News & Press

Upper Southampton manufacturer unveils solar array

Courier Times-The Intelligencer

June 8, 2011

NewAge Industries, a rubber and plastic tubing manufacturer in Upper Southampton, Wednesday formally dedicated a new solar array, one of the largest such systems in the state.

The 1 megawatt system, which consists of 4,082 solar panels, is the largest roof-mounted solar array in Bucks County and the sixth largest in the state, officials said. It's eclipsed in Bucks by Exelon Generation Co.'s solar field in Falls, which consists of 17,000 solar panels and generates enough electricity to power about 400 homes per year.

NewAge's system went online last month. It's expected to generate half of the facility's yearly electricity needs.

On Wednesday, CEO Ken Baker and other executives led visitors on a tour of the plant, then up to the roof, where the panels had been installed atop a white, insulated roof — another part of the company's overall quest for energy efficiency

"To see what you've done here is quite phenomenal," said U.S. Rep. Mike Fitzpatrick, R-8. "You're demonstrating an example a lot of other manufacturing companies should follow."

The $4.2 million project was offset by a $1 million state grant and $1.2 million from the federal government, Baker said. The company will recoup the remaining $2 million cost in about six years because of the energy savings, officials said.

This is the largest project the 55-year-old company has undertaken. But it's only part of NewAge's energy overhaul. Over the past several years, the company has installed more efficient lighting that has reduced electricity consumption by one-third, Baker said. It's also using high-efficiency motors and air-conditioning units.

"We think it's just the right thing to do," Baker said. "We're making a major stand."

The system was designed by Borrego Solar, a California company that specializes in commercial systems, and installed by Reading Electric. All the main components of the solar array were made in the U.S., which added about $150,000 to the cost, Baker said.

"We thought it was necessary to buy American made," he said. "We're getting money from the state of Pennsylvania and the federal government. We felt, as a consumer, we make the choice."

Baker is the second generation to run NewAge Industries, which was founded by his parents in Bala Cynwyd. New Age moved to James Way in Upper Southampton in 2000.

The company has remained successful through the country's economic recession, Baker said. While many companies sold off inventories to pay down debt during the recession, New Age didn't, he said. In fact it ramped up production, positioning itself to fill holes in the supply chain once the economy began to improve.

The gamble paid off, Baker said. Sales, which have seen record growth in each of the last six years, were up 30 percent last year, to $29 million. The company also increased its workforce by 20 percent; it now has 100 employees. Workers own 30 percent of New Age through an employee stock ownership plan.

Harry Landsburg said NewAge's investment in solar makes sense. Landsburg is director of business process technology consulting with the Delaware Valley Industrial Resource Center, an organization that helps regional manufacturers grow their business. The center has been working with companies like NewAge that want to improve their energy efficiency.

"There are unknowns in the future price of energy," he said. "There's good return on investment. There's the certainty of knowing what one component of your cost structure will be."

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