WASHINGTON – An organization is providing Washington a plan to put in photo voltaic panels on metropolis buildings, saying it can reduce town’s vitality payments with “little or no funding.”
Kent Kraus, a consultant from Eagle Point Solar, introduced the plan to metropolis council members at a gathering on June 4. He stated the constructions above the library, metropolis corridor and upkeep constructing may save town greater than $1 million after 25 years, relying on how the set up is financed.
The firm supplied town a “Power Purchase Agreement,” or PPA: an association the place town agreed to purchase the vitality produced by the panels, that are owned by personal buyers, not less than initially. Officials may even buy the tools for town later, at a reduction based mostly on its age, to additional scale back vitality prices.
The settlement will all the time present vitality cheaper than what Alliant provides, in response to Kraus, however the buildings can nonetheless use electrical energy from the native grid if the climate prevents the photo voltaic panels alone. He stated town would save greater than $573,000 over 25 years, even when it did not purchase the photo voltaic panels for itself.
“The charge for the PPA is an agreed charge between town and the investor,” he stated. “There has been a rise in that charge, over time, as there was a rise in utility charges. We are a utility charge enhance of three.8%, sometimes the PPA enhance is 3%.
City budgets and personal buyers alike will profit from the association, in response to Kraus, who stated PPAs supply house owners passive revenue with much less upkeep and supply town a cheaper price than it could count on from common vitality payments.
Last yr, town spent $698,107 on vitality payments, in response to City Finance Director Kelsey Brown. In Kraus’ estimation, an influence buy settlement would put about $9,900 price of that quantity, within the first yr alone.
“The motive buyers like these investments is, they’re investing in one thing they do not have to observe, they do not have tenants, they do not should chase folks,” he stated. “And once more, there isn’t any value for town to go together with it … it permits town to get photo voltaic with out spending any of their very own {dollars}.”
Kraus stated town can nonetheless recoup its prices by incomes credit from Alliant when municipal buildings overproduce energy, sending vitality again to the grid for different customers.
An Alliant Energy spokeswoman wouldn’t touch upon Power Purchase Agreements particularly when requested, however stated in an e mail that the corporate is “extremely supportive” of renewable vitality tasks usually.
“We are proud to be working in direction of a clear vitality future, in partnership with native companies, prospects and communities,” the e-mail stated.
City Clerk Amanda Waugh stated the presentation from Kraus was “informational,” and that council members didn’t have the merchandise on their agenda for a daily June 18 assembly.
Comments: Kalen.McCain@southeastiowaunion.com