MGM Resorts International installed a 100 MW solar park across 640 acres in the desert that will provide power to its Las Vegas casino empire and 36,000 hotel rooms.
The 323,000 solar panels will be enough to supply 90% of the daytime energy needs of MGM’s 13 strip casinos.
Within 3 years, the solar system contributed to a significant 41% emission reduction for the 13 Las Vegas properties and its services.
Solar will help the company achieve its goal of reducing carbon emissions by 45% per square foot across their 65M sq. ft. of property by 2025.
“With MGM Resorts’ significant scale and resources, we’re positioned to make a meaningful difference in the fight against climate change, and we recognize our responsibility to build a more environmentally sustainable future.”
Bill Hornbuckle, CEO and president of MGM Resorts
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.
“Our imperative is heightened by increasing demand for environmentally sustainable destinations.”
John McManus, MGM’s Executive Vice President and General Counsel
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.
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.
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.
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.
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.
“We’re making a significant step forward in our environmental sustainability initiatives in Las Vegas and our long-term vision to protect the planet and achieve an enduring, positive impact in our communities worldwide.”
Bill Hornbuckle, CEO and president of MGM Resorts
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