Generac Receives Up To $200 Million Award from U.S. Department of Energy to Supply Renewable Power to Puerto Rico's Most Vulnerable Residents

Rhea-AI Summary

Generac Power Systems (NYSE: GNRC) has been awarded a grant of up to $200 million over five years from the U.S. Department of Energy (DOE) as part of the $1 billion Puerto Rico Energy Resilience Fund. The grant, under the Programa Acceso Solar, will facilitate the installation of residential solar and battery storage systems for disadvantaged Puerto Rican households, starting in August 2024.

The program aims to provide clean and resilient energy in low-income areas experiencing frequent power outages and to households with energy-dependent disabled residents. Generac will collaborate with local companies, including PathStone, Interstate Renewable Energy Council, FR-BLDM, Juapi Energy, and Palmetto, to support installations, workforce development, and community outreach.

Positive

• Awarded up to $200 million grant from U.S. Department of Energy
• Expansion into residential solar and battery storage market in Puerto Rico
• Collaboration with local companies for installations and workforce development
• Potential for increased revenue and market share in renewable energy sector

Negative

• Grant funding spread over five years, potentially limiting immediate financial impact
• Dependence on government funding for project execution

Local companies to provide solar/battery storage installations in low-income communities hit hardest by long and frequent outages

WAUKESHA, Wis., July 17, 2024 /PRNewswire/ -- Generac Power Systems (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, today announced the company has been awarded a grant of up to $200 million over the five year term of the award agreement with the U.S. Department of Energy (DOE) as part of the $1 billion Puerto Rico Energy Resilience Fund (PR-ERF). Under the PR-ERF's Programa Acceso Solar (Solar Access Program), Generac will facilitate the installation of residential solar and battery storage systems for disadvantaged Puerto Rican households. Installations will begin in August of 2024.

Generac and its local project affiliates in Puerto Rico will offer clean and resilient energy in low-income areas that experience frequent and prolonged power outages as well as to households where a resident with an energy-dependent disability resides. This funding also will support clean energy jobs and help Puerto Rico achieve its renewable energy goal of meeting its electricity needs with 100% renewable energy by 2050. Puerto Rico residents interested in applying for the program can visit the Programa Acceso Solar website to learn more.

"We've been providing reliable backup power solutions to the people of Puerto Rico for more than 20 years, including after Hurricane Maria devastated the island's power grid and left 95% of residents without electricity," said Aaron Jagdfeld, president and CEO at Generac. He added, "We are proud to be a recipient of this DOE grant to provide clean, resilient, efficient power for those who are often underserved during outages."

"The Programa Acceso Solar will have a transformative impact on vulnerable households by improving access to reliable and affordable energy," said Maria Robinson, Director of DOE's Grid Deployment Office. "DOE is pleased to partner with Generac to install residential solar and battery storage systems across Puerto Rico, improving energy resilience for households with some of the greatest need."  

Generac will be working with several companies to support the program:

• Two community affiliates in this effort include PathStone, a nonprofit organization providing community and workforce development and humanitarian services in Puerto Rico since 1998 and the Interstate Renewable Energy Council (IREC), a clean energy non-profit established in 1982 that leads groundbreaking community programs and market research, will together coordinate additional local community efforts to serve as liaisons between Solar Ambassadors, installers, and eligible recipients.
• FR-BLDM, a leading local contractor with years of government program management experience will lead installations working with other local, small, family-owned businesses in Puerto Rico.
• Juapi Energy, a PWRcell installer and Generac Service Dealer in Puerto Rico will provide service support to residents and will perform installations.
• Palmetto, a leading climate technology company accelerating the adoption of clean energy, will extend three of its commercial software applications: fintech platform, installation partner portal, and asset management services, to help facilitate homeowners' transition to solar and storage in Puerto Rico.

These companies will help lead workforce development and training efforts that focus on providing jobs for residents in vulnerable communities across Puerto Rico.

"Supporting local companies is an important part of our objective to provide reliable and sustainable energy solutions to Puerto Rico's most vulnerable communities," said Norm Taffe, president of Energy Technology at Generac. "By working with local installers and businesses, we not only gain valuable on-the-ground support but also foster job creation and community development. This collaboration helps ensure that we can deliver high-quality, resilient power solutions while uplifting the local workforce and economy."

For more information, visit the Department of Energy Grid Deployment Office website.

About Generac 
Generac Power Systems (NYSE: GNRC) is a leading energy technology company that provides backup and prime power products and energy storage systems for home and business applications, as well as energy monitoring and management devices and services, along with other power products. Founded in 1959, Generac introduced the first affordable backup generator and later created the automatic home standby generator category. The Company has continued to expand its energy technology offerings in its mission to lead the evolution to more resilient, efficient, and sustainable energy solutions.

Media Contact: Jonathan Stern 
Jonathan.Stern@Generac.com 

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SOURCE Generac Power Systems, Inc.

FAQ

What is the value of the grant awarded to Generac (GNRC) by the U.S. Department of Energy?

Generac (GNRC) has been awarded a grant of up to $200 million over a five-year term by the U.S. Department of Energy.

When will Generac (GNRC) begin installations for the Puerto Rico solar project?

Generac (GNRC) will begin installations for the Puerto Rico solar project in August 2024.

What is the purpose of the Programa Acceso Solar that Generac (GNRC) is participating in?

The Programa Acceso Solar aims to provide clean and resilient energy through solar and battery storage systems to disadvantaged Puerto Rican households and areas experiencing frequent power outages.

Which local companies is Generac (GNRC) partnering with for the Puerto Rico project?

Generac (GNRC) is partnering with local companies including PathStone, Interstate Renewable Energy Council, FR-BLDM, Juapi Energy, and Palmetto for the Puerto Rico project.