NRG Energy, is ending its NRG Home Solar subsidy as it has operated. However, the new Jersey-based energy company’s residential solar company will live on under newly announced partnerships with Sunrun and Spruce Financial.
NRG has embraced renewable energy wholeheartedly over recent years. It’s built and purchased some of the world’s biggest solar projects and has many large wind projects. It even opened up a home solar installation business. But perhaps it went in too many directions at once and as a result its short-term profits were down and former CEO David Crane stepped down last December.
This week the company announced in its first quarter results that it was concluding its GreenCo business and restructuring how it works with renewable energy. This includes its NRG Home Solar business.
“Combining renewable and fossil generation with an industry-leading retail platform, along with our robust partnership with NRG Yield, provides strength and stability while allowing us to maintain upside to a market recovery. Today, we are also pleased to announce the conclusion of the GreenCo process with the agreement to sell a majority share of EVgo and the restructuring and simplification of the residential solar business,” said Mauricio Gutierrez, NRG CEO, in its investor meeting.
The company’s President of NRG Retail and Reliant Elizabeth Killinger, explained the changed to the rooftop solar business in a blog post. “For the past two years, NRG Home Solar was involved in every part of the residential solar chain—from sales and rooftop installation to lease financing, customer care and more,” she said. Under the agreements with Sunrun Inc. and Spruce Finance Inc., “both parties will be able to purchase NRG originated residential solar contracts and provide support over the life of the customer contract,” she explained.
“This new approach will help us achieve both short and long-term efficiencies and allow us to effectively remain in the residential solar business in a way that makes economic sense for us and will enable our customers to look to us as the energy provider for their whole home, regardless of the way the power is generated,” Killinger elaborated. At this point the company will focus on New Jersey, New York and Massachusetts where it has been strongest.
Killinger also reassured existing NRG Home Solar customers that they won’t see a change. “They still connect with their monthly solar lease the way they always have,” she said.Tweet