Company enters into an agreement to install solar panel systems on 25 of its stores which are expected to generate more than 2,000,000 KWH of electricity.
Safeguard Self Storage entered into this $6,700,000 deal today in the New York and New Jersey markets and expects the first installations to be operational in late summer 2014 and all of them to be operational by mid-autumn 2014. The Agreement calls for installing solar panel systems on each of 25 stores that are designed to provide at least 95% of the electricity needs of the stores. For all practical purposes, these stores dependency on the "grid" for their power needs will end.
Safeguard currently has 28 open stores in New York and New Jersey - three of these will not have systems installed for the following reasons:
a.) the Thornwood store already has a solar panel system installed and operational (installed by the prior owner of the Thornwood store which Safeguard acquired in 2013),
b.) the Baldwin, New York store's roof was judged not be conducive to the installation, and
c.) the Bronx II store was just recently opened and will have the system installed later.
The West Farms store (under construction in the Bronx) and the Albany Avenue and Bedford Stuyvesant stores (under construction in Brooklyn) will have solar panel systems installed at a later date.
"New York and New Jersey are great first markets for Safeguard Self Storage to invest in solar panel systems because it's cold in the winter and hot in the summer, electricity costs are high and there are meaningful government incentive programs there to entice us to invest," said Allan Sweet, Chief Executive Officer.
"These systems will enable Safeguard Self Storage to breakthrough yet another higher hurdle of profitability for its investor while, at the same time, doing something good for the environment and the communities we serve. We will continue to investigate other markets for which this product might make sense," said Mark B. Rinder, Executive Vice President and Chief Financial Officer.
"This is a terrific step forward for Safeguard Self Storage, saving well over $50,000 per month (after installation is complete in October 2014) and, in addition, shielding the company from the inevitable rate increases the utilities will pass on in the future," said Ken Finlay, Senior Vice President of Operations.
Trinity Solar Systems has installed more than 6,000 systems in the Northeast and presently has solar panel systems in place generating over 85,000,000 KWH of electricity. Trinity Solar recently installed solar panel systems on 23 self-storage facilities in New Jersey owned by an independent operator that is generating about the same amount of electricity that Safeguard Self Storage is expecting to realize from its installation.