UPS has made a major investment in two solar projects at its distribution facilities inParsippany and Secaucus, New Jersey, as part of its commitment to increase the use of renewable
energy resources in the USA and across the globe.Both 1.2 megawatt projects will expand the company’s solar power generating capacity from 360kilowatts to 2,760 kilowatts to produce over 3 million kilowatt hours of renewable energy peryear.
The Parsippany project was completed last year while the facility in Secaucus will be ready foroperation in spring this year. The combined power produced from these projects is equivalent toproviding electricity for more than 300 homes annually.
The UPS facilities will typically operate during off-peak hours which allows a significantproportion of the renewable electricity to flow back to the grid in what is known as net metering.This can help to protect against peak demand periods for kilowatt hours, especially during peaksummer months. This way, utilities will need to purchase less energy from more expensive distantsources to cover peak periods of demand, UPS explained.
UPS stressed its investment in renewable energy production is subject to a rigorous evaluationfor return on investment. It has set up a viable business model by developing, engineering,purchasing, overseeing construction and operating the solar panel arrays in-house. Through a directownership approach, UPS said it has found a way to achieve a strong return on investment in currentand future developments. A typical model is to outsource roof space for solar panels to athird-party in return for discounted energy rates for 20 years. UPS decided to finance and buildits own solar projects following a drop in solar panel installation costs, continued improvementsin the technology and the availability of supportive government incentives.
“Federal and state government incentives encouraged our investments in solar energy sources,”Steve Leffin, director of global sustainability at UPS, said. “We develop, engineer, own andoperate our solar capacity, which is a departure from contracted power-purchase agreements in whicha company pays a solar power provider for a set price of electricity for 20 years. Under thisarrangement, we not only benefit at UPS, but can also help community power grids by providing ahedge against possible energy price hikes during peak usage times.”
New Jersey is the state with one of the most progressive solar energy policies in the USA andcurrently second in the country in terms of total installed capacity of solar energy technology,according to the company.
