RGS Energy announces that it has entered into an agreement to design, install, and operate of a 2.6 MW ground-mount solar system near Auburn, Massachusetts. The Town of Auburn will purchase 100% of the power generated by the system, saving the town more than $3 million over the next 20 years.
Back in February, solar provider RGS Energy (Nasdaq:RSOL) and solar project investor and manager Altus Power America Management announced that they had formed a new joint venture, RGS Energy Asset Management LLC. The purpose of the joint venture, they said, was to develop, finance, and manage up to $150 million of commercial solar projects.
RGS Energy Asset Management is expected to provide a range of new services to RGS Energy’s customers, from power purchase agreements and credit qualification to attractive capital sourcing and long-term asset management.
This week, RGS Energy announced that it has entered into an agreement for the first project financed by RGS Energy Asset Management. Under the agreement, RGS Energy will design, install, and operate of a 2.6 MW ground-mount solar system near Auburn, Massachusetts, with construction beginning this summer.
The Town of Auburn will purchase 100% of the power generated by the system. The installation is expected to total more than 3 million kilowatt-hours annually and reduce the town’s electricity costs by more than $3 million over the next 20 years. With this move, Auburn is joining the many municipalities around the country that are finding they can save money by going solar.
The system is also expected to eliminate more than 9.7 million pounds of CO2 emissions, the equivalent of taking more than 9,000 gas-powered cars off the road.
“We are very excited to have completed negotiations and executed this agreement with RGS Energy,” said Auburn town Manager, Julie Jacobson. “The fact that they are a one stop shop for project development, finance and program administration gave the Town confidence that RGS Energy could implement the project as proposed. When the project becomes operational the Town will be purchasing domestically produced, renewable electricity that has a predictable cost structure for the next 20 to 30 years. These factors will create significant savings and move Auburn in a more sustainable direction. We look forward to a mutually beneficial relationship with RGS Energy.”
“This transaction marks a new era for RGS Energy,” said Kam Mofid, RGS Energy’s CEO. “We can now provide a full range of financial and management services to supplement our traditional solar project engineering procurement and construction offerings. With these fully integrated capabilities, we’re now more competitive as well as able to participate in asset management and generate related recurring revenue.”