Project requires zero capital investment, will attract tenants, and benefit shareholders and the environment
New York (April 7, 2022) – Empire State Realty Trust (NYSE: ESRT) shared plans today for a community solar project at their 287,351-square-foot office property at 500 Mamaroneck Avenue in Harrison, N.Y. The innovative property improvement will serve as a new revenue source, contracted for the next 25 years, with approximately forty percent of the monetary credits generated by the project allocated towards the ongoing cost to power the Westchester office building. The rest of the credits will be available to local residents to share in the solar project’s benefits, which include electricity cost savings. To be completed at no cost to ESRT, the project will feature a new parking canopy solar array that will provide year-round elemental shelter for roughly 500 vehicles, an 8.2-MWh battery storage system, and approximately 80 electrical vehicle (EV) charging stations for tenant convenience.
“Companies look to ESRT to help them achieve critical sustainability goals which attract and retain employees who value environmental leadership and action,” said Anthony E. Malkin, ESRT chairman, president, and CEO. “This project helps ESRT meet our sustainability objectives, contributes renewable power to our community, will help to attract tenants, and benefit our shareholders.”
“Tenants of 500 Mamaroneck have a leg up to achieve their goals simply through their tenancy in the building. The property is now uniquely positioned to reach some of real estate’s most aggressive ESG targets, to improve the tenant experience, and to generate an innovative new source of cash flow,” said Dana Robbins Schneider, ESRT senior vice president of sustainability, energy, and ESG. “This community solar and storage project at 500 Mamaroneck will cost ESRT zero capital investment, generate stable, positive free cash flow over a 25-year period, and improve 500’s competitive position.”
ESRT’s diverse portfolio benefits from both its Manhattan properties like the Empire State Building and suburban buildings like 500 Mamaroneck Avenue where this project is set to produce more than double the building’s annual energy usage. The project is just another way that ESRT innovates to achieve its sustainability goals, which include a target of net-zero carbon emissions for its entire portfolio by 2035.
“For many of our team members, sustainability and healthy buildings are important,” said Edward G. O’Connor, partner at PKF O’Connor Davies, LLP, a tenant at 500 Mamaroneck. “We are proud to lease from a landlord who prioritizes energy efficiency and appreciate the fact that local renewable solar power is generated on site at 500 Mamaroneck.”
The inclusion of battery storage and electrical vehicle (EV) charging stations ensures reliable power for resilient service and the ability to support the increased demand of EV transportation at no additional cost to tenants. The project is among the first installations in the state to incorporate the innovative mix of community solar, storage, and EV charging.
ESRT will partner with PowerFlex, a provider of onsite renewable energy solutions, to complete this project. PowerFlex is a subsidiary of EDF Renewables North America, a market-leading independent power producer and service provider with 35 years of experience.
NYSERDA provided over $2 million in combined support for this project through its Retail Energy Storage Incentive Program and NY-Sun Program. Once completed, this project will contribute to New York’s goal for 70 percent of its electricity to come from renewable sources like solar by 2030 as outlined in the Climate Leadership and Community Protection Act.
“We are excited to work with ESRT to provide a comprehensive energy solution that incorporates multiple low-carbon energy technologies. By combining solar, storage, and EV charging solutions, ESRT demonstrates its strong commitment to sustainability with a holistic and forward-looking view. Additionally, ESRT not only increases its own resiliency, but also shares the financial and environmental benefits of renewable energy with its surrounding area through community solar,” said Raphael Declercq, executive VP of onsite solutions & strategy, EDF Renewables North America.
More information about 500 Mamaroneck Avenue and ESRT’s leadership in ESG can be found online.
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