REI’s Solar Energy Program

REI’s Solar Energy Program

By
David Hoyt, Stefan Reichelstein
2011|Case No.BE17

In 2010, Recreational Equipment, Inc. (REI) considered adding photovoltaic solar panels to the roofs of some of its facilities. This was driven by both financial and environmental considerations. In 2008, the company had added solar panels to 11 buildings in a project (“Phase 1”) that was justified largely as a learning exercise. The new project (“Phase 2”) would have to meet both financial and environmental objectives. The case describes the company’s experience with solar power generation as well as providing representative assumptions for parameters in the financial analysis.

An Excel spreadsheet is available for students, incorporating the basic analytical methodology used by REI.

This material is available for download by current Stanford GSB students, faculty, and staff only. For inquiries, contact the Case Writing Office.