Select Energy updates solar agreements for Procter and Lincoln Elementary Schools

The Select Board of Northborough convened on August 5, 2025, to discuss several key agenda items, primarily focusing on solar energy agreements for Proctor and Lincoln Street Elementary Schools. The meeting featured Brian Hupp from Select Energy, who provided updates on the solar arrays installed at the schools.

Hupp began by confirming that the solar arrays are operational and that the financing for these projects is being finalized. He noted a significant change in tax incentives, which increased from a 30% to a 40% tax credit. This adjustment has led to a reduction in the Power Purchase Agreement (PPA) rate, meaning the town will pay less for the electricity generated by the solar arrays.

The board reviewed several documents related to the solar agreements, including an amendment to the original contract and estoppel documents, which confirm that previous agreements remain valid. Hupp explained that these changes were administrative and aimed at ensuring compliance with the banks involved in financing.

During the discussion, board members sought clarification on the financial implications of the agreements. Hupp indicated that the new PPA rate would be approximately 11 cents per kilowatt-hour, a reduction from the previous rate of around 16 to 20 cents. This change is expected to yield significant savings for the town over the duration of the agreement, which is fixed for 20 years.

Concerns were raised regarding the early termination clause of the agreement, which would require the town to cover unrecovered project costs if the agreement were to be terminated prematurely. However, Hupp reassured the board that no municipality has ever exercised this clause in similar projects.

The board also discussed the decision-making process that led to the adoption of the PPA model instead of purchasing or leasing the solar arrays. Hupp explained that municipalities often find it challenging to take full advantage of tax incentives, making power purchase agreements a more viable option.

In conclusion, the meeting highlighted the progress made in the solar energy initiatives for the elementary schools, emphasizing the financial benefits and administrative updates necessary to finalize the agreements. The Select Board expressed satisfaction with the information provided and acknowledged the importance of these renewable energy projects for the community. Further discussions and follow-up actions are anticipated as the agreements are finalized.