Neutrogena to Install $1.4 million, 200 kW Solar System

The solar system -- taking up 24,000 sq feet of roof area -- will help reduce energy consumption by 20 percent monthly.

Published: 07-Mar-2001

LOS ANGELES--(BUSINESS WIRE)--March 6, 2001--A major development in the reduction of electricity costs and production of energy occurred today (March 6) with the joint announcement from the Los Angeles Department of Water and Power (LADWP) and the Neutrogena Corporation that the health and beauty products firm will be the first major company to install a solar system in Los Angeles.

The installation will also be the largest in the city.

Neutrogena, a Johnson & Johnson company, will install a 200 kW system, 100 kW installations in two buildings, at its corporate headquarters facility located near the Los Angeles International Airport. Project cost is $1.4 million. The solar system will help reduce energy consumption by 20 percent monthly. The project, which will cover 24,000 square feet of roof area, is scheduled to begin in May and to be completed in July.

"This is precisely the type of innovation and leadership we need from California-based businesses and municipal utilities to help solve the energy crisis on a long term basis," said California Assembly Speaker Pro Tempore Fred Keeley (D-Santa Cruz), who has taken a lead role in finding solutions to the state's energy crisis.

"Solar power system contributions to our energy needs are immediate, and the environmental benefits enduring," said Keeley.

"Neutrogena is a wonderful example of a local company that wants to be a good neighbor in the community as well as provide a model to other businesses. Neutrogena needs to be commended for their leadership," said Councilmember Ruth Galanter, president pro tem of the Los Angeles City Council.

"Neutrogena takes great pride in its commitment to new ideas and innovation with our products in the marketplace," said Michael McNamara, president of Neutrogena Corporation, "and with equal pride we are pleased to partner with LADWP in this leadership role in our community, to help resolve the energy crisis plaguing California."

"We are excited that Neutrogena Corporation is stepping up and assuming the role of the first major LA-based company to sign up for solar. The installation is also the largest in the city and the commitment will help to greatly enhance the environment," said Angelina Galiteva, LADWP director of strategic planning.

She said that Neutrogena's solar program will eliminate more than 513,000 pounds of CO2 emitted to the environment annually, the equivalent of removing 53 automobiles from Los Angeles streets. Also, the annual cost savings to Neutrogena is equivalent to the cost of powering 100 average size homes in the city of Los Angeles.

Neutrogena will be participating in the Department of Water and Power Solar Buy Down Program and will benefit from the higher incentive of $5 per watt since the modules in their system will be provided by Siemens Solar. PowerLight Corporation is designing and installing the system.

Because Siemens has sited a facility in the city of Los Angeles, Neutrogena and other LADWP customers will benefit from the higher incentive. Solar systems manufactured outside the city qualify for an incentive of $3 per watt installed. Solar systems maximum incentive payment for a residential site is $50,000; for a commercial site, $1 million. The Neutrogena project will use the maximum incentive payment.

Clean Technology Will Supplement Power Delivery, Ease Demand

In its landmark 2000 Integrated Resources Plan, the LADWP cites the increased use of photovoltaics in reducing emissions and electricity demand. In fact, industry experts predict the $1.5 billion solar electric market will double by 2005 and again in 2010.

A 2,000-watt system (2kW) can supply the average home (1,500-2,000 sq. ft) with 20 to 60 percent of its power. With the incentive, a 2kW system costs approximately $8,000. A typical 2kW residential rooftop solar system produces 3,600 kW hours per year. This solar system therefore avoids the need to burn 3.7 tons of coal to produce the same amount of electricity, and thus prevents 10,000 lbs. of green house gases from entering the atmosphere.

If the household uses more electricity than the PV panels are producing, the balance of the electricity will come from the power lines. If the household uses less, then the power goes back into the power lines to service other customers.

"Visibility and volume are key to actually demonstrating the viability of PV technology," said Galiteva. "By driving the costs down and recognizing the benefit of the investment in monthly energy savings for the long term, solar should be an attractive option for all LADWP customers."

LADWP has goal of 100,000 solar rooftops by 2010

With year-round sunshine, air quality issues and growing demand for electricity, Los Angeles is seen as a solid proving ground for photovoltaic technology that can be tied in to the Department's transmission grid at customer locations without taxing the existing infrastructure. The Department goal is to encourage the installation of 100,000 solar systems in L.A. by 2010.

About Neutrogena Corporation

Neutrogena, a worldwide leader in premium, dermatologist recommended skin, hair and cosmetic products, has been providing consumers with health and beauty improvements for more than 40 years. With headquarters in Los Angeles, the company is a subsidiary of Johnson & Johnson, the world's most comprehensive and broadly based health care products company.

About LADWP

The Los Angeles Department of Water and Power serves more than 3.8 million people in Los Angeles and was established almost 100 years ago to provide water and electric needs to the city's businesses and residents. The Solar program is part of LADWP's Green LA initiatives that include Green Power, Energy Efficiency, Electric Transportation, Cool Schools, New Technologies and Recycling efforts. Further information about the Solar and other Green LA programs can be obtained by calling 1-800 GreenLA or clicking onto www.GreenLA.com.

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