NextNRG Expands into Healthcare Sector with Smart Microgrid Projects in Los Angeles County

NextNRG has signed a letter of intent to develop smart microgrid systems for two healthcare facilities in Los Angeles County. The projects will generate predictable long-term revenue streams through 28-year Power Purchase Agreements, with NextNRG owning and operating the energy infrastructure. The facilities will receive reliable and renewable energy, and NextNRG will benefit from contracted cash flows and strategic foothold in the healthcare sector.

NextNRG (NASDAQ: NXXT) has signed a letter of intent to develop smart microgrid systems for two healthcare facilities in Los Angeles County. The projects aim to generate predictable long-term revenue streams through 28-year Power Purchase Agreements (PPAs), with NextNRG owning and operating the energy infrastructure. The facilities, Sunnyside Nursing and Post-Acute Care, and Topanga Terrace Rehabilitation & Subacute, will benefit from reliable and renewable energy, while NextNRG will gain a strategic foothold in the healthcare sector.

Under the agreement, NextNRG will design, build, own, and operate comprehensive smart microgrid systems for each facility. The systems will include up to 830 kWh DC solar capacity and 2.2 MWh battery storage, integrated through NextNRG's proprietary Utility Operating System and SmartGrid technology. 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 estimates its Total Addressable Market (TAM) in healthcare microgrids at $3.2 billion annually, potentially reaching $7-8 billion by the early 2030s. The company's entry into healthcare with 28-year PPAs provides stable long-term revenue while addressing mandatory power reliability requirements. These projects represent a significant business evolution for NextNRG, moving beyond its existing operations to implement an asset ownership model with contracted revenue streams extending to 2053.

The healthcare facilities' regulatory mandates for continuous power availability make them ideal customers, prioritizing reliability over cost sensitivity due to patient safety concerns. The technical implementation combines multiple generation sources: solar arrays, battery storage, and backup generators, all optimized 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 requiring mandatory continuous power. 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.

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, as initial capital expenditure will be required to construct the microgrids, but the ownership structure allows NextNRG to capture the full lifetime value of these assets rather than just installation margins.

NextNRG's strategic expansion into the healthcare sector demonstrates its energy-agnostic technology and own-and-operate model. The company's recent momentum, including record-breaking revenue growth with preliminary May 2025 revenue of $6.6 million representing 148% year-over-year growth, complements this healthcare market expansion.

References:
[1] https://www.stocktitan.net/news/NXXT/next-nrg-signs-letter-of-intent-for-two-healthcare-facility-smart-hhujptx3jw3f.html