Insurers Going Green and Saving Green

Sure, “going green” is good for the environment, but companies that do so also experience cost savings. One such company is Harleysville Insurance. The insurer released a statement estimating that its new rooftop solar photovoltaic system will generate about 15% of the annual energy needs of its corporate headquarters.

The 511.5-kilowatt-peak system, from Tecta America, consists of approximately 47,600 square feet of solar panels that now cover nearly half of the total roof surface of the Harleysville complex. Each of the 1,860 ET Solar 275-watt panels weighs 50 pounds and measures 77 by 39 inches. Together, the solar panels are projected to produce approximately 623,000-kilowatt hours of energy each year—enough to power 62 average Pennsylvania homes.

A significant portion of the project’s $2.8 million cost is being offset by financial assistance from both the federal and state governments. “There’s a 30% federal tax credit—amounting to $840,000—coupled with as much as a $90,000 benefit due to bonus depreciation that will help defray about one-third of our investment,” explained Arthur Chandler, SVP and CFO. “On top of those federal incentives, the Commonwealth of Pennsylvania Financing Authority provided us with a $355,000 solar energy program grant.”

“The benefits to be derived from ‘going green’ are impressive and serve to underscore Harleysville’s commitment to the preservation of our environment and conservation of our natural resources,” noted Michael Browne, Harleysville president and CEO.

In addition to contributing to a healthier environment, Andrew Shields, assistant secretary and director of facilities services, expects long-term energy cost savings for the company to result from the solar project. “Because the system will generate about 15% of our annual energy needs at a fixed cost, we expect both cost savings and protection from rate increases on some of our power costs,” he noted. “In fact, we expect to re-coup our overall investment within the first seven years of operation.”

Coupled with the installation of the new solar energy generation system, Shields noted that other major environmental projects completed at the Harleysville headquarters have resulted in total energy cost reductions of 25% since 2008. Those projects include an ice storage and air conditioning system installed in 2009, as well as various upgrades to lighting, heating, ventilation and air conditioning controls.

“We are especially pleased with the collective results of our efforts to reduce energy consumption during the peak hours of the mid-afternoon,” said Shields. “In addition to reducing our annual total building load from 6 million kilowatt hours to 4.5 million kilowatt hours, these initiatives also assist the local and regional power grid meet their growing demands.”

Munich Reinsurance America (Munich Re) announce plans for a 2.5-megawatt solar power system at Munich Re's Plainsboro, N.J., facility. SunPower Corp. will install high-efficiency solar panels on a carport structure that will provide shade for the facility's parking lot. The insurer expects this to reduce annual electricity costs by almost $500,000, while reducing its annual carbon footprint.

Construction on the system will begin this year, and it will be operational in the second half of 2012. Munich Re will sell the solar renewable energy certificates (SRECs) and environmental benefits associated with the system, enabling the regional utilities to meet their renewable portfolio standard requirements.

Munich Re adopted a carbon-neutral strategy for its reinsurance activities. The company achieved carbon neutrality in its Munich headquarters in 2009, and targets 2012 to be carbon neutral throughout its worldwide reinsurance group operations. "The success of our core business is inextricably linked to environmental protection, so a sustainable approach is an indispensable component of our business strategy," said Tony Kuczinski, president and CEO of Munich Reinsurance America. "With the benefit of SunPower's experience and technology, our solar carport system will maximize the solar power generated onsite, optimizing our savings and reducing the need for the public utility to burn fossil fuel. It's good for business, our community and the environment."

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