NRG Energy to Sell Solar Directly to Consumers in Colorado

NRG Energy Inc. will sell solar power directly to consumers in Colorado as part of a push into renewable energy. NRG, the nation’s largest independent power producer, will join with SunShare LLC to build five so-called community solar projects in Denver and Colorado Springs, the companies said Wednesday. Under this model, anyone can get power from the sun even if they don’t have a good roof for panels. “These types of programs, whether with homeowners, commercial businesses or municipalities, allow us to democratize participation in renewable power consumption,” NRG Senior Vice President Craig Cornelius said in a phone interview. Colorado, which has one of the nation’s most aggressive renewable energy standards, was the first state to allow private developers to create community solar gardens in 2010. Unlike other large solar installations, which usually provide power to utilities, community projects sell directly to consumers who get a credit on their bills. The number of these types of solar farms has increased 64 percent since 2013, according to a Sept. 2014 report by the Solar Electric Power Association. NRG’s expansion into solar comes as its conventional fossil-fuel power business faces declining demand growth. Some consumers are opting for technologies that allow them to produce their own electricity. Solar-generated electricity has become increasingly attractive to customers as the price of panels have plunged by nearly two-thirds since 2011. ‘Untapped Opportunity’ With 75 percent of U.S. homeowners unable to install panels on their rooftops, community solar represents a “largely untapped opportunity,” said Cory Honeyman, an analyst with GTM Research. Utilities in 21 states now offer community solar programs, according to GTM. The Colorado installations will provide 8.2 megawatts of power, enough for 1,600 homes, and are expected to be operating by the middle of the year, NRG said. Customers, mostly businesses and municipalities, will sign a 20-year agreement to get electricity from the ground-mounted panels. NRG is providing the financing and will be the majority owner while SunShare will manage the customer contracts, the companies said. The projects could be dropped down into NRG Yield, a separately-traded unit that holds renewable-power plants, Cornelius said. NRG, based in Princeton, New Jersey, plans to bring these types of projects to other states, including Minnesota and Massachusetts, Cornelius said.