Oh, not that Princeton. We were referring to Princeton Properties and our major scoop about their walk on the wild side.  If you missed the tweets when they installed 2000 roof-mounted photovoltaic panels on a 358 unit property in Salem, Massachusetts, rest assured. My editor-in-chief has been following their progress since 2009 and she recognized an uplifting (and very sustainable) story.

Imagining the House of Seven Gables adorned with solar panels was difficult, so I tracked down Princeton’s Vice President of Corporate Sales and Media, Sarah Greenough. A very sharp, engaging and effervescent young woman, she is also on her hometown’s Conservation Commission and has some strong sustainability ‘creds’.  With minimal prodding, she shared a story of intrigue, funding marvels, a corporate commitment to do the right thing [how rare is that?] and its resounding success. Or at least, that’s how it sounded to me. You judge.

GLL: Let’s start with the superficial and get that out of the way. New Englanders have a reputation for militantly preserving historical features and existing architecture. Did you run into any resistance from your renters?

GREENOUGH: To be honest, before the panels were installed on the roof, I, too, was a little nervous. Then I discovered the installed system is pretty attractive as each panel is only about 2 inches thick. So to answer your question, we received absolutely no negative feedback. Perhaps because it was such an obvious step in the right direction, it was very well received by our residents.

GLL: So what was that true nascent moment for the Princeton Crossing property’s solar installation?

GREENOUGH: It was kind of the perfect storm*. Kurt Shillington – our operations manager who also does our bulk energy buying - was investigating new ways we could lower our expenses and not affect the quality of our operations.  He is always concerned with efficiency and the installation became his brainstorm.

GLL: So Kurt started the ball rolling, but I would imagine that it was still pretty much all up hill?

GREENOUGH:  Actually, once we started investigating the costs through groSolar, our designer and installer, it started looking feasible. On the Salem property we had another benefit too. With 25% of the units under affordable housing there were even more incentives.

GLL: People always want to know what these things cost – I know that’s rude - but I would imagine even with rebates this was an expensive system.

GREENOUGH: Again, it was that perfect storm business in a good way. The property had 16 roofs that we could work with and this is about as perfect for solar panels as it gets.  The installation was less than $2 million, but keep in mind that 30 percent of the funds were available through the Feds’ incentives and the stimulus funds. After state, federal and affordable housing incentives and some grants were used, our cost was under 50 percent, which is pretty remarkable.

GLL:  Did that bring the cost factor down to just something competitive or was it more of having a decent breakeven point?

GREENOUGH:   Our CEO, Andrew M. Chaban, met with groSolar and when he realized the payback would occur in less than a year, he immediately approved the project.

GLL: That short a payback for any major building improvement is pretty astonishing.  How was that achieved?

GREENOUGH:  The payback is based on energy generation performance which is mostly in renewable energy credits (RECs) but also through an annual savings of $73,000 on our site’s electric bill. The site also produces surplus power which we can share with our corporate office in Lowell. Many of our new locations will share power too.  We are generating power and the result is a net positive, which is fantastic. [Editor's Note: The new solar array has a 347-kilowatt capacity which is enough to power 80 to 100 small homes on an annual basis.]

GLL:  How will these savings benefit management or residents?

GREENOUGH: The panels power our common areas which include lounges, outside lighting, laundry facilities and that sort of thing.  Our residents are still on the standard grid.  I should point out, though, that when management is able to budget and eliminate energy cost volatility on our end, that helps insulate the renters.

GREENOUGH: In this economy it is more important than ever to keep expenses stable and Kurt [Shillington] has had to be as creative as possible. He has researched and investigated whatever he thought would save money, be cash neutral or make us money.  He really takes a hard look at expenses, as we aren’t increasing rental rates substantially in this economic climate.

GLL: There are a few states that have funded clean energy programs that incorporate credits, incentives and grants, which renewable energy producers claim is critical to their success. Did your project benefit from a particular state agency?

GREENOUGH:  Yes, it did. Commonwealth Solar was created by the state of Massachusetts to accelerate the number of solar electric projects, and it was those additional incentives and credits that shortened our breakeven to under a year.

GLL:  A calendar year? Wow. That must have been quite an exciting time in your office. What was the overall reaction?

GREENOUGH: Well, the experience pretty much wet our palate and the general consensus after that was, “Let’s do it again!”

Princeton Commons

GLL:  So will Princeton do it again?

GREENOUGH:  We already are. In fact, we have three more installations scheduled for 2010. In July we will install photovoltaic cells on a 156 unit property, Princeton at Boston Road in Billerica [MA] and on another 108 units at Princeton Commons in Chelmsford [MA]. And then our final installation this year will be in September on a 204 unit property, Princeton Park, in Lowell.

GLL: Will management be able to take advantage of the same generous incentives?

GREENOUGH:  We still qualify for some Federal grants on these projects, but we are drawing on our own equity mainly because we think it’s a good investment. However, we are not going to go cash negative.  The reason we did the first installation was two-fold.  The money was available, there was the sustainability factor and it was a fast payback. We are projecting a payback of under three years on our newest projects, but they still make good economic sense.

GLL: Was there a learning curve with the technology or the first installation?

GREENOUGH: There was for me. New England doesn’t have the kind of sun that you get in Texas or Arizona, and I thought this would be an issue. I learned that the panels work very productively with our climate. When there is a significant difference between the cold air and the warm sun hitting the panels, they are actually more efficient.

GLL:  How has the solar installation affected your marketing?

GREENOUGH: The press and exposure have been wonderful! After all, when you have a choice, why wouldn’t you rent an apartment that is good for the environment?

GLL: I interview many people who tell me up the front cost or payback period makes renewable energy impractical. How would you respond to that?

GREENOUGH: That is a frustrating and antiquated way of thinking.  I strongly believe that if organizations do their homework, they will find grant money available.  Plus, not every decision can be a quick payback decision.  We own and manage our assets for the long run, so we must have a diversified strategy that includes some “quick projects” and some projects that need to simmer for a few years.  It is very short-sighted to just assume the up-front costs are halting.

GLL: One final question. What advice would you give other multifamily property managers who are contemplating walking on the wild side with Princeton?

GREENOUGH: Do your research!  There are lots of state and non-profit grants and right now Federal grants alone will reimburse 30 percent of upfront costs. Work out the breakeven point and see if you can recoup your costs. We felt it was important to get very aggressive, because who knows what will happen in years to come.

GLL:  Thank you so much for your time, Sarah, and good luck with your new projects.

GREENOUGH:  Thanks, it was great talking with you.

Sarah Greenough, Vice President, Corporate Sales and Media, can be reached at Princeton Properties Management, Inc. PH: 978-458-8700   FAX: 978-458-8701 www.princetonproperties.com.  Founded in 1973, Princeton Properties owns, manages and leases 5500 apartments and furnished suites in 38 communities in Massachusetts, New Hampshire, Maine and Georgia.

To contact groSolar, contact Gaelan Brown, VP of Marketing, at 800-374-4494 x 6528 or via email at gaelan.brown@grosolar.com. GroSolar is a national company headquartered in Vermont with offices at 601 Old River Road, Suite 3, White River Junction, VT 05001.

*The perfect storm is a reference to the book by Sebastian Junger and the 2000-vintage movie with George Clooney/Mark Wahlberg/Diane Lane both based on the true story of the Gloucester fishermen and the monster storm that … you know what? Rent the movie.

Other articles of interest:

• Net Zero Begins With You
• EcoFLATS: Net Zero Apartment Living for Everyman
• A Wake for Pace? Not So Fast…