Altus Power America, Inc. announced the signing of a long-term solar Net Metering Credit Purchase Agreement with the Town of East Longmeadow, Massachusetts. The 20-year contract will help East Longmeadow save on a large portion of its electricity usage and reduce its carbon footprint. East Longmeadow is expected to save up to $125,000 annually with an estimated saving of $2.5 million over the duration of the 20-year term.
The net metering credits will be generated from a solar photovoltaic system being constructed in Hampden, Massachusetts – a town adjacent to East Longmeadow. Altus Power will fund, own and operate the system, which is designed to be 4.3 MW in size and is expected to produce 5,600,000 kWh per year. Construction of the system commenced in September of this year and is scheduled to be completed by the first quarter of 2015.
The solar market in Massachusetts continues to grow as a result of the revamped net metering program enacted by state government. Net metering allows municipalities (such as cities, towns, and various other public entities) and private customers (such as privately owned companies) to purchase net metering credits generated from solar photovoltaic systems located in the same region. Municipalities and private customers are issued the credits at a discount but are able to use them to pay their electricity bill at full value, creating savings which can be significant.
The solar photovoltaic system adds another Massachusetts asset to Altus Power America’s growing solar portfolio. Lars Norell, Managing Partner of Altus Power America, said, “The public-private partnership model is well suited to solar power investments and we are pleased to enter into this Net Metering Credit Purchase Agreement with East Longmeadow and bring them in as a long-term partner on this solar project.” This Net Metering Credit Purchase Agreement marks the first to be fully executed by Altus Power America, Inc., though the firm is in discussions with several other public and private institutions regarding additional net metering credits available from its solar photovoltaic systems.
About Altus Power America, Inc.
Altus Power America, Inc. is a Greenwich, CT-based company funded in part by GSO/Blackstone that invests in, owns and manages clean energy projects. Its principals draw on their deep expertise in finance, construction, engineering and design to provide renewable energy savings and solar solutions to commercial and public sector clients.