| Challenge |
- Identify best sites for solar installations from among large, multi-state fleet of retail locations; install systems without impacting day-to-day operations
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| Solution |
- SurePath™™ Solar power purchase agreement with Tioga Energy
|
| Benefits |
- Identify and secure available solar rebates/incentives
- Optimize system design to result in lowest PPA pricing
- Develop rooftop systems without any capital investment
- Allow BJ’s to focus on their core business without distraction
|
| Highlights |
- Projects were completed on time, without any disruption to BJ’s retail business; systems generate an average 15% of the stores’ energy needs and produce energy savings of approximately $45,000 per year
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PROJECT SUMMARY
BJ’s Wholesale Club is the leading membership warehouse retailer in the eastern United States, generating over nine billion in retail sales annually. Running a tight margin business is critical to the company’s success. As early as 2000, the company identified the power purchase agreement (PPA) as an ideal fit for their business model, bringing the energy savings of solar without the attendant costs and complexities.
BJ’s was looking to expand their use of solar to other stores in their fleet. They required an experienced PPA partner who could advise when and where best to build and had the capability to work with minimum impact to core operations. They turned to Tioga Energy.
From a portfolio of nearly 200 BJ’s facilities in multiple states, Tioga quickly identified four sites – two in Massachusetts and two in New Jersey – that offered the most economical PPA options. Working closely with its EPC partner Spire Solar Systems, Tioga then secured favorable government incentives and contracts for the sale of Solar Renewable Energy Credits (SRECs) for these projects, driving down the cost of electricity in the PPAs.
Tioga’s understanding of the SREC market proved especially valuable for BJ’s store in Ledgewood, NJ. Acting quickly to take advantage of the then-new SREC auction at the local utility – Jersey Central Power and Light (JCP&L) – Tioga scaled down the size of the originally planned system. While the smaller system produced less energy, it qualified for the auction and delivered BJ’s even better savings.
