For Harleysville Insurance, "going green" is paying off--in more ways than one.

The company estimates that its new rooftop solar photovoltaic system will generate about 15 percent of the annual energy needs of its corporate headquarters.

Approximately 47,600 square feet of solar panels now cover nearly half of the total roof surface of the Harleysville complex. Each of the 1,860 ET Solar 275 watt panels weighs 50 pounds and measures 77 by 39 inches. Together, the solar panels are projected to produce approximately 623,000 kilowatt hours of energy each year--enough to power 62 average Pennsylvania homes.

Tecta America was contracted by Harleysville to install the 511.5 kwp system. Based in Skokie, Illinois, Tecta America is the largest national commercial roofing company in the U.S. Its subsidiary, Tecta Solar, was the turnkey installation vendor for the system.

"The benefits to be derived from 'going green' are impressive and serve to underscore Harleysville's commitment to the preservation of our environment and conservation of our natural resources," noted Michael L. Browne, president and chief executive officer.

A significant portion of the project's $2.8 million cost is being offset by financial assistance from both the federal and state governments. "There's a 30 percent federal tax credit--amounting to $840,000--coupled with as much as a $90,000 benefit due to bonus depreciation that will help defray about one-third of our investment," explained Arthur Chandler, senior vice president and chief financial officer. "On top of those federal incentives, the Commonwealth of Pennsylvania Financing Authority provided us with a $355,000 solar energy program grant."

In addition to contributing to a healthier environment, Andrew Shields, assistant secretary and director of facilities services, expects long-term energy cost savings for the company to result from the solar project. "Because the system will generate about 15 percent of our annual energy needs at a fixed cost, we expect both cost savings and protection from rate increases on some of our power costs," he noted. "In fact, we expect to re-coup our overall investment within the first seven years of operation."

Coupled with the installation of the new solar energy generation system, Shields noted that other major environmental projects completed at the Harleysville headquarters have resulted in total energy cost reductions of 25 percent since 2008. Those projects include an ice storage and air conditioning system installed in 2009, as well as various upgrades to lighting, heating, ventilation and air conditioning controls.

"We are especially pleased with the collective results of our efforts to reduce energy consumption during the peak hours of the mid-afternoon," said Shields. "In addition to reducing our annual total building load from 6 million kilowatt hours to 4.5 million kilowatt hours, these initiatives also assist the local and regional power grid meet their growing demands."

Harleysville Insurance is a leading super-regional provider of insurance products and services for small and mid-sized businesses, as well as for individuals, and ranks among the top 70 U.S. property/casualty insurance groups based on net written premiums. As a Trusted Choice® company partner, Harleysville distributes its products exclusively through a network of independent agents primarily across 32 states. Harleysville is ranked #21 in the most recent InformationWeek 500, the publication's annual listing of the most innovative information technology organizations in the U.S., and has been included on the list in each of the last five years. Harleysville Mutual Insurance Company owns approximately 54 percent of Harleysville Group Inc. (NASDAQ: HGIC), a publicly traded holding company for eight regional property/casualty insurance companies collectively rated A (Excellent) by A.M. Best Company. Harleysville Group is listed on the NASDAQ Global Select Market, which is comprised of the top third of all NASDAQ member companies and has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. Further information can be found on the company's website at www.harleysvillegroup.com.

Harleysville Insurance
Randy Buckwalter
215-256-5288 (office)
267-718-3766 (cell)
rbuckwalter@harleysvillegroup.com