Committee approves authorization for city to host net‑metering credits from regional solar projects

The Manchester Board Mayor & Aldermen’s special committee on energy voted to authorize the city to enter into group net‑metering credit purchase agreements that let outside developers use the city as a host for solar and hydro project energy credits, officials said.

Tim Clardy, public works director, told the committee the agreements would allow developers to secure financing by pairing projects with a public host that has a large utility bill. Competitive Energy Services, the city’s energy consultant, helped design the request for proposals and advised staff on three recommended developers. Clardy said the projects are located in Somersworth, Stoddard, Hinsdale, Stratford and Goshen.

Clardy provided revenue estimates tied to electricity prices: "It’s estimated right now that in fiscal year 2025, these agreements would generate $17,000 in revenue. In fiscal year 2026, it would be $135,000. In fiscal years 2027 through 2045, about $208,000 annually," he said, emphasizing the figures are estimates and depend on market prices.

Committee members sought a plain‑English explanation of how the program works. Keith Sampson of Competitive Energy Services said developers need a public host to claim financial credits under the state’s net‑metering framework and that the local utility must accept the generation: "It has to be physically moved to the grid, so the utility has to take title to the power," Sampson said.

Alderman Chapianta raised market‑risk concerns about locking into higher prices. Clardy responded that the recommended Ameresco projects offer about a 20% discount to the standard rate and that Kearsarge’s proposal is roughly a 12.5% discount, adding, "The city is always guaranteed to make revenue under these agreements." He cautioned that future changes in rebates or subsidies could reduce returns.

The committee also discussed where revenue would be credited. Clardy said prior energy rebates have gone into capital improvement project (CIP) funds for energy work but that, absent a specific directive, most revenues would flow to the general fund. Aldermen differed on whether to earmark funds; one member argued using the general fund lets the budget process allocate money across departments.

Alderman Safi moved to approve authorization for the city to enter the group net‑metering credit purchase agreements; Alderman Theriault seconded. The committee decided by voice vote, with the chairman announcing, "the ayes have it." The item is scheduled to report out to the full board on Dec. 3. A subsequent procedural motion to return the item, moved by Alderman Kantor and seconded by Alderman Morgan, also passed by voice vote.

Competitive Energy Services representatives at the meeting included Keith Sampson and Zach Halleck. Clardy said CES will lead negotiations and the city solicitor will complete final legal review before any agreements are executed.

Next steps: the committee will report the approved authorization to the full Board Mayor & Aldermen on Dec. 3 for final action; staff will complete legal review and return with finalized agreements for board consideration.