Oxford authorizes 1 MW solar project at wastewater plant, estimates 76% offset and near‑eight‑year payback
Get AI-powered insights, summaries, and transcripts
SubscribeSummary
Council approved a design‑build contract with Malinc Solar for a 1‑megawatt AC solar PV system at the wastewater treatment plant, with an estimated contract near $2.6 million, expected to offset about 76% of the facility's annual electricity and an estimated payback just under eight years using investment tax credits.
Oxford City Council authorized a design‑build contract with Malinc Solar to build a 1 MW AC solar photovoltaic system at the city’s wastewater treatment plant.
Public works staff said the plant used about 2.3 megawatt‑hours in 2024 and is the city’s largest electricity user. The city issued an RFP in October, received five proposals, interviewed the top two and recommended Malinc Solar as the lowest‑investment bidder. City staff identified an estimated contract amount in the neighborhood of $2.6 million and said the project is expected to offset approximately 76% of the plant’s annual electricity consumption.
Staff also said the city plans to utilize investment tax credits, including direct pay provisions that could reimburse roughly 30–40% of capital costs, and estimated a payback period of just under eight years assuming a 6.6% annual electricity escalation. Councilors asked whether the contract included ongoing service or maintenance; staff said the design‑build agreement does not include long‑term service in the base contract but noted equipment typically has warranty coverage and that additional service would be an extra cost. The staff report said staff training will be provided and modules generally have long manufacturer warranties, while equipment has a one‑year warranty.
Council members framed the project as consistent with city climate goals and as a long‑term cost saver for the city’s largest electricity account. The resolution passed by voice vote; staff estimated the project could be completed by the end of next year.
