RGS Energy announces it plans to acquire Elemental Energy, LLC, a full-service solar energy firm operating under the Sunetric brand. Sunetric is one Hawaii’s largest and most established solar companies and has installed more than 3,500 solar projects in the state.
The solar acquisitions continue!
Earlier this week, RGS Energy (Nasdaq:RGSE), a provider of turnkey solar energy solutions for residential, commercial, and utility customers, posted losses for last year. But the company remained positive about its accomplishments, including two acquisitions, and its future outlook. Today, RGS Energy announced today that it has signed a definitive agreement to acquire Elemental Energy, LLC, a full-service solar energy firm operating under the Sunetric brand.
Based in Oahu, Hawaii, Sunetric is one of the state’s largest and most established local solar developers and installers. So acquiring the company provides RGS Energy with rapid entry into a major market. Hawaii has the highest electricity rates in the U.S., three times higher than the national average. That’s led to rapid solar adoption among both homeowners and businesses.
Since its formation in 2004, Sunetric has installed more than 3,500 solar projects in Hawaii, representing over 65 MW of installations. Sunetric maintains an extensive backlog and pipeline of commercial and residential projects, with revenue topping $38 million in 2013.
RGS Energy has agreed to pay $16 million to acquire Sunetric: $7 million in cash and $9 million in unregistered Class A common stock, along with an additional $3 million in potential earn-out payments. The transaction is expected to close in the second quarter.
Sunetric will maintain its current management team and the well-established Sunetric brand as a wholly owned division of RGS Energy. Sunetric brings more than 90 employees to RGS Energy, including some of the most experienced residential and commercial sales and installation teams in Hawaii.
“This transaction brings to RGS Energy one of Hawaii’s largest and most respected solar companies,” said Kam Mofid, CEO of RGS Energy. “Sunetric possesses a healthy balance between commercial and residential solar projects, plus a strong government portfolio with experience in all branches of the military. They add to our already substantial national footprint, while allowing rapid expansion into new markets with unparalleled solar economics.”
Alex Tiller, CEO of Sunetric, commented: “Sunetric’s years of industry experience in originating, designing and installing solar systems of varying complexity and size for commercial, residential and utility-scale customers throughout all the islands is highly complementary to RGS Energy. We’re looking forward to applying the resources that RGS Energy provides in order to increase our project development capabilities and financing options for our customers.”