Apple's US$848 million 1,300-acre Solar Farm - How First Solar is decoupling Green Apple from the Grid using Renewable Energy

“Apple is leading the way in addressing climate change by showing how large companies can serve their operations with 100 percent clean, renewable energy. Apple's commitment was instrumental in making this project possible and will significantly increase the supply of Solar Power in California”

 CCO (Chief Commercial Officer) for First Solar, Joe Kishkill in a Press Release explaining the deal with Apple to build a US$848 million 1,300-acre Solar Farm

Apples are normally red or Green, but the Apple located at 1 Infinite Loop Drive is decidedly a Green colour.

This as they'd decided to partner with a Solar Utility company, First Solar, and build a US$848 million 1,300-acre Solar Farm in Monterey County in California as reported in the article “Apple will invest $850M in California Solar Farm”, published February 10, 2015 1:07 PM PST by Shara Tibken, CNET News. 

The News was announced by Apple CEO Tim Cook on Tuesday February 10^th 2015 at the Goldman Sachs technology conference in San Francisco as reported in the article “Apple in big solar power deal, market cap closes over $700 billion”, published Tue Feb 10, 2015 7:28pm EST BY CHRISTINA FARR AND NICHOLA GROOM, Reuters, pushing their market capitalization to some US$700 million.

Aside from this, he also made public some other details about the project which has the potential to Power their entire company via a Net Billing arrangements with California Utilities.

This is somewhat similar to Digicel Jamaica and their fully Solar Powered Headquarters off Ocean Boulevard in the heart of Downtown, Kingston as stated in my blog article entitled “Digicel adds on Green Power to future Corporate Building - Petula Clarke's Downtown Global Warming Crisis” and my Geezam blog article entitled “Digicel Jamaica’s Alternative Energy Future – Increased Electricity Bills and Energy Sector Opportunities collide”.

According to the article “Apple Inks 130MW Solar Power Contract With First Solar”, published 2/10/2015 by Ucilia Wang, Forbes, the deal with First Solar is really for their California Flats Solar Project. Apple's investment is spread over a twenty five (25) year period up until the year 2040 and works out to be about US$34 million dollars per year.

Apple's US$848 million 1,300-acre Solar Farm - How First Solar is decoupling Green Apple from the Grid using Renewable Energy

Located 150 miles south of Apple’s headquarters, the 1,300-acre Solar Farm will generate some 130MW of Power, which is enough Power to Power some 60,000 homes in California and more than adequate to Power all of Apple's offices, retail stores and Data center in California.

At US$848 million, Apple's 1,300-acre slice of the Solar Farm is just 44.8% of the total 2900 Acres that generates a total of 280 MW. As it stands, that makes Apple, First Solar's largest customer, with the remaining 150 MW going to PG&E (Pacific Gas and Electric Co).

The electricity generates goes directly inth the California Power grid and is taken back via as Net Billing arrangements similar to what we have here in Jamaica as noted in my blog article entitled “Phillip Paulwell makes Net Billing official with 11 licenses issued - JPS Co invited via Mavado's Come Round a Mi Yard”.

So will decoupling from the California Power Utility Grid work in Apple's favour?

It'll take awhile to recoup the investment, roughly another fifteen (15) years into the twenty five (25) years. But given the size of Apple and the fact that they're licensing Solar Power from First Solar rather than building their own Solar Power Plant, they've reduced their costs to just single annual payments of US$34 million dollars per year for the next twenty five (25) years to cover construct costs.

A fairly balanced Deal that makes them the Green Apple of Renewable Energy.