Prologis SolarSmart is an easy way for Prologis’ customers to take control of their energy expenses and realize the benefits of onsite power for their warehouse operations. Customers agree to buy power generated on-site at or below local utility rates, and only during their lease term. There is no upfront expense for customers, and no lengthy power agreements that extend past lease expiration. Prologis, the world’s leader in logistics real estate, delivers Prologis SolarSmart as a turnkey solution for customers.
No capital investment is required from our customers. Customers pay for the power generated through the Prologis SolarSmart program, in addition to the power they continue to consume from the local utility. All solar construction and maintenance costs are covered by Prologis.
Solar has historically not been possible in most leased industrial facilities. Prologis is changing that by proactively offering Prologis SolarSmart at suitable facilities (for example, those with newer roofs) in markets where solar is economical. Prologis SolarSmart viability requires a feasibility assessment as a first step where Prologis evaluates customer interval data. Today, customers in California and New Jersey are best suited to participate in Prologis SolarSmart, and we’ll expand to new markets soon.
4. Can I get renewable energy credits for the solar power I consume?
In some locations yes, in others no. Solar approvals and financing can be complex. Where possible, namely California, Renewable Energy Certificates (RECs) can be provided to Prologis SolarSmart customers, if requested, while in New Jersey, the RECs are retained by the local utility based on the regulatory framework. Participating customers will be using onsite energy for a portion of their consumption instead of grid power.
5. How will this impact my current electric utility account and service?
Rooftop solar installations are typically connected to the local utility grid; we are not taking buildings “off grid.” The solar system will operate during the day, offsetting power from the grid. Your current utility connection will remain for reliability, evenings and consumption above the solar output. Customers’ existing utility accounts will remain in-tact. The solar power is an add-on to the existing utility connection. Therefore, customers will receive a standard electricity bill and a secondary solar bill posted to their Prologis account ledger.
6. What is the typical contract term? What happens at the end of the contract term?
The Prologis SolarSmart agreement, a simple lease amendment, will be co-terminus with your lease. You only pay for energy used while you occupy and/or legally possess the space. We leverage our long-term approach to building ownership to unlock solar to deliver value for our customers, stakeholders and the planet.
The entire process is managed by Prologis! Most solar work takes place on the roof, in electrical rooms and outside of your operating space. Finally, a brief power outage will be required to connect the system and start delivering power savings to the building. We will carefully coordinate with you to plan construction activities and minimize this disruption.
Solar is a proven technology that will produce power for decades. Regular inspections, preventive maintenance and scheduled cleanings will keep the system running well. The remote monitoring system will promptly send alerts for issues and provide visibility into how the system is performing.
9. What is the process to become a Prologis SolarSmart customer?
The process begins with sharing your energy usage (interval data) by contacting your utility company to have them send you “interval data” in an excel format or by sharing your information through this portal (not all utility companies allow this action). Once we receive this information, it will take us 7-10 business days to review usage and make a recommendation on system sizing, solar cost per KWh, and the overall economics of the opportunity. We will present you with a proposal that reviews the design, economics and process. If you desire to proceed from there, the Prologis SolarSmart Agreement is a couple paragraph lease amendment to commence with the project.
10. If I have a billing concern, who do I contact?
Your property manager is still a customer’s first and best point of contact for billing and electricity concerns. Supporting their effort is a team of dedicated energy professionals on staff at Prologis. Together, we can ensure your system functions as intended and billing is quick and accurate.