NRG Energy, Inc.’s (NRG) wholly owned subsidiary, NRG Home Solar, announced that it has expanded its footprint in California. The company will open two new offices in Merced and San Diego. NRG Home Solar already has offices in Emeryville and San Francisco.
NRG Home Solar – a unit of NRG Home – engages in the installation of solar panels in residential and commercial locations across the U.S. Its operations are spread across Arizona, California, Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, New York, Texas and Vermont.
Besides providing solar solutions and leasing options, NRG Home Solar will also offer solar loan assistance to its customers. The company will extend financial aid to its customers who desire to own solar photovoltaic (PV) rooftop technology at their homes but cannot afford the upfront cost. Lately, solar leases have heated up the residential solar market in the U.S.
Princeton, NJ-headquartered NRG Energy has been routing its expansion strategies primarily through the development of its solar business. NRG Energy had earlier acquired Roof Diagnostics Solar, a residential solar company, which then became NRG Home Solar. This strategic acquisition helped NRG to expand its residential solar business and complemented its network of existing solar installers and dealers.
On Oct 2, 2014, NRG Energy acquired Pure Energies Group, Inc., an online solar sales company and a leader in the residential solar industry. The acquisition was in sync with NRG Energy’s efforts to strengthen its NRG Home Solar business.
Apart from widening its operations in California, NRG Home Solar is fast expanding into other states. Earlier this year the company announced launching its residential solar operations in Connecticut, which would create 75 new jobs in the region and allow homeowners to lock-in cheaper energy costs.
NRG Energy’s tactical expansion of its solar business will help the company to achieve regulatory compliance. A firm base in the growing residential or distributed solar business will also be accretive to its earnings.
The Energy Information Administration (EIA) expects power production from renewable sources to grow 1.8% in 2014 in the U.S. EIA also expects utility-scale solar capacity to nearly double between 2013 and 2015 and two-thirds of this capacity expansion to be built in California.
Zacks Rank
NRG Energy currently has a Zacks Rank #3 (Hold). However, better-ranked stocks in the utility space include Black Hills Corp. (BKH), IdaCorp, Inc. (IDA) and PG&E Corp. (PCG). All these stocks sport a Zacks Rank #1 (Strong Buy).
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