Dive Brief:
- New York Governor Kathy Hochul announced that the state has completed its largest solar rooftop project to date, installing 17,000 panels atop the roof of Medline Industries’ distribution center in Montgomery.
- The 7.2-megawatt community solar project is expected to power over 1,600 homes and reduce energy costs for both the company and residents in the Mid-Hudson region.
- The project highlights New York’s increasing collaboration with local residents and private businesses on community solar projects, as the state aims to drive further energy cost reductions.
Dive Insight:
Medline Industries is the nation’s largest privately held medical products manufacturer and distributor. The $8 million community solar project was completed on May 26. The solar panels will generate 8.5 million kilowatt-hours (kWh) of clean power annually, the New York State Energy Research & Development Authority, or NYSERDA, said in a news release.
Community solar projects are intended to provide homeowners and renters access to clean energy without installing rooftop panels on their homes. Residents who subscribe to the Medline community solar system can receive credits on their electricity bill for an estimated 10% in monthly savings, according to Hochul's announcement.
The project completion supports New York’s goal of installing six gigawatts of distributed solar by 2025, and 10 gigawatts by 2030, as outlined in its Climate Leadership and Community Protect Act. In exchange for a commitment to retain 344 jobs and create 266 new roles, Empire State Development also awarded Medline up to $10 million in Excelsior Jobs Tax Credits.
The project garnered over $3 million from NYSERDA through NY-Sun, a state initiative that aims to scale solar power by driving down costs and making solar energy more accessible to homes, businesses and communities. The initiative has slashed the state’s solar costs by 72% and facilitated solar growth of more than 3,000%, bolstered by more than $7.4 billion in private investments since its inception in 2012.
Over 4,600 MW of distributed solar are in operation in New York, and almost 3,500 MW are in late-stage development. This has contributed to New York becoming the nation’s largest community solar market in 2022, comprising almost half of all community solar capacity in the U.S.
“Rooftop solar will play a key role in reaching New York State's renewable energy goals, and it is because of programs like NY-SUN that we saw a 49 percent increase in rooftop solar installations over the last year,” Didi Barrett, Assemblymember of New York state District 106, said in the release.
Medline subsidiary PowerFlex, which is developing the project, invested nearly $5 million to facilitate its fruition. PowerFlex provides solar, storage and electric vehicle charging solutions for commercial U.S. customers.
Medline’s facility, which opened last August, hosts more than 700 employees and distributes products to healthcare providers such as hospitals, nursing homes and ambulatory surgery centers. The facility will utilize 40% of the clean energy generated from the solar project, with the remaining 60% available for approximately 600 residents.
Noah Ginsburg, executive director of New York Solar Energy Industries Association, said in the release that the rooftop community solar project provides state manufacturers and industrial businesses opportunities to strengthen their profitability. He also pointed to electric bill savings New York residents can achieve through solar generation.