The demand for renewable energy continues to grow. More and more, facility leaders are looking for a way to improve sustainability with large-scale solar programs that establish their environmental commitment and provide matching financial rewards. For professionals managing multiple properties, “going green” at one facility alone can be challenging enough. Implementing renewable energy across a portfolio of properties can seem even more daunting.
Consisting of 85+ properties across 19 states, Macerich is a fully integrated, self-managed and self-administered real estate investment trust which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Under the stewardship of Vice President of Sustainability, Jeff Bedell, Macerich continued to fulfill its pledge to environmentally sound practices with the game-changing decision to implement solar across their portfolio.
Clearing the Hurdles
The three main hurdles faced by all facility managers when going solar – financing, implementation, and operations and maintenance – were magnified by Macerich’s substantial portfolio of properties.
Tax equity financing in general is extremely complex, requiring customized transactions tailored to each individual project. Needless to say, creating these unique finance structures for each of the properties served as a main roadblock for Macerich. The question of ownership of the systems was also a major concern. To take adventage of available tax incentives, given the limited tax capacity of Real Estate Investment Trust (REIT) entitites, third-party ownership was crucial.
Twenty Ninth Street Mall, Boulder, CO
In the implementation phase, Macerich was faced with catering to the unique specifications of multiple properties located in a number of states, each with their own permitting and procurement regulations. Some locations had straightforward installation conditions, while others featured spaces that required high-level design and construction expertise. In addition, implementation without interruption to retail business was crucial.
Operations and long-term maintenance of each system posed its own distinctive set of challenges. While there was no shortage of companies available for operations and maintenance at the beginning of the endeavor, there existed a cavernous lack of companies in which Macerich could trust to be dependable, consistent providers of those services for more than two decades across their national portfolio.
While daunting, Macerich was excited to play the role of pioneer in the sustainable development of large REIT portfolios.
The Solar Solution
In response to frustrated expressions of facility leaders managing a broad range of projects, Panasonic, in an exclusive partnership with Coronal Group, developed a turn-key, end-to-end solutions based platform able to directly address finance, implementation, and operations and maintenance concerns.
In 2011, Macerich aligned with Panasonic to begin their REIT power program. With a customized financing structure, Panasonic was able to compensate for Macerich’s lack of tax appetite and support the utilization of the varying federal tax credits and local incentives pertinent to each individual property. Panasonic’s unique comprehensive solution also resolved the issue of ownership, providing the third-party entity responsible for carrying the systems as assets via their relationship with Coronal Group.
With their extensive global network, Panasonic ensured quality implementation for every aspect of each individual project, regardless of location. And, as a nearly 100 year-old, $65 billion company, Panasonic guaranteed its ability to fulfill the 20 year commitment to sustaining expert operations and maintenance of Macerich’s solar systems.
Together, Macerich and Panasonic are nearing the successful installation of solar across 11 shopping centers totaling 10 MW of clean energy – enough power for approximately 10,000 homes.
Related Stories
Energy-Efficient Design | Mar 25, 2022
University of Pittsburgh Releases ‘Pitt Climate Action Plan’
The University of Pittsburgh has released the Pitt Climate Action Plan, detailing how the University will achieve its goal to go carbon neutral by 2037 through investments in clean energy, transportation, efficiency and other areas.
AEC Tech Innovation | Mar 9, 2022
Meet Emerge: WSP USA's new AEC tech incubator
Pooja Jain, WSP’s VP-Strategic Innovation, discusses the pilot programs her firm’s new incubator, Emerge, has initiated with four tech startup companies. Jain speaks with BD+C's John Caulfield about the four AEC tech firms to join Cohort 1 of the firm’s incubator.
Codes and Standards | Feb 18, 2022
Proposal would make all new buildings in Los Angeles carbon-neutral
Los Angeles may become the next large city to ban fossil fuels from new construction if legislation recently introduced in the city council becomes law.
Green | Jan 10, 2022
The future of regenerative building is performance-based
Why measuring performance results is so critical, but also easier said than done.
Sustainability | Oct 28, 2021
Reducing embodied carbon in construction, with sustainability leader Sarah King
Sustainability leader Sarah King explains how developers and contractors can use the new EC3 software tool to reduce embodied carbon in their buildings.
Green | Oct 6, 2021
My reaction to the UN IPCC Climate Change 2021 report: Ugh!
The recent report of the UN Intergovernmental Panel on Climate Change is not a happy read.
Sponsored | Glass and Glazing | Oct 1, 2021
Seizing the Daylight with BIPV Glass
Glass has always been an idea generator. Now, it’s also a clean energy generator.
Wood | Jul 16, 2021
The future of mass timber construction, with Swinerton's Timberlab
In this exclusive for HorizonTV, BD+C's John Caulfield sat down with three Timberlab leaders to discuss the launch of the firm and what factors will lead to greater mass timber demand.
Education Facilities | Jun 4, 2021
Three ProConnect events coming this fall: Sustainability (Nov 2-3), Education (Nov 16-17), Multifamily (Dec 12-14)
SGC Horizon ProConnect 2021 schedule for Education, Multifamily, Office, and Single Family events.
Wood | May 14, 2021
What's next for mass timber design?
An architect who has worked on some of the nation's largest and most significant mass timber construction projects shares his thoughts on the latest design trends and innovations in mass timber.