Project Profile

Greenskies Renewable Energy LLC developed a 1.4MW solar power project for Wal-Mart Stores East LP, the real estate holding entity of Wal-Mart, using a PPA model backed by the full faith and credit of Wal-Mart Stores Inc., the parent company.  The project was completed in November of 2011 and consists of four arrays on three Wal-Mart stores and one Sam’s Club store in New Jersey. 

Description

The Wal-Mart Pilot Project was specifically designed to establish a level of trust and communication between Greenskies and Wal-Mart. It was an opportunity for both partners to understand the way the other firm operates, and to establish the documentation, lines of communication and expectations that now serve as the foundation of a lasting relationship between the two. 

Challenges

The first challenge Greenskies had to overcome was to earn the right to do business with the world’s largest company through direct competition with the solar industry’s top tier, publically-traded firms. Greenskies simply outworked and outperformed the competition. Wal-Mart had chosen Greenskies because we exemplified a level of determination and sound business practices which our competitors did not. As a result, Greenskies had earned a pilot project with Wal-Mart, which through impeccable execution, was granted the right to remain Wal-Mart’s renewable energy partner in the Eastern U.S. 

Another challenge for the project was securing a credible contract for the sale of SRECs produced by the solar plants. Greenskies refused to proceed with project financing without a fixed investment-grade Offtaker for 100% of the SRECs produced by the four pilot projects for the duration of the PPA. Any un-contracted SRECs did not figure into the financial analysis. To overcome this conservative financial position, Greenskies bid competitively on 10-year SREC contracts with the local electric company, Jersey City Power & Light, and won. 

Approach

Once the PPAs were in hand, SREC contracts had been executed, financing had closed and engineering was complete, Greenskies looked to Centerplan Construction to see the construction of the project through to commissioning. Centerplan began their role in the project by selecting multiple teams of professional solar installers via a competitive bidding process and an exhaustive due diligence process. Once solar installers were selected, they went through mandatory safety and installation training with Centerplan’s project Superintendents in order to build functioning work chemistry and to confirm that the individuals working on project sites were trained according to Centerplan’s high standards. Next, they worked with the engineer of record, BL Companies, through a complete materials submittal process. Once the quality of the installation staff and materials was approved by all parties – the approval process and construction commenced. 

Results

Wal-Mart gained access to over 1,800,000 kWh of clean renewable energy at reduced generation, transmission and delivery rates.

Wal-Mart gained appreciation from their customer base for making a sincere and tangible effort to improve the local economy and environment.

Greenskies and the SPEs who owned the projects enjoyed profits and tax benefits.

Liberty Bank, the senior debt provider, enjoyed an immaculately structured deal with investment-grade off-takers for both the electricity and SRECs produced by the system.

Over 60 New Jersey tradesman from four solar energy firms, including two union firms, enjoyed significant solar contracts at a reasonable pay rate.

The environment will benefit from 1.4MW of coal-produced electricity no longer needed by Wal-Mart.

Centerplan proceeded to complete all four installations in fewer than 12 weeks. Wal-Mart’s construction management staff was so impressed; they asked Greenskies is we would allow them to make a time-lapse video of the installation to share with their less efficient installers simultaneously constructing solar projects in California. We were more than happy to oblige. 

Overall, this project was immensely successful for all parties involved.