Major Retailers See Business Sense in Going Solar

Target, Whole Foods, Costco, Kohl’s, Walmart, and other major retailers would not invest tens of millions of dollars - or more - in solar power for their stores if it did not make financial sense.

These household names are embracing solar in a big way. In March, Whole Foods announced plans to install rooftop solar photovoltaic systems at up to 100 locations. The Austin-based grocer and lifestyle brand already has solar installed at 20 of its 439 stores.

California is among the states where Whole Foods stores will get solar power, though individual locations have not been identified publicly.

The goal is rooftop solar units in every region, Kathy Loftus, Whole Foods' global leader for sustainability, told the Los Angeles Times in an interview.

"We think this is a good way also to be protecting against potential future energy cost increases," Loftus told the newspaper. "We’re doing what’s right for the environment, but we’re also doing what’s right for the business.”

Whole Foods is in good company. Minneapolis-based Target wants to increase the number of buildings with rooftop solar panels to 500 by 2020. By the end of 2016, the retailer will have added solar arrays to 180 stores and distribution centers in 12 states, including California, Arizona and Texas. The average array will have 1,700 panels and produce 20 to 30 percent of each store’s electrical needs.

Separately, Target is investing up to $24 million to equip 30 retail outlets in North Carolina with solar panels.

Top retail stores that went solar this year

© 2015 SEIA seia.org/solarmeansbiz

Commercial solar widely accepted and bankable

Big Retail’s embrace of solar PV has important implications. As the market and technology has matured, solar is now widely accepted as investment with low risk and big returns. A typical commercial solar installation, for example, pays for itself within five years.

“This is a proven technology,” says John Hoffman, Managing Partner of SunGreen Systems. “This is a bankable product that has passed the litmus test, not just for financial reasons but also because it is good for the environment, improves a company’s reputation and increases customer goodwill.”

Banks are willing to make loans because they see commercial solar as a low-risk investment. Plus, solar companies, including SunGreen, that work with retailers, manufacturing and other sectors can help arrange financing.

Extension of the 30 percent tax credit for commercial solar projects makes the investment even more attractive, Hoffman says.

“It is a proven technology that is reliable - the sun comes up practically everyday in Southern California,” he says.

Big Retail Leads Way for Commercial Solar at Smaller Outlets

C-Suite decision makers at Whole Foods, Target, Walmart and other big retailers signal to mid-size and smaller players in retail that solar has arrived.

The Solar Energy Industries Association (SEIA) also says retail has been the largest sector adopting commercial solar.

“Large retailers have seen perhaps the most consistent and steady growth over the years as they typically have a similar building structure, which allows them to make large solar installation deals for multiple locations throughout the country,” SEIA said in “Solar Means Business 2015: Top U.S. Corporate Solar Users.”

Indeed, retailers held the top five spots when ranked by number of on-site solar PV installations. Walmart, which added 75 installations in 2015 alone, topped the list, followed by Walgreens, Kohl’s, Target and Costco.

The report also cited major solar investment by Safeway, IKEA, Macy’s, Lord & Taylor and JCPenney.

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