The acquisition will mark RGS Energy’s entry into the Hawaiian energy market, which has the highest electricity rates in the US.
As per the deal, RGS will pay $7m in cash and $9m in unregistered Class A common stock, in addition to $3m potential earn-out payments.
RGS Energy CEO Kam Mofid said the transaction brings to the company one of Hawaii’s largest and most respected solar companies.
"Sunetric possesses a healthy balance between commercial and residential solar projects, plus a strong government portfolio with experience in all branches of the military," added Mofid.
Subject to certain customary closing conditions, the transaction is expected to be wrapped up in the second quarter of 2014.
Oahu-based Sunetric has installed around 3,500 solar projects, totaling 65MW, in Hawaii, since its inception in 2004.
