LOUISVILLE, Colo., April 23, 2014 (GLOBE NEWSWIRE) -- RGS Energy (Nasdaq: RGSE ), a nationwide leader of turnkey solar energy solutions for residential, commercial, and utility customers, has entered into an agreement to develop a project that includes the design, installation and operation of a 2.6 megawatt (MW) 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 (per EPA-based data).
"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.
About RGS Energy
RGS Energy (Nasdaq: RGSE ) is one of the nation's pioneering solar energy companies serving commercial, residential, and utility customers. Beginning with one of the very first photovoltaic panels sold to the public in the U.S. in 1978, the company has installed more than 19,000 solar power systems representing well over 170 megawatts of 100% clean renewable energy. RGS Energy makes it very convenient for customers to save on their energy bill by providing a comprehensive solar solution, from design, financing, permitting and installation to ongoing monitoring, maintenance and support.
As one of the nation's largest and most experienced solar power players, the company has 17 offices across the West and the Northeast. For more information, visit RGSEnergy.com, on Facebook at www.facebook.com/rgsenergy and on Twitter at www.twitter.com/rgsenergy . RGS Energy is a trade name and RGS Energy makes filings with the Securities and Exchange Commission under its official name "Real Goods Solar, Inc."
Cautionary Statement Regarding Forward-Looking Statements
This communication includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as "expect," "intend," "believe," "will," "should" or comparable terminology or by discussions of strategy. While RGS Energy believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, failure to finance or complete construction of the solar energy project described above, introduction of new products and services, completion and integration of acquisitions, possibility of negative economic conditions and other risks and uncertainties included in RGS Energy's filings with the Securities and Exchange Commission. RGS Energy assumes no duty to update any forward-looking statements.
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