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Hanford staff pitches $3.68M Aptera solar contract for wastewater plant to lock in NEM‑2 credits
Summary
City staff presented a standalone 845 kW solar contract with Aptera Energy Services for $3.68 million to capture an expiring net‑energy‑metering credit (deadline Apr. 14, 2026). Council probed cost, procurement process and maintenance guarantees; staff said a combined wastewater+solar package will return in January.
Hanford — City staff presented a proposed solar‑only contract with Aptera Energy Services on Dec. 16, recommending award of a stand‑alone 845‑kilowatt photovoltaic system at a price of $3,680,000 to be installed at the wastewater treatment plant.
Director Frank Centeno told council the timing responds to an expiring net energy metering program (referred to in staff materials as NEM‑2) with an April 14, 2026 deadline for credit eligibility. The standalone solar system is estimated to generate about 1,300,000 kWh per year against the plant’s present load of roughly 3,700,000 kWh — about one‑third of current demand — and staff said the full energy benefit is expected when the solar array is combined with other energy conservation measures (ECMs) planned for the wastewater facility.
Centeno and City Manager Chris Tavares described project status: 40% engineering is complete, switch gear and materials have been ordered, and plan checks/permits are ‘permit‑ready.’ Staff noted a sole‑source finding under government code language applicable to energy projects and said the Cummings Group reviewed pricing against a public‑sector database; the consultant reportedly found the bid within public‑sector norms (roughly $6.50 per watt in comparable public projects). Staff proposed returning Jan. 20 with funding options for the solar‑only award and a combined ECMs package later for Proposition 218/financing consideration.
Council members raised several procurement and cost questions: one member said the city appeared to be paying about $1 million more than anticipated and expressed concern about paying for multi‑year maintenance to a contractor that might not be in business later. Staff said negotiated contract language will address performance guarantees, inverters and maintenance plans; Aptera’s proposal includes a guaranteed energy‑performance mechanism that triggers reconciliation every five years.
Next steps: staff said it expects to return Jan. 20 for funding approval of the solar‑only contract and to bring a combined wastewater+solar pro forma in January. Staff cautioned that if the city uses only wastewater funds for the larger combined project, some capital projects may be deferred.
