U.S. Retailers Save with Solar PV & Energy Efficiency

Love it!. 

 1) Great business model (also used by Sun Edison) whereby a business owner signs a long term purchase agreement to buy solar power generated (a. lowers investment risk for installer, and b. locks in fixed energy price for the solar power for Macys) and the experts design, install, maintain, and finance and own the PV system.

2) Macys is investing in energy efficiency (probably much better ROI than solar) along with the solar commitment.

3) Contributes to lower carbon footprint, intelligent energy utilization, and leads by example.  It may be small relative to their total energy consumption, but I believe is part of the front end of the wave leading to a greener tomorrow.

With all due respect Mr. Berry, I believe you need to get your facts straight.  First off, comparing a depreciating asset such as a car to a solar electricity system, which generates electricity and will appreciate in value as utility prices increase is not a valid argument.  Secondly, if you were to reference the price per kWhr of solar electricity on solar buzz today you will notice the price quoted is $0.21 kWhr.   http://www.solarbuzz.com/SolarPrices.htmAlso according to Solar Buzz "Over the last 20 years the cost of Solar Energy Systems has come down seven fold."...  What do you mean "this is not progress?"...  In my opinion installing megawatts of clean power will reduce grid loads during daily peak hours, boost solar panel manufacturing volumes, which will further reduce the cost of solar.  The more government provides short term incentives to increase volume, the faster solar will compete with conventional electricity prices.  In my opinion.  That's progress.....

 

It just shows how well capitalism works. These businesses will invest in solar and pay $.30 to $.60 per kwh (without direct subsidies SOLAR BUZZ 2006 year end report) for a product that should cost $.12 to $.18 per kwh.

If governmetn screws up the electrical grid enough, forces rationing, third world country style blackouts/brown outs, and refuse to build new generating plants that could make power at $.12 to$.18 per kwh , then the  businssess will invest in solar so as to not be forced into the 3rd world economics.

This is not progress. It is a hidden tax on everybody in the country so people can feel good about themselves. Over paying for a product is simply dumb. If you don't believe me, go by a new car off the lot and pay $40,000 for a $20,000 car. Would any of your fried say you were smart?  Then why are you doing it with electricty? 

Other methods of electricity production cause environmental and health damage which costs large amounts of capital to mitigate or heal.

These large corporations can't be accused of not doing their homework. I'm sure they did the math. The PR value is hard to calculate but definitely makes them look like responsible stewards of the environment that intelligent, concerned customers will support. That's why Whole Foods Market became a multi-billion dollar business, much to the surprise of everyone. 

 

The exchange above shows the wide and different perspectives about energy and it's true costs. Both the cost per kwh and the Peak Demand reduction benefits are important. While the sun doesn't shines as much in New Jersey as in California, it sure does shine during the Peak Demand times making this energy worh quite alot more at the right time! The roof tops of these stores offer valuable realestate and the conversion process of PV is improving everyday. I would also suggest that bringing in natural light is a better investment in renewable energy but it unfortunately can't run the electrocic cash registers. The energy not used for lighting can now be used for those applicatins that need it! Natural light can make everything in the store look better generating more sales which will ultimately also be beneficial! THat's real progress and may help balance the environmental detriments of that mass produced cheap khw's noted above.

Ryan, while I agree that Jim's comments are off the mark, it should be noted that solar installations are also depreciating assets.  Just compare units made today with ones made 10 years ago.

As for this article, one of the key points is that high energy costs are now making investments in efficiency comparable to other capital projects.  In the past the ROI for efficiency upgrades could not compete with other business investments and would be denied.

On the other hand, investments in solar projects by these companies is more PR than ROI.  Yet, the end result is the same. 

The  cost  per kW  of solar  power vs  conventional grid purchased electricity  is solely reflective of the  federal govt's subsidizing  of  oil, gas, coal, and nuclear power.  Your federal tax dollars are spent every single day to  artificially lower the end consumer's cost  of  energy use whether at home or at the gasoline pump.   Only  when  the govt  shifts precious subsidies away from fossil fuels to solar and other alternative  sources of  energy  will the costs  come close to conventional power.  It's an unfair comparison.  If the govt didn't subsidize petrol, you would already pay > $10/gallon of gas!!

John,

The price of PV panels are about plummet and be more competitive. I believe you are right, but the Solar market has been making that claim since the 1970s.  One day they might be right.

If you are right, then putting in a solar system right now is foolish and a waste of money. You can get more PV for less in just a couple of years - so you should wait. Being one of the tax payers subsidizing this mess, I am in favor of waiting until the panels are competitive. Don't buy them the year or two before they are competitive.

IN REGARD TO RYAN, I believe your solar buz quote is for uninstalled panels from the factory without shipping and installation.  I was quoting Solar Buzz for installed panels and related equipment at the END of the transaction when you flip the switch.

As such, the figures are not in conflict. Ryan even reinforces the point that you cann't even buy the panels for less than $.21 per kwh without shipping and installation.. 

If we just builts some coal fired generators, power is $.08 per kwh.  Wind comes in the cheap priced in the teens.per kwh. 

Even big business thinks going green is a good idea, why cant we get the government to move on it.

 Make a green statement in the next elections!!!

It's and excellent business model, and an excellent opportunity.  For decades, PV has been a cottage industry, with strong emphasis on "cottage".  SunEdison's pioneering model, now being replicated nationwide, is creating huge demand for PV, which will lower unit costs while simultaneously spurring technical advancements.

It's not limited to big box stores.  State and local governments can realize the same price advantages by installing large-scale systems on schools and other municipal buildings.  There is huge interest.  While they cannot capture the tax incentives, this model allows them, and society in general, to become more familiar with, and comfortable with PV.  And, after the original Power Purchase Agreement expires, the customer can buy the system at a substantial discount.  Everybody wins. 

The model works in states with generous incentives.  Steering the business toward state and municipal entities delivers more bang for the taxpayers' bucks, in contrast to underwriting installations on retailers, with benefits to corporations and stockholders oftentimes headquartered in other states.