Exelon Corporation’s (EXC - Free Report) business wing – Constellation Energy Resources, LLC – has constructed a 1.6-megawatt solar generation project in the Somerton School District, Yuma County, Ariz. The company owns and preserves the solar power systems of the project.
The plant is situated in five locations – Desert Sonora Elementary School, Orange Grove Elementary School, Somerton Middle School, Tierra del Sol Elementary School and Valle del Encanto Learning Center. The solar system consists of roughly 6,600 photovoltaic panels on 10 carports and 8 shade structures. It will generate nearly 2.3 million kilowatt-hours of power annually. At the same time, it will reduce carbon dioxide emission by 1,300 tons per year.
Constellation Energy will sell the output to the Somerton School District over the next 20 years. The long-term power purchase agreement will help the Somerton School District to get approximately 60% of its electricity requirements.
We believe Exelon Corporation’s efforts toward expansion of its solar portfolio will create a win-win situation for both the parties. Per the solar service agreements, the company offers solar installations without upfront capital investments from customers and tries to offer electricity at fixed prices lower than the prices offered by other utilities in the region.
Globally, utilization of renewable energy is rising primarily due to its clean nature and a growing awareness among the masses regarding its benefits. These influence utility providers to shift their mode of power generation to solar, wind and water.
Exelon Corporation generates 55% of its electricity from the nuclear power plants. The company is currently venturing into environment-friendly power projects, which will subsequently enable it to avoid incidents like Japanese nuclear plant massacres. At present, nearly 10% of Exelon Corporation’s total production comes from renewable sources, with the ratio rising gradually.
Constellation Energy itself has installed approximately 28-megawatts of solar projects at the Arizona school districts. Exelon Corporation intends to invest $800 million between 2013 and 2014 in order to expand its renewable assets.
Apart from Exelon Corporation, other utility providers including Wisconsin Energy Corporation (WEC - Free Report) , Sempra Energy (SRE - Free Report) and Northeast Utilities also invest substantial amounts to expand and upgrade their renewable portfolio.
Chicago, Ill.-based Exelon Corporation, a utility services holding company, engages in the generation, transmission, distribution and sale of electricity to residential, commercial, industrial and wholesale customers. The company currently has a Zacks Rank #3 (Hold).