NRG Energy, Inc.
) continues to pursue solar energy-focused initiatives. NRG
Residential Solar Solutions, a subsidiary of NRG Energy, announced
that it has constructed a community solar array ("CSA") in Rutland,
VT, under its Vermont Community Solar Project.
NRG Energy will sell the output from the 150-kilowatt (KW) solar
farm to 50 customers of Green Mountain Power Corporation ("GMP"),
who signed for the project.
Colchester, VT-based GMP generates, transmits, distributes and
sells electricity to over 250,000 customers in Vermont.
The project will create a win-win situation for all the parties
associated with it, including the customers, NRG Energy and GMP.
The customers will not be entitled for any upfront costs related to
the aforesaid project. In addition, NRG Energy will provide solar
panels installation services as well as other infrastructure needs.
The customers will also enjoy a credit on the GMP bills for the
power generated from the CSA.
We believe the aforesaid positives will encourage other customers
to empanel themselves with the project, thereby improving NRG
Energy's performance going forward. NRG Energy plans to start a
second project in Rutland, which will enable the company to provide
reliable services to customers besides meeting the rising utility
demand. These initiatives will help NRG Energy to fulfill
government mandates for power generation through the renewable
GMP is also benefited from the project in terms of achieving the
state of Vermont's renewable energy goal. GMP plans to work
together with NRG Energy to construct more solar operations in
It is evident from past records that NRG Energy is currently
focusing more on the expansion of renewable properties. The
company's recent acquisitions of the assets of Edison Mission
Energy, a subsidiary of
), and Roof Diagnostics Solar will support its renewable asset
On May 7, 2014, NRG Energy and Unilever United States, Inc., a unit
), announced that they will form a strategic partnership. The
agreement will enable Unilever to utilize 100% clean energy for its
energy requirements at its U.S. sites by 2020.
We believe that addition of renewable assets besides inking
long-term power supply contracts will enable NRG Energy to secure
stable cash inflows going forward.
NRG Energy currently has a Zacks Rank #1 (Strong Buy). Another
stock looking equally good in the utilities industry is
American Electric Power Co., Inc.
), carrying the same rank as NRG Energy.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
AMER ELEC PWR (AEP): Free Stock Analysis Report
EDISON INTL (EIX): Free Stock Analysis Report
NRG ENERGY INC (NRG): Free Stock Analysis
UNILEVER PLC (UL): Free Stock Analysis Report
To read this article on Zacks.com click here.