Council hears proposal for 5-MW solar farm on 37-acre city parcel

Premier Energy told the North Platte City Council on Oct. 7 that it has designed a 5-megawatt (AC) solar system that could be built on a 37-acre city parcel at State Farm Road and Victoria Lane and produce roughly $750,000 a year in savings at current rates.

The proposal matters because the company said the project could insulate the city from future rate increases, provide renewable-energy credits that could help attract new businesses and deliver long-term net savings if the city elects to own the system rather than sign a third-party power purchase agreement (PPA).

Jeff Cook Coyle, chief project developer for Premier Energy, described the proposed system as roughly 6,000 kilowatts DC (5,000 kilowatts AC) made from about 10,000 solar panels and 25 inverters. He said the project would “put 5 megawatts into the grid, so offsetting your purchases by as much as 5 megawatts at full output.”

Coyle laid out the company’s indicative cost estimate: an installed cost of about $13,678,000 before the federal investment tax credit (ITC). He said the base ITC would produce “you would be getting a check of $4,000,000 from the IRS if you own the system,” reducing the net installed cost to roughly $9.5 million in the company’s model. Premier projected approximately $128,000 in first-year operating expenses and lifetime net savings in the multimillion-dollar range under current assumptions.

Council members asked detailed questions about how the project would affect city power bills. Coyle said the solar installation would reduce both energy and demand charges paid to Nebraska Public Power District (NPPD) and noted that the NPPD demand component is applied to the single highest hour each month: “And that demand charge is based on the single hour per month.” He and other presenters emphasized that city ownership would maximize use of the ITC and the renewable energy credits, while a PPA or third-party ownership would reduce city operational risk but be materially more expensive.

Premier Energy presented two ownership options. If the city purchases and owns the array, the city would receive the energy and renewable energy credits and could hire Premier to operate the site or have the city electrical department operate it. Under a third-party ownership/PPA model, a private owner would retain tax benefits and sell electricity to the city; Premier said that model typically results in higher per-kilowatt-hour cost to the municipality.

On timing and eligibility for the federal ITC, Coyle said developers must show construction started by July 5, 2026, to qualify under the current rules and that “we have a very, very reasonable time frame by 07/05/2026.” The company asked the council to reach a decision by mid-January to align with a planned land purchase closing and preserve the tax-credit timeline.

Council members raised operational concerns: maintenance man-hours (Premier estimated roughly a half-day per month for routine checks), inverter replacement cycles (Premier said inverters typically require replacement about every 15 years and that operating-cost projections include reserves for those replacements), insurance (Premier included $35,000 per year for insurance in projected operating costs, which the presenter said covers $2.5 million of equipment replacement and about $2 million for panels) and decommissioning (the company said decommissioning was not separately costed and asserted salvage value of copper and other materials could offset removal costs).

Other technical and site questions included cybersecurity and equipment origin, siting near existing subtransmission lines, vegetation and mowing (panels would be about 18 inches above grade at rest and Premier recommended low-growing native grass), snow and hail resilience (racking and panels are rated for local loads and hail resistance has improved), and soiling/cleaning (panels do not clean themselves and periodic washing may be needed; soiling was included in production models).

Presenters and council members clarified that the proposed solar array would mainly hedge rate increases and provide cost savings but would not serve as dependable nighttime capacity for large employers; the system can’t supply power when the sun is down. Premier framed the project as both a cost hedge and an economic-development tool for businesses seeking renewable energy options.

No formal vote or commitment was taken at the work session. Premier noted the city has a land-closing scheduled for mid-January and asked council consideration by that date if the city wishes to pursue ownership. The meeting opened and closed without action; the work session adjourned to reconvene as a council meeting at 5:30 p.m.