City Council approves microgrid plan focusing on 24-hour solar battery systems

The City Council of Laguna Beach convened on April 8, 2025, to discuss the implementation of a microgrid system aimed at enhancing energy resiliency across city facilities. The meeting focused on evaluating various options for solar and battery systems, with a particular emphasis on financial implications and operational efficiency.

The council reviewed a comprehensive analysis of 11 potential locations for the microgrid installations. Three different resiliency levels were considered for each site, with the primary recommendation being the purchase of solar panels combined with a leasing option for battery systems. This approach, referred to as Option 3, was favored due to its lower initial costs and the flexibility it offers for future upgrades in battery technology.

During the discussions, it was noted that while the proposed projects would not achieve cost recovery within a 25-year lifespan—except in one out of a hundred scenarios—the systems would significantly enhance operational resiliency. The recommended 24-hour battery capacity was highlighted as a practical choice, allowing the city to maintain essential services during power outages. The council also discussed the potential for load shedding, which would enable the city to prioritize critical operations during emergencies.

The financial analysis revealed that the costs associated with battery systems and their maintenance could offset potential savings from solar energy. As a result, the council considered alternative strategies, including the possibility of smaller battery systems for less critical facilities, which could yield cost savings while still providing a degree of resiliency.

The council allocated $500,000 in the current fiscal year budget for the microgrid project, with plans to initiate work on Fire Stations 2 and 3, where outdated generators are currently in use. The council aims to finalize the contract and move forward with the project, targeting a completion date of 2033 to maximize available federal tax credits for solar installations.

In conclusion, the meeting underscored the city's commitment to enhancing energy resiliency through strategic investments in solar and battery technologies, despite the financial challenges identified. The council's next steps will involve further modeling of battery options and refining the project scope to ensure effective implementation.