Tiffany’s decision to go with PowerLight and its PowerGuard interlocking system was influenced by the system’s lightweight
design, high energy output efficiency rating, a
full 25-year replacement warranty and acceptance by the company’s insurance
underwriter.
Tiffany & Co. Sparkling in Solar
Tiffany & Co., known for its fine silverware and
jewelry, also sparkles when it comes to alternative energy, with the
recent installation of a 1.3 megawatt solar power system on two of
its distribution centers.
By Vicky Boyd
Mention the name Tiffany & Co. to someone and
chances are one of the world’s premiere jewelry companies quickly
comes to mind, followed shortly by high-quality products and a
trusted purveyor of wares.
Since the New York City company was founded in 1837
by Charles Lewis Tiffany and John B. Young as a stationer and fancy
goods emporium, it has created a 170-year legacy of style. Central
to the company’s growth has been corporate environmental and social
responsibility. In fact, Tiffany & Co. leaders consider
sustainability their most precious quality.
So it is only fitting that Tiffany & Co. followed
that same philosophy when it decided to have SunPower Corp. of San
Jose, California, install a 1.3-megawatt solar-power system on two
of its New Jersey distribution facilities. As part of the project,
lights in the two buildings were upgraded to more energy efficient
fixtures. Together, the improvements are expected to net the company
nearly $500,000 in annual energy savings.
"Integrating solar power into our energy portfolio
is one step in our efforts to help impact the climate change
challenge we are confronting," says Tiffany chairman and chief
executive officer Michael Kowalski. "It is part of our broader goal
of sustainable style, bringing our customers enduring designs while
upholding our commitment to help protect the beauty of the natural
world and to responsibly use the natural resources it provides."
The planning phase began within Tiffany & Co. about
a year before internal approval was granted, and it contracted with
SunPower, formerly known as PowerLight, says Larry Palfini, Tiffany
vice-president of global construction and property management
services.
"After much research and comparison, our decision to
go with PowerLight and its PowerGuard interlocking system was
influenced by the following factors: its lightweight design, high
energy output efficiency rating, a full 25-year replacement
warranty, and above all, acceptance by Factory Mutual, our insurance
underwriter," Palfini says.
The project involves Tiffany’s 266,000-square-foot
customer fulfillment center in Whippany, New Jersey, and its
374,000-square-foot retail service center in nearby Parsippany, N.J.
In early 2005, SunPower conducted an energy audit of
the two buildings, which is standard procedure for all projects, says Tom Leyden, managing
director of SunPower’s East Coast operations in Trenton, N.J.
"We look for other energy efficiency measures we can
make," he says. "We like to combine onsite efficiency with solar."
In the case of the two buildings, it meant changing
about 400 metal halide fixtures over to 1,500 high-output
fluorescent fixtures with electronic ballasts. "That cuts the cost
of lighting by 50 percent, and lighting in these buildings is a
pretty high cost," Leyden says. "In fact, the energy efficiency
savings is almost the same as the output of the solar."
Rowe Electric Inc. of Ringoes, N.J., completed the
work during off hours, so none of the operations at either facility
were disrupted, Palfini says.
Leyden says SunPower recommended PowerGuard solar
tiles because they have a lightweight, building-integrated assembly
that can be easily installed over existing roof membranes.
"There was no modification whatsoever," Leyden says.
"This product goes together like a puzzle, so we can work around
obstacles on the roof as long as we have room on the roof. And we
can pretty much go on any roof."
The interlocking tongue-and-groove assembly allows
the system to resist wind uplift without roof penetrations.
In addition to generating electricity, the panels
help insulate the roof, reducing heating and cooling costs. They
also shield the membrane from ultraviolet rays and thermodegredation,
prolonging the roof’s life.
The solar modules within the panels are manufactured
by Sharp and SunPower and have an output warranty of 25 years,
Leyden says. The design life is at least 30 years.
The panels are also virtually maintenance free, he
says. "In the case of the East Coast, there’s enough rain that will
wash off any soilant you get on the modules," Leyden says.
The Whippany facility system involved 61,000 square
feet of PV surface area—3,262 solar tiles—and has a peak capacity of
678 kilowatts. The Parsippany facility involved 66,000 square feet
of PV surface area—3,150 solar tiles—and has a peak capacity of 655
kW.
Tiffany’s Whippany facility system involved 61,000 square feet of PV surface solar tiles—and has a peak capacity of 678 kW.
The Parsippany facility involved 66,000 square feet of PV surface area—3,150 solar tiles—and has a peak capacity of 655 kW.
The panels convert sunlight into direct current
electricity, which runs through Xantrex PV Series inverters to
convert it to alternating current. The AC then flows into the
building’s service panel. The systems together are designed to
generate about 30 percent of the facilities’ electrical load at peak
demand.
Jersey Central Power & Light Co. of Morristown
serves the two facilities, and Palfini says Tiffany & Co. enjoys
energy savings by using about 30 percent less commercially produced
power.
Both Tiffany solar systems began generating
electricity during the summer of 2006, but weren’t officially
dedicated until this past April.
Palfini says Tiffany & Co. officials have been
extremely satisfied with the solar systems’ performance, "which are
exceeding our expectations and returning higher than anticipated
savings."
New Jersey’s Clean Energy Program played a
significant role in Tiffany & Co. deciding to move forward with the
project, Palfini says.
The Customer Onsite Renewable Energy program offers
rebates to projects up to 700,000 watts in size. That’s why the
solar system on each facility was treated separately, Leyden says.
Commercial projects ranging from 500,001 to 700,000
watts receive rebates of $2 per watt, according to the September 1,
2006 rebate schedule. During 2006, New Jersey’s Clean Energy Program
provided more than $20.7 million in rebates for 1,001 solar
projects.
The rebates are the result of the Electric Discount
and Energy Competition Act that the New Jersey Legislature passed in
1999. In addition to deregulating the industry, the bill established
funding for the Clean Energy Program.
Utilities are assessed a "social benefits charge" at
the point of use for electricity and natural gas. The New Jersey
Board of Public Utilities in Newark requires that no less than 50
percent of the fees go toward energy efficiency programs and 25
percent go toward renewable energy projects.
Although the roofs of both of Tiffany’s buildings
have space for additional PV panels, Leyden and Palfini say the
Clean Energy Program’s rebate schedule was the limiting factor in
the projects’ size.
"We’re currently evaluating whether to increase the
capacity of our existing solar system," Palfini says. "The limiting
factors are that the maximum renewable energy rebates have already
been granted for our installations, and the cost of increasing the
existing capacity of these systems may be cost-prohibitive."
"Now if something changes in the future and there’s
an additional strong incentive to invest more, they can do
that—there’s extra roof space," Leyden says.
In addition, Tiffany & Co. is able to sell solar
renewable energy credits (SRECs) based on the amount of energy the
systems generate. The SRECs are part of aggressive renewable energy
portfolio standards established by the New Jersey Board of Public
Utilities. By 2021, 22.5 percent of the electricity delivered to
retail customers in the state must come from renewable sources. Of
the renewable energy, 2.12 percent must be specifically from solar.
Energy companies have three options: they can build
their own renewable generation facilities; they can pay a
30-cent-per-kilowatt penalty; or they can buy Renewable Energy
Credits (RECs). Nearly all choose to buy RECs. Unlike carbon
credits, which are traded on the Chicago Climate Exchange, SRECs are
traded between willing buyers and sellers, Leyden says.
SunPower works with its customers to aggregate the
SRECs and negotiate prices and terms for them. By combining the
SRECs into larger lots, Leyden says SunPower is able to obtain
better prices. Energy suppliers also prefer the system, since they
are working with fewer, but larger, lots.
The New Jersey Clean Energy Program doesn’t track
individual trades. But it does keep track of the total number of
SRECs issued and traded to ensure they accurately represent the
amount of renewable energy that is generated.
During May of this year, 3,375 SRECs were traded,
with prices ranging from $150 per MWh to $265 per MWh, according to
the Clean Energy Program. From June 1, 2006, through May 31, 17,705
SRECs had been traded with a cumulative weighted average price of
$217.96 per MWh.
For the reporting year, which ended May 31, a total
of 31,635 SRECs had been issued.
Leyden credits New Jersey’s aggressive renewable
energy portfolio and attractive rebates for the larger number of
solar systems that have been installed in the state. He says three
factors contribute to a strong solar market: "How much sun is
available, the cost of electricity that we are displacing and
incentives.
"In Hawaii, for example, there’s lots of sun, very
expensive electricity and modest state tax credits, but it’s good
enough to create a market there.
"In New Jersey, the sunlight availability is less
than Southern California, but the cost of electricity is high and
the incentive is strong."
The states of Maryland, California, Pennsylvania,
Colorado, Nevada, Texas and North Carolina are also in various
stages of developing renewable energy standards and incentive
programs. As other states follow, Leyden says the demand for solar
will accelerate.
"The market is limited by just what incentives are
available in just these few states," he says.
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