EAST RUTHERFORD, N.J.—Distributed Sun LLC (D-SUN), a Washington, D.C.-based solar project developer, owner and operator, announced it has signed a 20-year, 1.1-megawatt power purchase agreement (PPA) to generate solar electricity for the Sheraton Meadowlands Hotel & Conference Center. In the first of several megawatt-scale, commercial solar projects to be commissioned in 2011, D-SUN will construct and operate a solar powered carport facility in partnership with The Buccini/Pollin Group (BPG), the owner of the property, and Pollin/Miller Hospitality Strategies, Inc. (PMHS), the property manager. The solar system will be owned by Distributed Sun’s Solar Energy Investment Company (SEIC), sunTWO, and combines clean, on-site power with architectural-grade, shaded parking and green power savings, generating more than 1.2 gigawatt hours of electric power per year, and more than 40 gigawatt hours over its lifetime.
“We are very excited to expand our partnership with The Buccini/Pollin Group,” says Jeff Weiss, managing director of Distributed Sun’s SEICs. “This project marks another milestone in the relationship, demonstrates the company’s long-term view with—and commitment to—our trusted real estate partners, and further proves the unique benefits of our replicable and scalable business model.”
D-SUN’s solar services to BPG and PMHS are widely considered to be much better for the environment than conventional energy—offsetting an estimated 75 million pounds of CO2, or the equivalent of removing more than 6,500 cars from the road. Solar power from D-SUN also costs the Sheraton less per kilowatt hour generated than the electricity it buys from the grid, and under contract terms that guarantee savings for PMHS will grow each year, compounding for 20 years.
Goal is to Green Portfolio
“We have made clear our commitment to having the cleanest, most energy efficient, and most efficiently run, properties in our industry,” says PMHS’ Dave Pollin. “The partnership between PMHS and Distributed Sun at the Hilton BWI Airport, the Sheraton Meadowlands, and elsewhere reaffirms this promise to green our portfolio with best-practice solutions and partners that improve our bottom line.”
As part of the agreement, Distributed Sun has agreed to a capital investment for renovation of the hotel parking lot. In return, the PPA rate schedule adjusts the price per kWh paid on-site until the additional expense is recovered for sunTWO—at a reasonable capital cost to both partners. Even with this incremental cost, the rate schedule can provide the Sheraton solar electricity savings versus the conventional alternative even before this cost is recovered.
“Pioneers and leaders in the commercial real estate industry like Dave Pollin and Chris Buccini recognize that on-site renewable electricity is a game changer,” says Chase Weir, CEO of D-SUN. “Combining capital improvements and increased property values with electricity savings on the one hand, and solar investment returns and a cleaner environment on the other, is a powerful and motivating combination for us and our partners.”
