Developers Diversified Realty sees first fruits of solar power projects
By STAN BULLARD
9:00 am, January 25, 2010
Developers Diversified Realty Corp. (NYSE: DDR) has turned on the switch for the first solar panels in its new national rooftop solar power program. The big shopping center owner said it now is operating its first five solar power projects at centers in Princeton, Hamilton and Union, N.J. The solar panels were installed under a joint venture between Developers Diversified and and SunEdison, a Beltsville, Md., company with a solar program tailored to real estate investment trust. Developers Diversified said it leased roof space to SunEdison and agreed to buy energy for exterior and other lighting at its centers. Marc Feldman, Developers Diversified senior vice president of new business development, said the program benefits tenants because the landlord will be able to reduce expenses for exterior lighting in common areas and provide them with an opportunity to buy some of the solar power that the arrays generate. Moreover, Mr. Feldman said in a prepared statement that the company valued the environmental benefits from using renewable energy without generating pollution or greenhouse gases.
Developers Diversified estimates the five initial sites it has operating and three more that it plans in New Jersey will generate, over 20 years, the equivalent of enough energy to power 2,400 homes for one year.
A Developers Diversified spokesman said it expects the rooftop rental program to produce $1.2 million in revenue in its initial year and $40 million over the initial term of the agreement. He said Developers Diversified expects to use substantially all the power that the solar energy systems produce.
Under the agreement, SunEdison has rights to deploy the solar energy systems at more than 130 Developers Diversified retail centers in the United States.
SunEdison is a subsidiary of solar power device maker MEMC Electronic Materials (NYSE: WFR), which is based in St. Peters, Mo.
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