Board approves first-reading of 25-year solar PPA for Sunset Reservoir after contested amendments

San Francisco — The Board of Supervisors on Tuesday voted to pass on first reading an ordinance authorizing a 25-year power purchase and site lease agreement with Recurrent (developer referred to in the meeting as “Recurrent”) to build, own and operate a 5-megawatt solar photovoltaic system on the rooftop and adjacent land at the Sunset Reservoir.

The vote on the ordinance as amended was recorded as 7 ayes and 4 noes. The ordinance advances the contract to the City—6s next legislative step (first reading passed); additional procedural steps and final approvals remain.

Why it matters

The contract would nearly triple the city—6s solar capacity, create an estimated 71 construction and related jobs, and include a binding commitment to direct at least 30 percent of those jobs to disadvantaged San Francisco residents, supporters said. The agreement also relies on federal tax incentives that private-sector developers can use to lower project cost; opponents argued those financing terms limit the city—6s flexibility and could saddle ratepayers with above-market prices over the life of the contract.

Key facts

- Project: 5 MW solar photovoltaic array at Sunset Reservoir; package includes a 25-year power purchase agreement (PPA) and a site lease. - Jobs: Sponsor-stated estimate of 71 jobs, with a 30 percent minimum target for hiring from disadvantaged communities and commitments to union job classifications. - Cost language: The ordinance packet references a guaranteed maximum PPA cost of about $60,218,000 and specific buy-out pricing formulas that were central to the debate. - Oversight changes: The board adopted amendments adding regular PUC reporting and clarifying controller certification before payments, though other proposed changes were defeated.

What the board debated

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