Run by the Sun

At Kohl’s department stores, it’s not just what’s on the racks that matters: It’s also about what’s on the roof.

The company, recipient of the EPA’s Green Power Leadership Award and ranked No. 2 on the agency’s list of top retail purchasers of renewable energy, is the world’s largest retail host of solar power. As of this fall, the Kohl’s solar program included panel systems in place on 60 store rooftops, with 20 more in various stages of construction. And that’s only the beginning of what Kohl’s hopes to accomplish.

“We have a focused green mission to be a leading environmentally responsible retailer by maximizing energy efficiency, minimizing waste, improving new building design, reducing climate-damaging emissions and encouraging environmental values,” says John Fojut, vice president of facilities for Kohl’s. The company incorporates environmentally friendly practices that are also fiscally responsible. “We are able to reduce our carbon footprint and reduce energy costs while maintaining a comfortable shopping environment for our customers,” he says.

Kohl’s entered a 20-year power purchase agreement with SunEdison, a leading solar energy service provider, in 2007. The agreement means the solar panels can be installed on Kohl’s rooftops without any capital outlay. Stores also remain open during the conversion process, at no inconvenience to customers. The first stores to receive the panels were in California, Wisconsin, Connecticut, New Jersey, Maryland and Oregon.

SunEdison “manages and funds implementation,” Fojut says. Kohl’s pays a fixed, predictable rate for its solar electricity at an immediate savings to the local utility rates. “As energy costs have been volatile, this provides an important hedge against escalating energy costs,” he says.

Once the company’s solar efforts are complete (the goal is to activate 130 locations) more than 24 million pounds of carbon dioxide will be offset over the first year in California alone — the equivalent of removing about 2,300 cars from the nation’s roads.

Regardless of the state, however, the solar panels will provide up to 40 percent of the power needed for each individual location. The largest system is on the roof of the distribution center in San Bernardino, Calif., where 6,208 panels will have the capability to generate 1 megawatt of power under peak conditions.

Environmental stewardship
When the initiatives were announced, SunEdison CEO Tom Rainwater applauded Kohl’s leadership in “finding a financially viable solution to deploying clean solar energy in a meaningful way. Kohl’s has chosen to use renewable energy to demonstrate environmental stewardship and contribute to a healthier environment in the communities in which they operate.”

Though the solar initiatives may seem grand, they’re just a portion of the company’s overall energy management programs. It also has installed automated demand controls in more than 30 California stores, reducing power use during peak times, Monday through Friday, May to October.

In addition, all of the company’s locations are operated by a central energy management system, which Kohl’s says has led to “one of the lowest energy usages per square foot in the retail industry.” More than 100 Kohl’s stores have received the ENERGY STAR label for superior energy efficiency, and this year, the company was scheduled to open 47 environmentally friendly new stores — 45 built according to a pre-certified LEED (Leadership in Energy and Environmental Design) prototype.

Almost a third of the company’s in-bound transportation moves by rail, which is significantly cleaner than over-the-road trucks. Kohl’s is also committed to recycling, reducing waste, investing in high-efficiency lighting, reducing emissions and increasing backhaul trips to eliminate millions of road miles for empty trucks. These efforts fall under the umbrella of the Kohl’s “Green Scene” initiative.