MGM Resorts Mega Solar Array
- EMISSION REDUCTION 41%
- DAYTIME ENERGY SUPPLIED BY SOLAR 90%
PROJECT
OVERVIEW
The 100-megawatt (MW) solar array, referred to as the “MGM Resorts Mega Solar Array” is located within the Dry Lake Solar Energy Zone, about 30 miles north of Las Vegas, Nevada. A solar array is essentially a collection of solar panels connected together to convert sunlight into electricity. The MGM Resorts Mega Solar Array generates up to 300,000 megawatt hours (MWh) of electricity annually, which is enough to power more than 25,000 homes’ electricity annually.
A Solar Energy Zone (SEZ) is a designated area specifically set aside to encourage the development of utility-scale solar energy projects. These zones are identified and established by government initiatives to streamline the permitting process, reduce regulatory hurdles, and promote large-scale solar energy production.
MGM was so committed to implementing this renewable energy project that they chose to pay the expensive $86.9 million dollar exit fee to no longer continue to do business with Nevada Energy.
IMPACT
OF Project
After comparing the data from 2019, their baseline year to 2022, the MGM Resorts Mega Solar array contributed to a 41% emission reduction for the 13 Las Vegas properties and its services. This reduction is the equivalent of 250 million pounds of coal burned. In total, the solar energy produced from the MGM Resorts Mega Solar Array provides about 40% of total energy use in the day and night. The solar system has further potential to produce up to 100% of the daytime energy needs for its Las Vegas properties.
FINANCING
THE PROJECT
MGM Resorts entered into a utility-scale solar Power Purchase Agreement (PPA). A Utility Solar Power Purchase Agreement (PPA) is a financial arrangement that allows a casino to harness solar energy without bearing the upfront costs of installing and maintaining a solar power system.
Partnership with a Solar Developer
The casino partners with a solar energy developer who installs and maintains the solar power system. This system is typically large-scale and may be located either on-site (e.g., rooftop or ground-mounted on the casino property) or off-site in a solar farm.
No Upfront Costs
The developer covers the initial costs of the solar power system, including installation and maintenance. This removes the financial burden from the casino, allowing it to benefit from solar energy without significant capital expenditure.
Purchase of Solar Power
Under the PPA, the casino agrees to purchase the electricity generated by the solar power system at a predetermined rate, which is usually lower than the current utility rates. This agreement typically spans 10 to 25 years.
Fixed Rate
The price for the electricity is fixed for the duration of the agreement, providing the casino with predictable energy costs and protection against future utility rate increases.
