The water-energy nexus comes home to roost in California.
NRG
Home is adding water management technology to its solar offering for
one of its target markets, California, which faces new water regulations
as the state withers in its fourth year of drought. As California
finalizes its mandatory cuts in water use for an average of 25 percent
for urban water suppliers, new NRG solar customers in Fresno and San
Diego can receive a smart sprinkler from Rachio.
Existing NRG
solar customers in the state can also receive the smart sprinkler at
market price as part of a distribution agreement. Fresno will likely
have to cut its water use by 28 percent; San Diego is expected to face a
16 percent cut. “This is not going to solve the water crisis in
California,” said Steve McBee, CEO of NRG Home, “but it’s a way to get
started and get something into the hands of our customers now.”
The
bundle is an example of a larger push by energy retailers and solar
providers, which often now think of themselves as energy services
providers, to bring more holistic offerings to residential customers.
(NRG Home includes the conglomerate's solar business and energy retail
business.) NRG is the first solar provider, however, to bring a water
bundle to market for drought-impacted areas.
For homes that want
to go a step further in slashing water use, NRG will offer rebates for
turf replacement starting in May in those two cities. The details of the
rebate have not been disclosed, but “it’s going to be meaningful enough
to make a dent,” McBee said, although it will not cover the full cost
of ripping out a lawn. It will be separate from any other incentives the
state is offering as part of its goal to replace 50 million lawns this
year with drought-resistant landscaping. The sale of solar by NRG and others could get a boost due to the drought as the energy-water nexus
becomes a talking point for water-conscious customers. Hydropower
output is already down in California due to the drought, which is mostly
being made up for by more natural gas.
California has some of the
strictest rules in the nation around closed-loop cooling systems for
thermal power plants that use marine water, but even for plants that use
closed-cycle cooling, water is still lost to evaporation. Nationally,
more than 40 percent of freshwater withdrawals go to thermoelectric generation. Solar PV and wind, on the other hand, do not have the water requirements for cooling that thermoelectric plants do. “Our
business is solar-led, but it’s not solar-exclusive,” said McBee.
“We’re moving water up to the top of the stack.” San Diego and Fresno
are the first cities, but NRG hopes to expand the bundle to more of
California as the year goes on.
The bundle is just the tip of the
melting iceberg. “We’re looking at all kinds of technologies,” McBee
said about NRG Home’s approach to integrating water into its offering,
which currently includes solar, EV charging, home repair services and
portable power. Everything from low-flow fixtures to gray water
recycling systems are being considered.
“We want the most
intelligent and integrated offering we can bring to customers for water
efficiency.” A more complete suite of water efficiency products is
expected at the end of this year. For NRG’s retail energy
business, there is also an opportunity to integrate water solutions,
especially in Texas, which has also faced drought conditions in recent
years, although reports have suggested it could be subsiding in 2015.
http://theenergycollective.com/katherinetweed/2221311/nrg-bundles-solar-water-efficiency-california
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