NRG and NRG Yield Establish New Residential Solar Partnership
April 13 2015 - 7:30AM
Business Wire
NRG Yield to Invest up to $150MM Into
Residential Solar Portfolios Developed by NRG Home Solar;
Partnership Allows NRG to More Quickly Monetize Residential
Leases
NRG Energy, Inc. (NYSE:NRG) and NRG Yield, Inc. (NYSE:NYLD) have
formed a partnership that will invest in and hold operating
portfolios of residential solar assets developed by NRG Home Solar,
a subsidiary of NRG. This partnership will hold interests in an
unlevered and tax equity financed residential solar portfolio. As
part of the agreement, NRG will periodically monetize its
residential leases through NRG Yield’s upfront equity investment
and still retain a residual economic interest in the portfolio,
while also providing NRG Yield with additional cash available for
distribution (“CAFD”). NRG Yield has committed to invest up to $150
million of cash equity into the partnership over time.
The partnership initially invested in two portfolios of leases
owned or developed by NRG Home Solar, including:
- An existing, unlevered portfolio of
over 2,200 leases across 9 states representing approximately 17 MW
with a weighted average remaining term of approximately 17
years.
- An in-development, tax equity financed
portfolio of between 6,000-7,000 leases across at least 10 states
representing approximately 48 MW with a lease term of 20
years.
The partnership is expected to be fully invested within 12
months of this announcement date and, when fully utilized, is
expected to include over 15,000 leases representing approximately
65 MW. NRG Yield expects its investment in the partnership to
generate an average unlevered CAFD yield of approximately 7.5% over
the contracted life of these investments. This partnership should
also allow NRG to realize a significantly accelerated return of
capital invested in NRG Home Solar.
“With the completion of this partnership between the companies,
we initiate a new phase in the growth strategy of the NRG Home
business unit and NRG Yield,” said David Crane, Chief Executive
Officer of NRG and NRG Yield’s Chairman and Chief Executive
Officer. “This strategic financial partnership, coupled with the
growing strength of NRG Home’s residential solar platform, provides
us even more confidence in our strategy and growth targets both for
the residential solar business and for the NRG Yield portfolio at
large.”
About NRG
NRG is leading a customer-driven change in the U.S. energy
industry by delivering cleaner and smarter energy choices, while
building on the strength of the nation’s largest and most diverse
competitive power portfolio. A Fortune 250 company, we create value
through reliable and efficient conventional generation while
driving innovation in solar and renewable power, electric vehicle
ecosystems, carbon capture technology and customer-centric energy
solutions. Our retail electricity providers serve almost 3 million
residential and commercial customers throughout the country. More
information is available at www.nrg.com. Connect with NRG Energy on
Facebook and follow us on Twitter @nrgenergy.
About NRG Yield
NRG Yield owns a diversified portfolio of contracted renewable
and conventional generation and thermal infrastructure assets in
the U.S., including fossil fuel, solar and wind power generation
facilities that provide the capacity to support more than 1.8
million American homes and businesses. Our thermal infrastructure
assets provide steam, hot water and/or chilled water, and in some
instances electricity, to commercial businesses, universities,
hospitals and governmental units in multiple locations. NRG Yield
is traded on the New York Stock Exchange under the symbol NYLD.
Visit nrgyield.com for more information.
Safe Harbor Disclosure
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 with respect to NRG and
NRG Yield. Such forward-looking statements are subject to certain
risks, uncertainties and assumptions and include the NRG and NRG
Yield’s future growth and financial performance, and typically can
be identified by the use of words such as “expect,” “estimate,”
“anticipate,” “forecast,” “plan,” “believe” and similar terms.
Although NRG and NRG Yield believe that their expectations are
reasonable, they can give no assurance that these expectations will
prove to have been correct, and actual results may vary materially.
Factors that could cause actual results to differ materially from
those contemplated above include, among others, general economic
conditions, hazards customary in the power industry, weather
conditions, competition in wholesale power markets, the volatility
of energy and fuel prices, failure of customers to perform under
contracts, changes in the wholesale power markets, changes in
government regulation, the condition of capital markets generally,
our ability to access capital markets, unanticipated outages at
their generation facilities, adverse results in current and future
litigation, failure to identify or successfully execute
acquisitions, their ability to enter into new contracts as existing
contracts expire, NRG Yield’s ability to acquire assets from NRG
Energy, Inc. or third parties, their ability to close the drop-down
transactions, and their ability to maintain and grow our quarterly
dividends.
NRG and NRG Yield undertake no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. The foregoing review of
factors that could cause NRG’s or NRG Yield’s actual results to
differ materially from those contemplated in the forward-looking
statements included in this news release should be considered in
connection with information regarding risks and uncertainties that
may affect NRG or NRG Yield’s future results included in NRG’s and
NRG Yield’s filings with the Securities and Exchange Commission at
www.sec.gov. In addition, NRG and NRG Yield makes available free of
charge at www.nrg.com and www.nrgyield.com, respectively, copies of
materials they file with, or furnish to, the SEC.
NRG Energy, Inc.Media:Dave Knox,
832-357-5730orInvestors:Matt Orendorff, 609-524-4526Lindsey
Puchyr, 609-524-4527
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