NextNRG Signs Letter of Intent for Two Healthcare Facility Smart Microgrid Projects in Los Angeles County

Rhea-AI Summary

NextNRG (NASDAQ: NXXT) has signed a letter of intent to develop smart microgrid systems for two Los Angeles healthcare facilities under 28-year Power Purchase Agreements (PPAs). The company will design, build, own, and operate comprehensive energy infrastructure for Sunnyside Nursing and Post-Acute Care at $0.25/kWh and Topanga Terrace Rehabilitation & Subacute at $0.22/kWh, both with 2% annual escalators through 2053.

Each facility will feature up to 830 kWh DC solar capacity and 2.2 MWh battery storage. The systems will be powered by NextNRG's proprietary Utility Operating System and SmartGrid technology. The company estimates its Total Addressable Market (TAM) in healthcare microgrids at $3.2 billion annually, potentially reaching $7-8 billion by early 2030s.

NextNRG reported preliminary May 2025 revenue of $6.6 million, representing 148% year-over-year growth.

Positive

• Secured 28-year Power Purchase Agreements with guaranteed revenue streams through 2053
• Strategic entry into healthcare sector with mandatory power requirements and regulatory compliance
• Significant TAM of $3.2 billion with potential growth to $7-8 billion by early 2030s
• Strong revenue growth of 148% year-over-year in May 2025
• Predictable cash flows with 2% annual price escalators built into PPAs

Negative

• Initial deployment limited to only two facilities, requiring significant scaling for market impact
• High capital expenditure required for infrastructure ownership and operation
• Long-term fixed pricing structure may expose company to inflation and maintenance cost risks

Insights

Energy Infrastructure Analyst

NextNRG's entry into healthcare with 28-year PPAs provides stable long-term revenue while addressing mandatory power reliability requirements.

NextNRG's strategic expansion into healthcare microgrids marks a significant business evolution beyond its existing operations. The company isn't simply selling equipment - it's implementing an asset ownership model where it maintains control of the infrastructure while selling electricity through 28-year PPAs at $0.25 and $0.22 per kWh with 2% annual escalators.

These agreements create contracted revenue streams extending to 2053, offering exceptional financial visibility rare in the energy sector. The healthcare target is particularly strategic as these facilities have regulatory mandates for continuous power availability, unlike commercial customers where backup power is optional.

The technical implementation combines multiple generation sources: solar arrays (830 kWh DC capacity), battery storage (2.2 MWh), and backup generators - all integrated through NextNRG's proprietary Utility Operating System. This energy-agnostic approach differentiates NextNRG from pure renewable players by optimizing multiple inputs through AI.

The market opportunity is substantial with over 15,300 nursing homes and 32,231 assisted living facilities nationwide - all requiring mandatory continuous power. NextNRG estimates a $3.2 billion total addressable market growing to $7-8 billion by early 2030s.

These projects establish a replicable model for similar healthcare facilities facing identical regulatory requirements and resilience concerns, potentially creating a scalable template for accelerated growth throughout this essential services sector.

Financial Analyst

The 28-year PPAs represent a transformative revenue model for NextNRG, shifting from one-time equipment sales to predictable, inflation-protected recurring revenue. With 2% annual escalators, these agreements provide built-in growth that compounds over nearly three decades.

Financial implications are substantial. While initial capital expenditure will be required to construct the microgrids, the ownership structure allows NextNRG to capture the full lifetime value of these assets rather than just installation margins. The company effectively becomes a specialized utility provider with contracted rates significantly above standard grid prices ($0.25/$0.22 vs typical commercial rates).

The economics of healthcare facilities make them ideal customers - they prioritize reliability over cost sensitivity due to regulatory requirements and patient safety concerns. This creates higher margins than would be achievable in more cost-conscious sectors.

These projects align with NextNRG's diversification strategy across multiple energy segments, complementing its mobile fueling operations which demonstrated 148% year-over-year growth as of May 2025 (reaching $6.6 million monthly revenue).

The healthcare microgrid market's $3.2 billion current opportunity provides ample room for expansion using this same template. With thousands of similar facilities nationwide and minimal customer acquisition costs once the model is proven, NextNRG could rapidly scale this business line while maintaining pricing power due to the essential nature of these services.

Strategic expansion into essential healthcare sector demonstrates NextNRG's energy-agnostic technology and own-and-operate model

Projects establish NextNRG as dedicated energy provider under long-term contracts to facilities requiring mandatory continuous power

MIAMI, July 16, 2025 (GLOBE NEWSWIRE) -- NextNRG, Inc. (NASDAQ: NXXT), a pioneer in AI driven energy innovation transforming how energy is produced, managed, and delivered through its Next Utility Operating System®, smart microgrids, wireless EV charging, and mobile fuel delivery, today announced it has signed a letter of intent to develop critical energy infrastructure for two healthcare facilities operated by Sunnyside Nursing and Post-Acute Care (Sunnyside) and Topanga Terrace Rehabilitation & Subacute (Topanga) in Los Angeles, California.

NextNRG will own and operate the complete smart microgrid systems and sell electricity directly to both facilities under separate 28-year Power Purchase Agreements (PPAs), establishing predictable long-term revenue streams in the essential healthcare sector where continuous, reliable power is not just preferred but mandatory. The PPA for the Sunnyside facility will generate revenue at $0.25 per kWh with a 2% annual escalator, while the Topanga facility will generate revenue at $0.22 per kWh with a 2% annual escalator, providing NextNRG with contracted cash flows extending through 2053.

NextNRG will design, build, own and operate comprehensive smart microgrid systems for each facility, then sell electricity from these NextNRG-owned grids to the healthcare facilities. The energy infrastructure will incorporate generation through solar and renewable sources, as well as battery storage for enhanced reliability. All components will be integrated into comprehensive smart microgrids powered by NextNRG's proprietary UOS (Utility Operating System) and SmartGrid technology. Each system will feature up to 830 kWh DC of solar photovoltaic capacity and 2.2 MWh of battery energy storage with ground-mounted solar arrays.

By combining batteries with generators, NextNRG will significantly reduce the risk of power outages while ensuring compliance with HCAI (Healthcare Access and Information) requirements. The healthcare facilities gain operational resilience and access to tax incentives, while NextNRG establishes a strategic foothold in the highly regulated and lucrative healthcare sector.

"These projects represent our strategic entry into the healthcare market, where energy reliability is mandatory rather than optional," said Michael D. Farkas, Founder and CEO of NextNRG. "The 28-year contracted revenue from selling electricity generated by our owned infrastructure provides exceptional visibility and stability, while demonstrating our software's ability to manage and optimize power from any source. This energy-agnostic functionality positions us to capture significant opportunities across the healthcare sector, where facilities require uninterrupted power for life-safety systems and patient care."

The projects showcase NextNRG's proprietary technology platform designed to optimize and manage diverse energy inputs through advanced artificial intelligence, including traditional grid power, renewable sources, solar, and emerging technologies. This energy-agnostic capability provides maximum flexibility for healthcare facilities while demonstrating NextNRG's ability to serve as a complete energy solution provider rather than just a renewable energy company.

Healthcare facilities represent a particularly compelling market opportunity for NextNRG's own-and-operate model. Hospitals, nursing homes, and other healthcare facilities prioritize energy reliability and long-term cost predictability, making them ideal candidates for long-term PPA arrangements. The healthcare sector's essential nature and regulatory requirements create a stable customer base with predictable energy needs and willingness to pay for enhanced reliability.

The addressable market for NextNRG's smart microgrid solutions in the healthcare sector is substantial, with 15,300 nursing homes and 32,231 assisted living facilities across the United States. These facilities are subject to stringent regulatory requirements mandating backup power systems to ensure continuous operation of life-safety equipment, HVAC systems, and critical care infrastructure. NextNRG's comprehensive smart microgrids provide a superior alternative to traditional diesel generators, offering cleaner, more reliable backup storage while meeting all applicable healthcare regulations and emergency preparedness standards. NextNRG’s TAM in healthcare microgrids is roughly $3.2 billion in annual revenue opportunity today, growing into the $7–8 billion range by the early 2030s, driven by resilient infrastructure needs, AI integration, and regulatory tailwinds.

"The healthcare sector represents a massive market opportunity where our ownership model and technology create significant value," added Mr. Farkas. "These facilities cannot afford power interruptions, and our comprehensive smart microgrid solutions powered by machine learning provide the energy security they require while generating stable, long-term cash flows for NextNRG from our owned energy assets. We see substantial potential to replicate this ownership and energy sales model across thousands of healthcare facilities nationwide."

These projects build on NextNRG's recent momentum, including its partnership with Hudson Sustainable Group, inclusion in the Russell 2000® and Russell 3000® indexes, and record-breaking revenue growth with preliminary May 2025 revenue of $6.6 million representing 148% year-over-year growth. The healthcare market expansion complements NextNRG's established mobile fueling operations across six U.S. states with 144 active delivery trucks.

The agreement advances NextNRG's strategy of deploying next-generation energy infrastructure through its integrated ecosystem of AI-optimized solutions, establishing the company as a leader in intelligent energy management and delivery across essential service sectors.

About NextNRG, Inc.

NextNRG Inc. (NextNRG) is Powering What's Next by implementing artificial intelligence (AI) and machine learning (ML) into renewable energy, next-generation energy infrastructure, battery storage, wireless electric vehicle (EV) charging and on-demand mobile fuel delivery to create an integrated ecosystem.

At the core of NextNRG's strategy is its Next Utility Operating System®, which leverages AI and ML to help make existing utilities' energy management as efficient as possible; and the deployment of NextNRG smart microgrids, which utilize AI-driven energy management alongside solar power and battery storage to enhance energy efficiency, reduce costs and improve grid resiliency. These microgrids are designed to serve commercial properties, healthcare campuses, universities, parking garages, rural and tribal lands, recreational facilities, and government properties, expanding energy accessibility while supporting decarbonization initiatives.

NextNRG continues to expand its growing fleet of fuel delivery trucks and national footprint, including the acquisition of Yoshi Mobility's fuel division and Shell Oil's trucks, further solidifying its position as a leader in the on-demand fueling industry. NextNRG is also integrating sustainable energy solutions into its mobile fueling operations. The company hopes to be an integral part of assisting its fleet customers in their transition to EV, providing fuel delivery while advancing efficient energy adoption. The transition process is expected to include the deployment of NextNRG's innovative wireless EV charging solutions.

To find out more visit: www.nextnrg.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement describing NextNRG's goals, expectations, financial or other projections, intentions, or beliefs is a forward-looking statement and should be considered an at-risk statement. Words such as "expect," "intends," "will," and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, including, but not limited to, those related to NextNRG's business and macroeconomic and geopolitical events. These and other risks are described in NextNRG's filings with the Securities and Exchange Commission from time to time. NextNRG's forward-looking statements involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements. Although NextNRG's forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by NextNRG. Except as required by law, NextNRG undertakes no obligation to update any forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements.

Investor Relations Contact

NextNRG, Inc.
Sharon Cohen
SCohen@nextnrg.com

FAQ

What are the terms of NextNRG's (NXXT) healthcare facility PPAs in Los Angeles?

NextNRG signed 28-year PPAs with Sunnyside at $0.25/kWh and Topanga at $0.22/kWh, both including 2% annual escalators through 2053.

What is NextNRG's (NXXT) total addressable market in healthcare microgrids?

NextNRG's current TAM is $3.2 billion annually, with potential growth to $7-8 billion by early 2030s, covering 15,300 nursing homes and 32,231 assisted living facilities in the US.

How much revenue did NextNRG (NXXT) report for May 2025?

NextNRG reported preliminary May 2025 revenue of $6.6 million, showing 148% growth year-over-year.

What is the capacity of NextNRG's smart microgrid systems for the healthcare facilities?

Each system will feature up to 830 kWh DC of solar photovoltaic capacity and 2.2 MWh of battery energy storage with ground-mounted solar arrays.

How does NextNRG's smart microgrid system benefit healthcare facilities?

The system provides mandatory continuous power, operational resilience, tax incentives, and regulatory compliance with HCAI requirements while reducing power outage risks through combined battery and generator systems.