UPPER FREEHOLD— The municipal buildings may go solar.
At the April 14 Township Committee meeting, the governing body heard that solar power could save half of the $30,000 annual electric bill for the municipal complex, including the two main buildings and the two buildings occupied by the Department of Public Works. Township Administrator Dianne Kelly said the proposal does not include the $10,000 the township spends annually for electricity at Byron Johnson Park.
Kim Curtin, of Solis Partners in Manasquan, stated that his company would obtain all the necessary approvals and design and construct a ground-mounted solar system, which he said would generate about 99 percent of the electrical power used at the municipal complex. He said the project would not require capital funds from the township.
Under the proposal, the township would pay .065 cents per kilowatt hour (KWH) for the first year, and then 3 percent more per year during the 15-year power purchase agreement (PPA). At the end of the agreement, the amount would not exceed .075 cents, he said. After the 15-year period ends, the township may negotiate an extension of the contract with the company, have the company remove the solar panels at no cost to the township, or purchase the system at fair market value, he said.
According to Curtin, the township municipal complex currently uses approximately 150,000 KWH annually. The ground-mount system will produce an estimated 152,000 KWH per year, he said. Curtin added that his company would fully insure and maintain the system for 15 years, with the solar panels having a 25- year warranty and the inverters a 20-year warranty.
According to the Solis Partners website, “Under a PPA, the solar property is owned by a third party investor who sells the energy produced to the host at a discount to utility rate under a long-term agreement. This provides the host with predictable fixed electricity rates and the owner/investor with all the associated federal and state benefits that come with ownership.”
Curtin said converting to solar power should reduce the township’s annual electric bill between 50 and 60 percent.
Committeeman Stan Moslowski Jr. asked how much it would cost the township to build a solar energy system on its own, and Curtin said it would cost $500,000.
Committeeman Steve Alexander asked why the PPA is for 15 years and not 25 years, and Curtin replied that the state subsidy is paid out for that amount of time, so most agreements are written with a 15-year PPA. To take advantage of a 30 percent federal grant, the township must begin installation by the end of the year, he said.
The governing body said it would discuss and consider the proposal.