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Supervisors back negotiations for county solar power purchase agreements to boost renewables
Summary
The board directed staff to negotiate power purchase agreements (PPAs) for multiple county solar projects after staff outlined costs and timing; board approved moving forward with PPAs rather than immediate county ownership due to capital constraints.
Santa Barbara — The Board of Supervisors on March 4 directed county staff to move forward with negotiating power purchase agreements for a package of county solar projects after an in-depth staff presentation on costs, interconnection deadlines and project options.
General Services and Energy Division staff presented eight candidate solar sites, including ground-mounted arrays and parking canopies at facilities such as the Northern Branch Jail, Foster Road campus, Cachuma and Calle Real campus. Staff compared ownership (direct purchase) and power purchase agreement (PPA) models, explained key scheduling constraints tied to the California net energy metering (NEM 2) program (permission-to-operate deadlines in April 2026 for some sites) and noted that PPA structures require no upfront county capital but permit long-term purchases of renewable electricity.
Staff said county ownership provides the highest net long-term savings but would require debt financing and potential use of internal-service funds; PPAs would allow immediate development without capital outlay and still yield long-term avoided-cost benefits. Staff recommended negotiating PPAs for all sites, prioritizing NEM2-tagged projects because the tariff provides more favorable crediting for exported power.
Board members asked about battery-storage options, microgrid/islanding capability and long-lead items (transformers, switches) needed for interconnection. Staff said battery systems increase costs and while they boost resiliency — especially at emergency sites like fire stations — the decision on batteries will be a separate, subsequent conversation. Contractors responding to the county’s request for proposals described readiness to perform early geotechnical and site-survey work at their own risk to help meet the NEM 2 timeline.
Supervisor Hartman moved the staff recommendation to negotiate PPAs for the recommended projects (agenda item Dept. 4); Supervisor Lee seconded. The motion passed on a majority voice vote. County staff will begin contract negotiations and return to the board with finalized agreements.
