Fair board authorizes executive director to finalize $2 million solar project with Nashville Electric Service

The Board of Fair Commissioners voted to authorize the executive director to finalize and sign contracts with Nashville Electric Service to install a rooftop solar array at the fairgrounds, a project for which roughly $2,000,000 in capital spending had already been authorized.

Kendra Apkowitz, an operational infrastructure official in the mayor’s office, told the board the proposal uses a TVA/NES flexibility program that would allow the fairgrounds to install the maximum feasible rooftop array and sell the generated power to Nashville Electric Service. "Under the flexibility program, we would actually be maxing out the amount of solar we can install on the rooftops of both of the expo buildings and the shed, and then we would be selling that electricity back to Nashville Electric Service," Apkowitz said.

The project remains subject to two primary negotiation points: the rate Nashville Electric Service will pay for the electricity and the disposition of renewable energy credits (RECs), which affect the fairgrounds’ ability to claim renewable generation for Metro’s renewable portfolio standard. Apkowitz said the city has budgeted for the full install cost but that the board could realize additional revenue if it captures federal tax benefits: "There actually is an investment tax credit of, up to 30% that we do plan to take advantage of," she said, noting the credit could amount to roughly $600,000 and that timing is critical.

Laura (the executive director) framed the project as a learning opportunity: "This is our first agreement of this type between NES and Metro. There's not been a project like this. We are the guinea pigs again," she said, describing the need to work with Metro Legal and NES counsel. Counsel and a contract vendor (Lightwave Solar) have been involved in preparatory procurement work; the vendor has a purchase order but has not received a notice to proceed pending final contract terms.

A commissioner moved to grant the executive director authority to complete negotiations and sign the agreement if the finalized terms are favorable; the motion was seconded and the board voted to approve the authorization. The authorization does not remove subsequent Metro Council review; Laura noted the council will have to consider the project as well.

Next steps identified by staff include finalizing power purchase pricing with NES, negotiating REC treatment, and, if terms are acceptable, issuing a notice to proceed to the selected contractor. The board was told the project is expected to produce net positive annual cash flow for the fairgrounds even if RECs are retained or sold under different accounting scenarios.