Rooftop Renewable Energy Program Discounts Price of Power for Retail Tenants

August 10, 2010
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The first of three solar energy projects planned by North American REIT Kimco Realty Corporation and solar-electric power systems integrator American Capital Energy (ACE) has been completed on the rooftop of North Brunswick Plaza in North Brunswick, N.J. The solar energy projects, which include the completed 800kW photovoltaic (PV) solar rooftop array at the Kimco-owned shopping plaza, are part of a renewable energy program to develop, own, and operate commercial-grade rooftop solar systems at select shopping centers owned by the REIT.

The program generates income through the contractual sale of solar electricity to the building’s retail tenants and selling solar renewable energy credits (SRECs) to third-party compliance and voluntary market buyers. As the system owner, Kimco is able to install the PV arrays on selected rooftops and sell the power back to its tenants at a fixed and discounted price--reducing future pricing volatility. Additionally, Kimco can provide its tenants with shorter power purchase agreements versus traditional 20-year agreements.

The renewable energy program enables Kimco to reduce operating costs for tenants while still maintaining full control of its rooftops. More importantly, Kimco’s renewable energy program facilitates the advancement of its green initiatives and sustainability programs and promotes solar as a viable alternative to grid power in the shopping center business. ACE managed all engineering, procurement, and installations of the North Brunswick solar rooftop array.