Target is making progress toward its ambitious goal of generating cleaner energy for store operations.
Retailers are leading the way when it comes to corporate solar adoption in the United States. According to the Solar Energy Industries Association (SEIA), nine of the top 10 corporate solar users in 2017 were retailers or mall owners. (Note: 2018 figures aren’t yet available.)
Target topped this list of solar energy adopters for the second year in a row by having installed more than 203.48 megawatts (MWs) of solar capacity. (In some cases, Target sells the renewable energy credits generated by such solar capacity.*)
The retailer completed its first three solar installations on stores in the Los Angeles area in 2003 but ramped up its solar program in 2014. “As part of our goal to operate with 100 percent renewable energy, in addition to other efforts, we will have rooftop solar panels on 500 Target buildings nationwide by 2020,” said John Leisen, the company’s Vice President of Property Management.
By the end of 2017, the retailer was making good progress toward its goal of 500 onsite installations, when it had 436 solar projects completed.
The installations are now operating on about one-quarter of Target’s 1,800 stores, spread across 20 states from California to Massachusetts to Texas and even to Target’s snowy home state of Minnesota. The total megawatt hours supplied by these installations could power more than 26,000 homes with clean energy.
By investing in solar to meet some of its energy needs, Target is creating cleaner operations and a healthier environment for its team members and guests, Leisen said.
“One of the big benefits is that financially it helps us reduce our energy costs; a roof with solar can generate, on average, an amount equal to about 30 percent of a store’s electric needs over the course of a year. So there’s a financial driver on top of the environmental win,” Leisen continued.
Location, Location, Location
Target has an integrated property management team that’s responsible for solar installations for its locations. The company representatives come from all levels of the organization, from headquarters to the individual stores. They work closely with the solar providers and the utilities in each area.
Factors that determine which stores receive solar installations include the availability of sunlight in an area and the estimated value of the energy the panels can offset. The team also looks at each building’s structural characteristics, including roof type and age and existing electrical equipment. It’s been a learning process.
“We had a few situations early on where roof maintenance became a little more complex, but all in all it’s been a really rewarding experience for us across the board,” Leisen said.
Once installed, the solar panels are relatively low maintenance. “You just make sure they’re clean and operating efficiently,” he continued. The systems Target installed in 2003 in Los Angeles are still operating today, but the newer solar technologies provide a lot more energy.
To reduce overall energy usage, Target has incorporated improvements like efficient HVAC and low-wattage lighting systems into its stores. (The company is ENERGY STAR certified in more than 1,500 stores.) These systems are controlled by smart building energy management systems. Any excess power generated by Target’s solar installations is transferred back to the grid, unless there are specific local or utility requirements that prohibit sharing.
To investigate the best way to retain some of the power for its own use, Target installed energy storage systems in nine sites across California and Hawaii and is evaluating their performance. These battery storage systems work in conjunction with the solar panels and/or with the electrical grid system.
“In partnership with SunPower, we installed our first combined solar and solar-powered battery storage project in Kona, Hawaii, which provided more than 40 percent of the Kona store’s energy,” Leisen said. At the end of 2017, six of Target’s seven stores in Hawaii had rooftop solar panels.
Beyond Panels
Solar rooftop installations aren’t the only way retailers can become part of the green energy movement. Target, which plans to one day source 100 percent of its electricity needs from renewable resources for its domestic operations, is part of several larger-scale solar and wind projects. Its purchase of wind energy generated by the Stephens Ranch project in Texas offsets the energy used at 60 Target stores. In Kansas, energy from the Solomon Forks wind farm project, which will be launched this summer, will offset 150 stores’ energy usage.
Target is also part of Puget Sound Energy’s Green Direct program in Washington state, which is building new wind and solar power installations to provide power to local government and commercial customers, including Target, Walmart and REI.
Moving toward full adoption of renewable energy resources requires the support, insight and engagement of Target’s stakeholders and partners, Leisen said. “They understand that to make a significant impact, we must think beyond the short-term. We’re designing for the future by putting renewable energy solutions, like solar, in place across our business to support our communities and leave the planet better for future families.” what
*In some cases, Target may generate solar energy in support of utility and state clean energy programs and policies. In those instances, Target does not retain the renewable energy credits (RECs). According to the EPA, RECs represent the property rights to the environmental, social and other non-power attributes of renewable electricity generation. One REC is issued for each megawatt hour (MWh) of electricity generated and delivered to the electricity grid from
a renewable energy resource.
Top Corporate Solar Users 2017
From the Solar Energy Industries Association:
- Target
- Walmart
- Prologis (logistics real estate)
- Apple
- Kohl’s
- Costco
- General Growth Properties
- Ikea
- Macy’s
- Amazon
Five Tips for Adding Solar Power
Thinking about going solar? John Leisen, Vice President of Property Management at Target, offers these tips:
- Start with a clear goal.
Establish a goal supported by your company, as this will help drive future development and serve as a compass for the organization. Target set a goal of having solar installations on 500 locations by 2020. “We wanted to make a clear and simple statement; it’s something everyone can align on,” Leisen said. - Evaluate locations effectively.
Make sure you understand the limitations you might face at any location. Do you have the property rights to install solar panels on a particular store? Evaluate the current roof: How is it constructed? How old is it? Will you have to replace or repair it in the near future? Will you be able to perform maintenance easily once solar panels are installed? All of these should factor into your decision. - Build for the future.
Think beyond current energy needs, because they may change quite a bit based on a particular store’s operations. Looking at future energy requirements can help you determine the appropriate size for your solar installation. - Partner with a proven solar developer.
The solar industry is complex. It’s important you work with a solar developer in each area who has a strong track record and is familiar with the local market along with the utility you’ll be dealing with. - Take a team approach.
“It’s a big undertaking to install rooftop solar systems and make them operational, and it takes a wide range of partners and team members across your company,” Leisen said. “It’s important to have an integrated property management team, from headquarters to the store level, that can work hand-in-hand on these projects.”
Any excess power generated by Target’s solar installations is transferred back to the grid, unless there are specific local or utility requirements that prohibit that sharing.
By: Mary Lou Jay
