Council approves 25-year solar power purchase agreement for police department carports

The Chino City Council on July 3 approved a 25-year power purchase agreement (PPA) with SiteLogic of Ontario to install solar photovoltaic carports at the Chino Police Department.

Deputy Director of Development Services Chris Corbin and Director Warren Morlione presented project background, noting an earlier selected developer failed to secure financing and the city reissued a request for proposals in October 2024. SiteLogic was selected from eight responses following interviews and consultant review. SiteLogic will construct, operate and maintain solar carports at no capital cost to the city; the city will purchase generated electricity at a fixed rate of 17.1 cents per kilowatt-hour for 25 years.

Staff projected the system would offset about 84% of the police department’s energy consumption. Corbin said the city’s current SCE rate is about 16.7¢/kWh; under the PPA the city may pay slightly more in year one but would begin to realize savings as utility rates rise. Using a conservative 5% annual escalation assumption for SCE rates, staff estimated net savings of roughly $4.4 million over 25 years in a baseline scenario, and up to about $5.9 million if actual utility escalation is higher. Corbin noted the city’s five‑year historical average increase in its bills had been higher (an average annual figure cited in the presentation), which would increase projected savings.

The agreement includes performance guarantees: years 1–10 at 95% of rated capacity and years 11–25 at 90%, with SiteLogic owing reimbursement to the city if production falls short. Termination fees if the city ends the contract early begin at roughly $9 million and decline to about $100,000 by year 25. The city has option windows to purchase the system at years 7, 10, 20 and 25 at the higher of appraised fair market value or the applicable termination fee.

Council members asked about timeline and risks. Corbin said building permits must be final by April 14, 2026 to meet program rules (interconnection may follow), with construction expected to start in September and interconnection in February of the anticipated commissioning year. He flagged legislative and regulatory risks (changes to federal tax credits, CPUC rules on compensation for distributed generation, and tariffs) and said SiteLogic sources most materials domestically to reduce supply risk. The council asked about camera coverage under carports; staff confirmed a camera budget has been included.

The motion to approve the PPA passed on a 4–0 vote (one member absent).