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Kasson staff plans solar and battery projects to reduce peak energy costs
Summary
City staff said they are pursuing solar projects and battery storage across municipal buildings to capture a 30% federal tax credit and to level peak electricity purchases, and said a proposal could return to council next month.
City administration updated council on work to package grant applications for solar projects across municipal facilities and on analysis of battery storage to manage peak electricity demand.
Staff said a 30% federal tax credit for solar/battery projects is currently available and could cover a substantial portion of project costs; applications for state grants and federal tax-credit-friendly packages are being prepared. Potential sites discussed include park shelters, well houses, the sewer plant, public works and City Hall. Staff said inverters and balance-of-system equipment drive much of the cost and that they will evaluate phased approaches.
On batteries, staff said storage could shave summer peak loads — reducing capacity purchases in the market — which in turn would lower annual capacity charges that hit the city’s electric fund. Staff reported early calculations showing potential peak reductions that could materially lower capacity payments and indicated they may present a proposal to council as soon as next month, subject to the substation study currently under way.
