Developers Diversified Realty announced an income-producing solar energy program in partnership with SunEdison, North America’s largest solar energy services provider.
The program will enable Developers Diversified to incorporate solar photovoltaic (PV) systems through a multi-phase deployment at the company’s shopping centers, starting with those in California, Colorado, New Jersey and Puerto Rico. As part of the long-term partnership, SunEdison has the option to develop solar energy systems at hundreds of Developers Diversified’s shopping centers in the United States and Puerto Rico.
“This program is part of our continued commitment toward sustainability and energy efficiency at our assets,” said Daniel B. Hurwitz, president and chief operating officer at Developers Diversified. “With a portfolio our size, the impact that energy savings can have on the environment and for our tenants is significant.”
Once a system is operational, Developers Diversified will be able to purchase energy for common area uses. In addition, shopping center tenants can benefit and realize energy savings by opting to purchase the power generated by the solar systems at rates less than retail energy rates. Developers Diversified will receive significant rental stream from the program by converting unused rooftop space into a revenue-generating asset.
“We’re excited to announce this energy program, which will enable us to offer predictably priced electricity to our tenants. We are committed to solar wherever it makes economic sense for our tenants,” said John S. Kokinchak, Developers Diversified’s executive vice president of property management. “Solar energy has numerous advantages: It is clean, cost-efficient and environmentally-friendly.”
The solar PV systems will produce renewable energy without generating noise, pollution or greenhouse gases. A solar energy system deployed to one of Developers Diversified’s shopping centers will avoid an estimated 10 million pounds of carbon dioxide pollution, as well as significant amounts of nitrous oxide and methane pollutants.
“Developers Diversified is a forward-thinking real estate company — bringing clean solar energy to its properties for the benefit of its tenants and the environment through the largest option agreement and distributed generation program of its kind. It’s a way for Developers Diversified and its tenants to reduce operating costs and generate additional revenue,” said Brian Jacolick, general manager, Americas for SunEdison.
Developers Diversified Realty currently owns and manages approximately 720 retail operating and development properties in 45 states, plus Puerto Rico, Brazil, Russia and Canada, totaling approximately 159 million square feet. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company that acquires, develops, leases and manages shopping centers. Additional information about the company is available on the Internet at www.ddr.com.