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Dixon board approves seven-year Solar 1 power agreement, citing immediate savings and tight procurement window
Summary
The Dixon USD 170 board approved a seven-year power purchase agreement with Solar 1 at an estimated 3.6¢ per kilowatt-hour, citing near-term federal incentive windows. District staff and the developer said the deal aims to save roughly $70,000–$82,000 annually in early years and offers an option to purchase the system later.
The Dixon Board of Education voted to approve a contract with Solar 1 on Nov. 19, authorizing a seven-year power purchase agreement (PPA) at a proposed rate of 3.6¢ per kilowatt-hour.
Solar 1 representative Sean Stonecipher told the board the company aims to procure equipment immediately and finish engineering in early 2026, with construction likely in late summer to fall 2026. Stonecipher said changes in federal subsidy rules and foreign-entity compliance coming later in the procurement window made acting quickly important to keep the proposed price and incentives.
District staff acknowledged the contract was finalized quickly — the contract was completed the same day it was presented — and flagged both benefits and risks. Staff said the arrangement is structured as a 7-year PPA that can be extended or, at the district’s option after that period, the district can purchase the installed assets at fair market value and finance that purchase over 10 years at 0% interest. Staff also noted the system is expected to operate for at least 15 years in practice.
In its presentation, Solar 1 projected annual savings to the district in the early years in the range of roughly $70,000 (with a statement that year-one savings were around $82,000 in the developer’s cash flows) and said savings would increase if the district later owned the system. The company proposed installing panels at multiple district locations, including roof projects at the high school, Washington and Jefferson schools, and ground arrays near Reagan.
Board members questioned contractor locality, project size and timeline. Stonecipher said most of his crews and significant work are completed in Illinois and that Solar 1 performs its own engineering and construction rather than relying on multiple outside parties. Staff clarified that the PPA rate covers supply but not on-site storage, and that solar power produced on-site does not replace grid power during outages without batteries.
The board discussed the long-term nature of the commitment — a decade-plus operational horizon — and the risk that future boards would inherit the contract. After additional discussion on expected savings and procurement timing, the board voted to approve the contract by roll call.
Next steps include procurement of equipment in the coming weeks, follow-up engineering and coordination with local utility permitting and construction planning. The contract includes a 365-day installation expectation from signature and an option to extend operations beyond the initial seven-year PPA.
