Target Energizes its Stores with Solar
The United States reached a new renewable energy milestone in March 2017 when wind and solar accounted for 10 percent of all electricity generated for the month – with wind accounting for eight percent and solar representing two percent.1
One retailer doing its part to increase the adoption of renewable energy sources is Target.
“Target has always had a strong commitment to our communities, which includes a focus on sustainability and creating a healthier environment for our team and our guests,” said John Leisen, Vice President, Target Properties. This commitment includes several energy management goals such as: achieving the Energy Star designation for 80 percent of all stores by 2020; installing rooftop solar on 500 stores by 2020 and making significant investments in the purchase or generation of clean, renewable energy – including solar and wind; and reducing greenhouse gas emissions from Target’s operations 25 percent by 2025.
Over 1,500 Target stores have achieved Energy Star certification, which is an important first step in any energy management program, Leisen said. “Our goal was to reach 80 percent by 2020 but we will achieve this goal in 2017.”
Target is also using wind farm-generated energy in its stores with one farm in Texas online now and one wind farm in Kansas coming online in 2019. “These wind installations will produce enough clean energy to supply 200 stores,” Leisen said. “As of today, we have over 350 stores with rooftop solar installations in 20 states,” he said. “These solar systems generate enough electricity to power 26,000 homes for a year.”
“Technology has evolved since we installed our first solar project in 2003,” Leisen said. “The systems are more efficient and easier to install, and they provide tangible proof of our commitment to renewable energy.”
Store rooftops provide the ideal location for a solar panel installation – open, expansive spaces that are “free” to use, pointed out Leisen. In addition to the rooftop panels, Target has six stores that also use large scale batteries for energy storage.
“Innovations in battery technology have made combining energy storage systems with solar more compelling,” Leisen explained. “For example, the 910-kilowatt solar system and 250-kilowatt battery at the store in Kona, Hawaii provides over 40 percent of the store’s energy and captures energy during the day to power lights and refrigeration later in the day.”
There is also a strong business case for solar, Leisen said. Rooftop solar reduces electricity costs and allows customers to fix a portion of energy expenses, which provides financial certainty. “The reduced energy costs, combined with tax credits and utility solar programs, deliver strong financial results for Target,” he explained. “In states that allow rooftop solar power purchase agreements, retailers may be able to achieve these financial results without expending capital.”
These projects also help Target meet corporate sustainability goals that the retailer publicly reports on to stakeholders. In addition, solar projects contribute to job growth and reduce pollution in local communities, reinforcing Target’s commitment to the communities in which it operates, Leisen added.
Although solar systems are a critical piece of Target’s energy management program, not all buildings for all retailers are appropriate for solar installations. “The roof must be structurally sound and have enough space to handle an installation that can provide approximately 30 percent of the store’s energy,” Leisen said. It is also important that the roof be new because it does not make sense to install a solar panel system on a roof that will be replaced in the near future – making removal and re-installation of the solar panels necessary.
Once installed, solar panels are easy to maintain. Other than inspecting panels for cracks, making sure they are clean and ensuring that wires and connections are in good condition, there is little else that a vendor must do.
While the retailer has set ambitious goals for the renewable energy program, Target doesn’t state its goals in terms of a net zero energy plan. “Our commitments to 100 percent renewable energy, and efficient sustainable operations are achieved using many of the same strategies that a net zero energy plan has,” Leisen said. “Powerful strategies to reduce energy include LED lighting and efficient HVAC systems, while renewable energy strategies include rooftop solar, offsite wind and utility partnerships. Together these exciting programs are making a long-term, positive impact on our business and the communities we serve.”
Growing the program includes solar installations on new stores and participation in initiatives such as Puget Sound Energy’s Green Direct Tariff – which is a large-scale wind energy project that serves multiple customers in the Northwest U.S.
“We also recognize that our guests are choosing to use clean energy in their lives, and we are adding electric vehicle charging stations at select stores in California and Hawaii,” Leisen said. “As clean innovations emerge, we’ll continue to evaluate and implement them as part of our commitment to maintain a sustainable, healthy community at all of our store locations.”
Reference:
1. U.S. Energy Information Administration. Today in Energy, June 14, 2017. https://www.eia.gov/todayinenergy/detail.php?id=31632
John Leisen
“The reduced energy costs, combined with tax credits and utility solar programs, deliver strong financial results for Target.”
John Leisen
Solar Tips from an Expert
With solar installations on more than 350 stores, John Leisen, Vice President, Target Properties, has a lot of experience with selection of sites, suppliers and products. Here are a few tips he recommends for retailers who are considering solar energy for their stores:
• Start with a strong partner who has a proven track record for assembly, maintenance and operation of solar energy systems in the geographic area of the store. The partner should have great relationships with local utilities to be able to advise the retailer on energy buy-back programs, cost savings and incentive programs.
• Understand the rates and incentives available for a store, and evaluate owning the equipment versus operating under a Power Purchase Agreement. The solar partner’s expertise is invaluable when comparing options because every utility’s program is different for savings, incentives and qualifications.
• Choose a partner who is an industry leader in solar and project management, suggested Leisen. “The partner should also understand batteries – new technology and capabilities.”
By: Sheryl S. Jackson
