At Long’s Pic Pac in Pineville, Kentucky, solar panels cover the roof of the small-town grocery store. The store has been a community staple since 1964, but a lot has changed in energy options and costs since then. Now, a 60KWh battery allows Long’s Pic Pac to store solar energy, vastly reducing the peak demand charges that make up more than half the store’s monthly power bill. The project was supported by a combination of federal tax credits, a Rural Energy for America Program (REAP) grant from the USDA, and support from the Mountain Association, an Appalachian Community Capital member.
Grocery stores run on a razor-thin 2.2% profit margin, and high demand charges like refrigeration, deli ovens, and fryers can eat into that margin even more. At the grocery store, power can cost as much as $78,000 annually. On a monthly bill, the power charges might be $2,600, while the store might pay $3,900 for the “demand charge,” based on the highest amount of power (peak power) used.
“Tight margins are one of the reasons why many rural places have seen full-service stores struggle to keep their doors open,” said Mike Long, the business owner.
The new energy installation is estimated to save the grocer at least $15,000 per year. That savings can be used for staffing in the perishable departments and offset added field costs in delivery, keeping good jobs and groceries accessible for the community.
