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Commission authorizes participation agreements to split tax‑increment for new battery storage on existing solar projects
Summary
Agency staff told commissioners that Clearway Energy will add battery storage to four existing solar projects; the county approved participation and side‑letter agreements to allocate tax‑increment between the solar and new battery entities, and authorized surveying/amendment steps for the Iron Springs site.
Agency staff briefed the commission on proposed participation agreements and side letters that would separately account for battery storage investments added to four existing solar community‑development project areas (Granite Mountain East, Granite Mountain West, Enterprise and Iron Springs). Clearway Energy, which acquired the solar projects, plans to add large battery installations — three roughly 80 MW/4‑hour units and one approximately 50 MW unit — and the agency requests that tax increment from added battery investment be split so the battery LLCs receive the portion tied to their taxable value while the existing solar agreements retain their share.
Staff said the projects represent substantial new taxable value (roughly $100M taxable value for the 80 MW batteries in current estimates) and estimated first‑year total tax increment of about $2.6 million across the four projects; staff projected roughly $200k per project that would not be rebated and remain available locally after interlocal agreements. The county discussed depreciation schedules, decommissioning and recycling plans for lithium‑ion batteries, and sales‑tax implications (battery purchases are subject to sales tax; solar panels were exempt).
For the Iron Springs battery location — which lies just outside the existing project area — staff initiated a survey‑area resolution to allow amendment of the project area and to solicit consent from taxing entities. Commissioners approved participation agreements and authorized agency staff to sign acknowledgement letters and proceed with the survey‑area work to amend the Iron Springs project area if needed.
