NRG Energy, Inc. (NYSE: NRG) and Enel North America, Inc., a subsidiary of Enel Green Power, the renewable power company of Enel S.p.A., have closed an agreement for the sale of NRG’s land based wind development company, Padoma Wind Power LLC (“Padoma”), to Enel North America (ENA).

Based in La Jolla, California, Padoma is developing about 4,000 megawatts (MW) of potential projects in California which, once built, will help the state meet its Renewable Portfolio Standard target of 33% of retail sales from eligible renewable energy resources by 2020. Enel North America will retain the entire Padoma development team and the current Padoma development pipeline in California and Texas (“The Padoma Projects”). NRG is maintaining its existing ownership interest in its three Texas wind farms—Sherbino, Elbow Creek and Langford—totaling almost 350 MW of electricity.

The two companies also reached a more general co-investment agreement. NRG will retain a Right of First Offer should ENA seek an equity partner in The Padoma Projects. In addition to that, ENA and NRG will evaluate joint venture opportunities in wind as well as other renewable energy projects in North America.

“Padoma’s current pipeline in California and the experience of its development team will further strengthen our position in the United States and provide us with solid opportunities to grow in attractive markets in the future,” said Francesco Starace, President of Enel Green Power. “Padoma adds depth to our North American development capabilities and provides key geographical diversification to our wind pipeline.”

“Enel’s experience and resources will enable Padoma to realize the full benefits of its development potential, increasing the pipeline of renewable investment opportunities for NRG’s consideration,” said David Crane, President and CEO, NRG Energy, Inc. “Padoma had considerable success developing terrestrial wind projects under NRG’s ownership and we look forward to working with Padoma and Enel and investing in their projects in the future. NRG believes in the value of strong and strategic partnerships such as this one and together, we hope to speed the deployment of new, cleaner power generation projects to meet growing energy demand and respond to future state and federal renewable energy requirements.”

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“My electric bill was skyrocketing,” he says. “I really needed to get a handle on what was going out, versus what was coming in.”

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Mr. Gelber’s solution was to purchase a solar-power generator for his home, with rooftop photovoltaic panels. He says that while concern about the environment played a role in his decision to go solar, economics convinced him to take the plunge.

“I’m in support of anything that will address global warming and our power consumption,” the 65-year-old Mr. Gelber says. “That’s very important to me. But I think that’s secondary to the economics of it. It’s going to pay for itself in eight to 10 years, and essentially I have free electricity for the rest of my life.”

As electricity prices rise and government incentives and technology improvements make renewable-power systems more affordable, a growing number of people are embracing self-generation. And while as much as 85% of the demand for home solar-power generation is in California — the state with the most generous financial incentives — the market is growing in other states, including New Jersey and New York, and could take off nationwide if more states implement favorable rules and funding, advocates say.

“This market wouldn’t be happening without these government incentives,” says Lisa Frantzis, managing director of renewable and distributed energy at Navigant Consulting, an independent consulting firm in Burlington, Mass. “There’s a convergence with prices coming down, concern about climate change, volatility in the power market and people concerned about energy security.”

California Takes Lead

By far, the most widely used home renewable-power systems are rooftop solar panels that absorb the sun’s rays and convert them into electricity.

In California, people who install their own solar power or other renewable generators can get rebates of as much as $2.50 per watt of electricity produced. Residential customers of San Francisco-based PG&E Corp. utility Pacific Gas & Electric Co., who install an average-size system of about 4,600 watts, can expect to obtain a rebate of at least $10,000, utility spokesman Keely Wachs says. California’s rebates are based on the electricity output of the solar generator. The highest-performing, most efficient system would qualify for the full $2.50-per-watt rebate, whereas systems on roofs that have heavy shade, or smaller surface areas, for example, would qualify for a lower rebate amount, such as $2.20, $1.90, $1.55 or less per watt, Mr. Wachs says…

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