April 23, 2014 – RGS Energy has entered into an agreement to develop a project that includes the design, installation and operation of a 2.6MW ground-mount solar system near Auburn, Massachusetts.
The Town of Auburn has agreed to purchase 100% of the power generated by the system, which is expected to total more than 3 million kilowatt hours annually and reduce the town's cost of electricity by more than $3 million over the next 20 years. By harnessing the power of the sun, the system is also expected to eliminate more than 9.7 million pounds of utility carbon dioxide 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."
The contract win represents the first project financed by RGS Energy Asset Management, the commercial finance joint venture formed by RGS Energy and Altus Power America Management as announced in February. With up to $150 million of potential project financing available through Altus Power America Management, 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 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."
RGS Energy plans to begin construction of the new system this summer.