Recognizing the potential of renewable energy, especially in the context of rising energy costs and environmental concerns, Pierce Distribution decided to invest in solar energy. Pierce Distribution Services recently undertook a significant step towards sustainability and cost efficiency by implementing rooftop solar project. Funded through a Power Purchase Agreement (PPA), this initiative presents a financially viable model for renewable energy adoption in the logistics and distribution industry. Financing solar system through the PPA model leads to immediate energy cost savings with no upfront investment and mitigates the risk associated with energy price volatility. The path to implementing the commercial solar project presented its challenges. A noteworthy obstacle was the need for a transformer upgrade, as required by the utility provider. This stipulation resulted in project delays but also provided General Energy with critical learning experiences for future renewable energy projects.
The PPA funding model played a pivotal role in the project’s execution and success. Key features of this arrangement included:
- No upfront capital costs for the customer
- Project developer responsible for their asset ownership and maintenance.
- Customer purchases the generated electricity at a at a rate often lower than the grid rate, ensuring long-term cost savings over the contract period.
- System Size and Type: 207 kW Rooftop Solar PV System
- Annual Electricity Generation: The solar system is projected to produce approximately 262,612 kWh energy annually.
- Annual Environmental Impact: The solar system is anticipated to significantly diminish the company’s carbon footprint, reducing it by roughly 186 tons annually. This impact equates to the CO2 emissions from consuming 20,942 gallons of gasoline.
