NRG Energy Acquires Vivint
Last week, power company NRG Energy, Inc. announced it would buy Vivint Smart Home for $2.8B in cash. The acquisition allows NRG to expand its market footprint in the US and diversify its product offerings from energy to connected home and security services. NRG will also capitalize on Vivint’s customer base of paying subscribers; according to a release, the combined company will have a network of over 7 million customers across North America.
The NPD Take:
- NRG Energy’s acquisition of Vivint allows the power company to offer more services and add to its roster of customers.
- While selling devices into subscriber homes will drive some revenue, the opportunity to expand services (and a steady stream of revenue via subscription fees) is likely a strong driver of this deal. Expect energy monitoring devices and services to be a focus for this combined company.
Ecobee Offers Free Smart Thermostats
Smart thermostat company Ecobee, a subsidiary of Generac Power Systems, announced last week that it would participate in the ConEd ecosave program in Westchester County, NY. ConEd ecosave is an energy saving program from Ecobee that helps reduce power demands on the power grid during times of high usage. Customers who participate get a free Ecobee 3 or $100 off Ecobee’s Smart Thermostat Premium. According to a release, participating in the program will help subscribers “reduce their families’ energy costs.”
The NPD Take:
- Programs like ConEd ecosave help drive adoption of smart thermostats while at the same time helping regional electric companies better plan for energy usage. While many smart thermostat buyers say ‘saving energy’ is a reason for purchase, a similar number say they are looking to ‘save energy costs’.
- Providing consumers with an actual monetary savings on their monthly bill can help persuade people to purchase a smart thermostat and more programs like this can help drive adoption of the products.