PEPSI COLA PRESS RELEASE
Generated by the Energy Trust of Oregon on December 14, 2004
Pepsi Cola of Klamath Falls unveils 172 kilowatt solar electric system for ‘net zero’ energy use Tax credits, incentives, utility agreements make Northwest’s largest solar array a reality
KLAMATH FALLS, Ore. – December 14, 2004— It all started by
updating an out of date lighting system. Pepsi Cola General Manager John
Bocchi decided to improve the energy efficiency of the lighting systems
at one of the company’s facilities in Klamath Falls. When it was all
finished, they had installed the largest solar electric system in the Northwest,
172 kilowatts at three locations — a system that will generate all
of the energy that the facilities will use over the course of a year.
It was a combination of tax credits, financial incentives, attractive loan
terms — and the prospect of eliminating all of their electric bills
— that attracted Pepsi to solar energy. “The tax benefits for
installing a solar electric system are substantial and the prospect of making
all the electricity we need is appealing,” said Bocchi. “I don’t
know why more businesses aren’t taking advantage of this. It makes
financial sense and it’s the right thing to do.”
Pepsi Cola of Klamath Falls is a 50-year-old family owned business. Currently
there are eight siblings with ownership in the company.
The package of incentives and tax credits that closed the deal for the Bocchi
family included $210,000 in financial incentives from Energy Trust of Oregon,
Inc., $444,412 in Business Energy Tax Credits from the Oregon Department
of Energy, an accelerated state and federal tax depreciation schedule and
a financing package from the Oregon Energy Loan Program.
Pacific Power was a valuable partner in making this innovative project a
reality. “We pre-purchased green tags from Pepsi’s solar facility
for Oregon Blue Sky customers,” said Bill Edmonds, Pacific Power’s
director of environmental policy. “That helped provide start-up funds
for the project.” Under the utility’s Blue Sky options, Oregon
customers voluntarily can purchase one of three renewable power options.
“I am sure this is the first of many opportunities to take advantage
of the ample sunlight resources available in Southern Oregon,” said
Vickie Liskey, board member, Energy Trust and Klamath Falls resident. “I’m
so pleased that the Energy Trust has been able to assist in this great energy
savings project here in Klamath Falls.”
“This project shows that solar is more than a clean resource choice
for Oregon’s environment, it’s a good business decision for
Oregon businesses,” said Peter West, director, renewable resource
program, Energy Trust of Oregon. “The Oregon Department of Energy,
Energy Trust and Pacific Power worked together to make this project work
for Pepsi. We hope to see many more projects like this.”
Solar array technology is first in the region
The solar installation is actually three systems in three different locations.
The first completed system is at the company’s warehouse at 1275 S.12th
St. in Lakeview. This 11 kilowatt system features 64 photovoltaic panels
and started generating power in September. Another warehouse at 3930 Miller
Ave in Klamath Falls that the company shares with Frito Lay is 29 kilowatts,
generated by 165 photovoltaic panels. These two systems are net-metered,
so that excess power generated by the system flows back to the local electricity
grid for a credit on Pepsi’s bill from Pacific Power.
The largest installation is at the company’s main office and warehouse
at 4033 Miller Avenue, Klamath Falls. The 132 kilowatt system features building-integrated
photovoltaic technology (BIPV), with 1,042 laminated solar panels that are
literally bonded to the entire metal roof.
“The material used for building-integrated systems is extremely lightweight
and unbreakable, making it a good choice for metal roof structures that
cannot hold the weight of more common framed PV panels,” said David
Parker of Advanced Energy Systems, Eugene, Ore., whose company designed
and installed the system. “This is the best technology available today
to integrate solar panels into a building’s roof. We have created
a solar project which will generate all of the electricity Pepsi needs on
an annual basis to run its operations in Klamath and Lake Counties.”
As a condition of the contract with Energy Trust and the State of Oregon,
all solar electric systems receiving incentives and tax credits must be
connected to the local utility grid. Bocchi estimates that Pepsi will export
about 30,000 kilowatt hours of electricity to the Pacific Power grid per
year after satisfying its own internal loads.
The project contained many firsts, according to Parker. “Pepsi Cola
of Klamath Falls has now taken the lead in the Pacific Northwest by installing
172 kW of solar electric panels on three commercial buildings. Plus, it
has installed the largest individual system at 132 kW and the largest building-integrated
photovoltaic system in the region, being a pioneer for this revolutionary
solar technology to be adopted on a large scale.”
Energy Loan Program, energy tax credits help fund project
The Oregon Department of Energy’s State Energy Loan Program is providing
a $950,000 loan to finance the project over six years. Business Energy Tax
Credits are also available to help offset the cost of the investment in
renewable energy technologies.
“The owners show great concern for the environment in installing this
solar electric project,” said Hal Simms, loan officer with the Oregon
Department of Energy’s Loan Program. “We are pleased that we
can assist and look forward to helping other business owners with their
renewable energy projects.”
The Energy Loan Program provides low-interest, fixed-rate loans for projects
that promote energy conservation or renewable energy resources. Since the
program’s first loan in 1981, it has financed 606 projects for $315
million. The Energy Loan Program issues state general obligation bonds and
borrowers pay for the cost of the program.
Lighting retrofit started the energy savings ball rolling
In August, the company completed a lighting retrofit at their main warehouse
in Klamath Falls that will save more than 30,000 kilowatt hours of electricity
each year, worth more than $1,800 on the firm’s annual electric bill.
For this energy measure, Pepsi received an Energy Trust incentive of nearly
$2,000 and Business Energy Tax Credits of more than $2,300, enabling a payback
of just over one year for the improvements.
“Combined with the energy efficiency upgrade to the lighting system,
the building reached a remarkable benchmark. On an annual basis, the sunlight
on the building’s roof will produce as much electricity as the building
uses,” said Christopher Dymond, energy analyst with the Oregon Department
of Energy.
“When I went to the Energy Trust website for information about the
lighting program, I clicked on ‘solar incentives,’ thinking
that it might be a good idea for my home here in Klamath Falls,” said
Bocchi. “One thing led to another and now we have a great solar electric
system, good tax benefits and we’ll be exporting excess electricity
to the grid.”