Tioga says BJ's will be able to hedge against future price uncertainty for electricity with its solar power systems

Wholesale retailer BJ’s is set to add to its solar generating portfolio with the installation of four solar photovoltaic systems at stores in Massachusetts and New Jersey.

BJ’s Wholesale Club, which has its head office in Natick, Mass., already has 12 rooftop solar installations in six states, but has now agreed a partnership to expand its portfolio.

Renewable energy specialist Tioga Energy is already developing two more rooftop systems for BJ’s – a 308kW system for in Leominister, Mass., and a 344kW system for South Attleboro in the same state. The systems are due for completion next month.

Two more projects are to be developed in New Jersey for completion this summer, providing 409kW and 500kW of generating capacity.

Bedford, Massachusetts, solar company Spire Corporation is carrying out the construction for the projects.

BJ’s, which runs 187 clubs and 105 gas stations in 15 eastern states, should see its overall generating capacity up to more than 2 megawatts (2,000kW) once all the systems are complete.

Hedge

Kevin Moran, Manager of Energy at BJ’s Wholesale Club, said: “Since the 90’s BJ’s has taken the smart business strategy of lowering electricity costs through solar power and energy efficiency. With Tioga Energy as a partner, we are able to take our commitment to solar to the next level, while managing first-cost installation hurdles and providing a hedge against future rate increases.”

Power from the new systems will be sold through a “SurePath Solar PPA” power purchase agreement with Tioga, which will see no up-front costs to BJ’s. Tioga will manage the systems with BJ’s paying only for the electricity produced by the systems.

The systems should provide 22% of the buildings’ electrical needs.

“Energy pricing represents a significant overhead expenditure for retail outlets, and leaves them susceptible to monthly variability,” said Paul Detering, CEO of Tioga Energy.

“As electricity rates continue to rise, Tioga’s PPA model enables organizations to more effectively budget with predictable pricing and go solar without diverting funding away from core operations.”