Pasquotank commissioners approve Tanglewood Solar permit after debate over decommissioning bond

The Pasquotank County Board of Commissioners unanimously approved Major Special Use Permit 25-01 for Tanglewood Solar, LLC at a public hearing on June 2, 2025, allowing construction of an approximately 8-megawatt solar farm on about 76.62 acres at 615 Glade Road.

The project, presented by Cooper Norris, attorney for Headwater Energy, and Jason Nemeth, vice president of development, will interconnect on Albemarle Electric Membership Corporation's distribution system and use about 75 acres of the parcel. Planning Director Shelley Cox entered the staff analysis into the record and told the board the site meets the zoning and ordinance standards, including the setback and drainage requirements in Pasquotank County's Section 9.03-27 for solar farms.

Why it matters: the site is classified Low Density Residential in the county's 2023 Land Use Plan and is in the A-1 (agricultural) zoning district; approval required a Major Special Use Permit and conditions to ensure setbacks, landscaping, stormwater controls, and a recorded decommissioning plan.

Commission discussion centered on the decommissioning estimate and the mechanics of the bond required by county ordinance. Planning Director Shelley Cox identified a staff-recommended decommissioning bond of $487,500, calculated as 1.25 times a 20-year inflation-adjusted decommissioning cost in the applicant's plan ($390,000). Attorney Cooper Norris and engineer Jen Lester told the board the applicant’s decommissioning report shows two figures: a 20-year cost in current dollars ($251,000) and a 20-year inflation-adjusted cost ($390,000). Norris said the applicant’s preferred approach is to base the bond on the current-dollar estimate and require that the decommissioning plan and bond be updated every five years during the life of the project.

"The decommissioning plan shall be updated every five years for the life of the project," Cooper Norris said, offering that as a condition the applicant would accept.

Engineer Jen Lester described the method used to estimate decommissioning costs, saying the firm relied on current construction-cost data, Bureau of Labor Statistics inflation factors and RSMeans, and noted salvage value assumptions for recyclable materials. Lester told the board the $251,000 current-dollar estimate is conservative when salvage value is considered and that the bond calculation required by ordinance does not account for salvage.

Applicant Jason Nemeth said the project is a 20-year initial lease with up to four five-year extensions and that module lifetimes and equipment upgrades often extend useful life: "It is their intent to keep them operating and in good health as long as possible," Nemeth said, describing equipment warranties and routine maintenance as reasons the project would remain in operation.

Appraiser Rich Kirkland offered market analysis compiled from paired-sales and sale-resale comparisons across North Carolina and the Southeast. He said his review of roughly 30 local sales (and a broader supplemental data set) shows no measurable adverse effect on nearby property values from similarly sited solar projects. "Based on the research we have, including in the report, we conclude that this project as presented does not have any impact on the adjoining property values," Kirkland said.

Several commissioners pressed the applicant and staff about assumptions: Commissioner Sean Lavin questioned the durability of the decommissioning numbers and the use of salvage value in the estimates, while Commissioner Sam Davis sought clarity on lease length and the timeframe used for cost estimates. Planning Director Cox and the applicant clarified that the packet contained a misstatement of the lease term and that the correct initial lease is 20 years with four five-year extensions (up to 40 years total), and the board ordered a correction to Exhibit A.

Formal action: a motion by Commissioner Sam Davis, seconded by Commissioner Barry Overman, approved MSUP 25-01 with the staff findings and conditions, corrected the lease term in Exhibit A, and included the applicant’s offered condition that the decommissioning plan be updated every five years for the life of the project. The motion carried unanimously.

What was required by the county: the permit application included a site plan, drainage report (reviewed by the county stormwater engineer), and a decommissioning plan to be recorded in the Pasquotank County Register of Deeds. The ordinance requires a bond or letter of credit equal to one and one-quarter times the estimated decommissioning cost; the board applied that standard in approving the permit.

Next steps: the applicant must record the decommissioning plan, post the required financial assurance prior to building permits, and obtain building and electrical permits and final inspections before beginning power production. The board also accepted the applicant's expert exhibits and qualified the three expert witnesses presented during the hearing.