from a major Tier 1 telecom operator in Southeast Asia intended to power off-grid and bad-grid cell sites. The company describes the trial as the initial phase of a potential five-year deployment program that could cover approximately 2,500 of the customer's sites and notes that discussions have begun on a next phase of 200 propane generators. The customer has not committed to broader deployment. The company states that, if the broader program proceeds and based on current estimated system pricing, the opportunity could represent up to approximately $60 million in revenue over five years.

Sources: S1

Product and expected benefits

Polar describes its DC generator as combining Supra system controls, a high-efficiency permanent magnet alternator, and Toyota 1KS prime power engines. The company states the system uses approximately 40% less fuel than diesel AC generator solutions without solar and reports higher savings when paired with solar. Polar also reports longer oil change intervals and reduced scheduled maintenance compared with standard diesel AC gensets, and says these factors lower total site OPEX for off-grid and bad-grid installations.

Sources: S1

Supply readiness and inventory

Polar reports it has purchased approximately 2,000 Toyota 1KS engines to support potential volume growth and says the large inventory should facilitate more rapid delivery into emerging markets. The company disclosed it previously wrote down approximately $4 million of usable engine inventory and expects that using this inventory may support improved margins as volumes ramp.

Sources: S1

Commercial and economic context

Polar states its DC Generator ranges from $19,000 to $27,000 each depending on accessories and service options. The release includes field-derived operating examples for fuel and maintenance savings and references regional tower counts from an industry guide to situate the opportunity.

Sources: S1

About the company

Polar Power, Inc. (NASDAQ: POLA) designs, manufactures and sells direct-current power generators, renewable energy systems and other power solutions for telecommunications and other markets. The company is headquartered in Gardena, California.

Sources: S1

What remains uncertain

• The customer has not committed to broader deployment beyond the 50-unit trial; statements about a five-year program, site counts, and potential revenue are forward-looking and contingent on customer decisions and other factors.
• Fuel savings, maintenance intervals, and economic examples are presented by the company based on field experience and observations and have not been independently verified in this release.
• The company previously wrote down approximately $4 million of usable engine inventory; how that prior write-down and current inventory affect future margins depends on future deployments and is uncertain.