RGS Energy has signed a “definitive agreement” to acquire Hawaii-based solar developer and installer Sunetric, a move it says provides entry into a robust PV market.
RGS Energy says the $16m deal – expected to close next quarter – includes $7m in cash and $9m in unregistered Class A common stock, along with an additional $3m in potential earn-out payments.
An earn-out is a contractual provision stating that the seller of a business is to obtain additional future compensation based on it achieving certain agreed financial goals.
RGS Energy is a nationwide provider of turnkey solar energy solutions for residential, commercial, and utility customers.
Based in Oahu, Sunetric has installed more than 3,500 solar projects in Hawaii representing more than 65MW of installations. Revenue in 2013 was $38m.
RGS Energy notes that electricity rates in Hawaii are three times the national average and provide “very compelling economics” for homeowners and businesses to adopt solar PV systems. Solar system penetration there is higher than in any US state.
“As a result, Hawaii leads the industry in important areas such as grid integration and is key to the evolution of solar combined with energy storage,” says RGS Energy chief executive Kam Mofid.