Direct Energy and SolarCity to provide solar energy to first commercial customer via new fund
Direct Energy, one of North America’s largest energy and energy-related services companies, and SolarCity® (Nasdaq: SCTY), America’s no. 1 full-service solar power provider, announced today that they will provide solar electricity to a club location of BJ’S Wholesale Club, a leading operator of warehouse clubs in the eastern United States. SolarCity will install solar panels at BJ’s North Brunswick, New Jersey location at little to no cost, and BJ’s will pay for the solar electricity produced at a discount to current energy rates.
BJ’s North Brunswick location is the first customer to benefit from Direct Energy and SolarCity’s new collaboration to provide solar electricity directly to businesses, which can make it possible for businesses to pay less than current rates for clean power*. The companies are providing the BJ’s club with solar electricity through a 20-year power purchase agreement (PPA), which is part of the dedicated investment fund capable of financing up to $124 million in solar projects created by Direct Energy and SolarCity last month.
SolarCity’s initial design for the 110,000-square-foot BJ’s Wholesale Club features more than 1,600 panels to provide approximately 400 kilowatts of generation capacity. Based on the current design and the historical energy usage at the North Brunswick BJ’s site, SolarCity expects BJ’s to pay more than 10 percent below current utility rates for solar electricity and to save hundreds of thousands of dollars over the life of the agreement.
BJ’s Wholesale Club has already realized the benefits of solar with various installations at sites in six East Coast states. In fact, the North Brunswick location is the 18th installation in the BJ’s Wholesale Club chain.
“Direct Energy and SolarCity made this decision a no-brainer for us,” said Kevin Moran, manager of utility and energy services at BJ’s Wholesale Club. “We’ll experience immediate savings with our new solar power system, and will continue to enjoy the benefits for two decades – a great solution to the growing costs of powering large clubs like ours.”
“Solar is a viable opportunity that positions Direct Energy Business as a total energy management service provider for commercial and industrial customers,” said Paul Dobson, acting president of Direct Energy Business. “This long-term agreement with BJ’s presents an opportunity for us to expand beyond our core commodity offering and in the process, build a longer-term customer relationship.”
“BJ’s Wholesale has been a supporter of clean energy already, and the North Brunswick installation will allow them to expand their solar electricity generation and save hundreds of thousands of dollars in the process,” said Lee Keshishian, SolarCity’s regional vice president on the east coast. “Direct Energy has wasted no time helping to make solar more accessible and affordable to its commercial and industrial customers. We expect this to be a great partnership.”
*Please note this is not a guarantee for future energy costs.
Direct Energy is North America’s largest provider of heating & cooling, plumbing and electrical services and a leading energy and energy-related services provider with over six million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one of the world’s leading integrated energy companies, Direct Energy operates in 46 U.S. states plus the District of Columbia and 10 provinces in Canada. To learn more about Direct Energy, please visit www.directenergy.com.
This release contains forward-looking statements including, but not limited to, statements regarding the number of organizations that can pay less for solar electricity, the value of the projects that will be financed and the benefits to BJ’s Wholesale Club, SolarCity and Direct Energy. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. You should read the section entitled “Risk Factors” in SolarCity’s registration statement on Form S-1, which has been filed with the Securities and Exchange Commission and identifies certain of these and additional risks and uncertainties. SolarCity does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
SolarCity® (NASDAQ: SCTY) provides clean energy. The company has disrupted the century-old energy industry by providing renewable electricity directly to homeowners, businesses and government organizations for less than they spend on utility bills. SolarCity gives customers control of their energy costs to protect them from rising rates. The company offers solar power, energy efficiency and electric vehicle services, and makes clean energy easy by taking care of everything from design and permitting to monitoring and maintenance. SolarCity currently serves 14 states and signs a new customer every five minutes. Visit the company online at www.solarcity.com and follow the company on Facebook & Twitter.
For more information on: SolarCity