Submitted by Sharon Driscoll, recycling coordinator
(Madison County, NY – Aug. 2013) The PPA (Power Purchase Agreeme
nt), which passed Tuesday Aug. 13 by the Madison County Board of Supervisors, will allow Solar Liberty Electric Company to build, finance, own and operate a solar powered photovoltaic array at the Madison County Landfill site on Buyea Road in the Town of Lincoln.
“We’re thrilled to see that Madison County has decided to ‘go solar’ with Solar Liberty’s Power Purchase Agreement, which allows for no upfront costs or out of pocket expenses to the County. The Department of Solid Waste’s solar installation proves the County’s commitment to being a leader in renewable energy and their desire to save money for their citizens. We’re optimistic that more municipalities will follow their lead,” said Marking Manager Maureen Hanagan.
Solar Liberty provided the best of three proposals with a fixed price of five cents per kilowatt hour ($0.05/kWh) for a period of 15 years with a capital investment of zero dollars by the County.
Director James A. Zecca said, “The departments’ projections indicate that the power purchase agreement (PPA) will generate an approximate savings of 50 percent compared to our current arrangement with National Grid.”
The agreement was contingent upon the project qualifying for a grant by the New Work State Energy Research and Development Authority (NYSERDA) under its Program Opportunity Notice 2112, which the Board executed on August 13.
For municipal projects, PPA financing offers a way for government agencies to monetize tax rebates that they otherwise would not be able to use. Another attraction for PPA customers, whether municipalities or businesses, is that much of the hassle involved with installing a solar project – from how to connect to the grid to working with the range of incentives—is the developer’s burden to bear. California and New York are just two of many states where incentives are fueling PPAs.
The County is engaged in discussions with the New York State Department of Labor (DOL) with respect to the application of the prevailing wage statute to the proposed PPA and although the matter is unresolved, todays resolution is based upon the understanding that costs set forth in the Solar Liberty proposal will not be affected by the determination regardless of the outcome.
“We have seen the number of power purchase agreements for PV systems soar in New York State over the past few years, and as Governor Cuomo’s NY-Sun Initiative continues to stimulate the PV market, we expect this trend to continue,” said Francis J, Murray Jr., NYSERDA president and CEO. “Solar energy is an important part of New York’s diverse renewable energy portfolio. The State’s renewable energy capacity is comparable to the entire renewable energy capacity of the eight states in the Northeast.”