NRG Energy And NRG Yield Form Residential Solar Partnership - Quick Facts

(RTTNews) - NRG Energy Inc. (NRG) and NRG Yield, Inc. (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. The 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 or "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.