NextNRG Inc. entered into a 28‑year Power Purchase Agreement with Sunnyside Nursing and Post‑Acute Care Center in Torrance, California, on November 20 2025. The contract obligates the company to deliver electricity from a microgrid that blends 409 kW of rooftop solar, a 300 kW battery energy‑storage system, and the facility’s existing gas‑fueled backup generators, while also covering a full roof replacement as part of the project scope.
Under the agreement, Sunnyside will pay $0.25 per kilowatt‑hour for the first year, with a 2 % annual escalator. The microgrid is expected to generate 627,000 kWh in its first year, producing roughly $5 million in gross revenue over the life of the contract. The predictable, long‑term price structure provides the facility with a stable energy cost while giving NextNRG a secured, asset‑backed revenue stream.
The deal marks a strategic pivot for NextNRG from a development‑stage project model to an own‑and‑operate model. It also positions the company in a $3.2 billion annual addressable market for resilient energy solutions in long‑term care facilities, a segment that is increasingly regulated to require 96‑hour backup power. California’s regulatory tailwinds are driving demand for such microgrid solutions, and the Sunnyside contract is a tangible example of that demand materializing.
Executive Chairman and CEO Michael D. Farkas said the PPA is a turning point for the company: “Signing this long‑term PPA with Sunnyside is a turning point for NextNRG. We’re no longer just developing projects; we’re locking in long‑term, contracted revenue for critical microgrid assets that we own and operate.” He added that the contract underscores the importance of reliable power for facilities that provide life‑sustaining care.
NextNRG’s Q3 2025 earnings revealed a $0.11 per share loss versus the consensus of $0.05, driven largely by a $5.6 million non‑cash stock‑based compensation expense and continued operating losses. Despite the earnings miss, revenue grew 232 % year‑over‑year to $22.9 million, reflecting strong demand for the company’s microgrid solutions. The PPA adds a predictable revenue stream that helps offset the current loss profile and supports the company’s goal of $100 million forward 12‑month revenue and profitability in 2026.
The contract’s long‑term nature and the regulated market it serves provide a foundation for NextNRG’s broader strategy to expand into healthcare resilience. While investors remain cautious due to ongoing net losses, the Sunnyside PPA demonstrates the company’s ability to secure high‑value, long‑term contracts that can drive future profitability.
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