Installed at Seco Tools’ Lenoir City production facility, the system is comprised of 126 Sharp solar modules manufactured in Memphis, using AGC Flat Glass manufactured in Kingsport. Seco Tools was awarded energy grant funding from the American Recovery and Reinvestment Act, which was applied to the total system cost.
The Sharp NU-U235F1 solar modules deployed in this 29.61 kW top-of-pole mount PV system were installed with the support of the Lenoir City Utilities Board (LCUB) and Tennessee Valley Authority (TVA) under the TVA Generation Partners Program. The solar power array is expected to generate 37,067 kWh of clean, emissions-free energy annually -- equivalent to powering more than 3 average Tennessee homes annually.
Green Leadership
“Globally, Seco Tools has focused a great deal of attention on minimizing our impact on the environment,” says Kurt Nordlund, president of Seco Tools, Inc. “The efforts undertaken at our facility in Lenoir City are representative of our company’s dedication to being an industry leader in terms of green production and operation.”
The installation originated when Seco Tools participated in a free energy seminar presented by the Loudon County Economic Development Agency in conjunction with Sam Hart, technology and manufacturing consultant for the Knoxville Chamber of Commerce. The seminar provided an opportunity for participants to ask questions about taxes, grants, and installation and production of solar PV systems.
As a result of this presentation, Seco Tools requested a solar PV financial proposal from solar installer EETN. The resulting technical proposal included design, engineering, cost, grants, available incentives, performance, and return on investment. EETN’s proposal helped Seco Tools make the decision to take a leadership role in renewable energy and environmental stewardship through a clean energy investment made in East Tennessee. As a result, numerous jobs were created or protected because of the variety of grant funding and incentives available.
Partnering for Progress
“In this new economy, companies have to look at ways to become more efficient in their business practices in order to reduce expenses while maintaining quality and competitiveness in the marketplace,” says Pat Phillips, president of the Loudon County Economic Development Agency. “The addition of the solar PV system at Seco Tools provides an excellent example of how investing capital in new technologies can help to achieve a competitive advantage while also protecting the environment.”
Seco Tools’ combination of energy grants paid for 60% of the total system cost, providing clean energy at considerably less cost for the business. Grants included the U.S. Dept. of Treasury Renewable Energy Grant and the Tennessee Solar Institute Installation Grant. The installation of this solar system provided jobs and support to the growing solar energy industry in the state of Tennessee.
Seco Tools is providing clean energy to east Tennessee and making a profit doing so. As a participant in the TVA Generation Partners Program, the company will be paid a premium for the electricity it generates from the solar PV system for at least the next 10 years. Seco Tools’ system is warranted to produce up to 80% of its generating capacity for the next 25 years, and should continue producing power for another 25 years or more beyond that.
The U.S. Dept. of Treasury Renewable Energy Grant will pay 30% of the total cost of a solar PV system, without any cap. This federal grant requires a simple application to be submitted online after the system has been completely installed and commissioned. Businesses investing in renewable energy technology may apply for the grant if they begin construction on their system before December 31, 2011.
The Tennessee Solar Institute Installation grant paid $2 per watt for this 29.61 kW solar PV System. This funding has been fully allocated.
The TVA Generation Partners Program is a 10-year contract between TVA, the local utility, and the business owner. As an incentive to sign up for the program, TVA will credit the business $1,000 on the company’s utility bill. In the contract, TVA agrees to purchase the clean energy produced by the system for the retail rate plus an additional $0.12, effectively cutting the payback of a solar system in half.
Using grants to purchase a solar energy system goes beyond a good business investment. Having undertaken global green initiatives in recent years, Seco Tools was motivated by the opportunity to benefit the environment by producing clean energy.
“Seco Tools’ solar system is a huge accomplishment for both Seco and EETN and is a perfect example of the grant funding at work in the state of Tennessee,” said Harvey Abouelata, VP Sales and Marketing for EETN. “EETN uses Sharp solar panels, which are produced in Memphis, TN, creating and protecting jobs in our state. Additionally, Sharp uses AGC Flat Glass, which is produced in Kingsport, TN, further creating and protecting Tennessee jobs. Our company also benefits from the installation. Seco Tools benefits from a reduction in energy costs. The environment is improved by reduction of pollution and CO2. TVA benefits from a slight reduction in its load. The positive ripple effect is far-reaching, affecting jobs, the environment, and profits, resulting in an all-around victory.”
