Board approves amended option allowing substitute Green Skies solar project; city to receive upfront incentives

The Board of Aldermen approved a first amendment to the city’s option agreement with Green Skies Clean Energy LLC that allows the developer to substitute a project and pursue state renewable energy incentives in 2026.

Finance Director Michael Leblanc and the city’s renewable-energy consultant described the virtual net-metering arrangement: Green Skies will develop solar arrays in Eversource territory and pair the arrays with several municipal electric accounts as “beneficial accounts.” The developer will pay the city upfront incentive payments when arrays enter service and provide 20-year bill credits and revenue streams from the state program. The city negotiated upfront, lump-sum payments for each project to give early capital for local use; staff said approximately $600,000 of the roughly $1.1 million total incentive would be paid up front across projects, with the remainder paid over 20 years in bill credits or payments.

The amendment allows Green Skies to substitute the Quinn South Solar Project in Marlboro for a Hartford project that hit regulatory hurdles. City staff said Green Skies bears the development, construction and operating cost for the arrays; the city’s role is to pair the municipal accounts and receive the incentive payments. Finance Director Leblanc said the city typically would deposit the incentive proceeds into the general fund and could direct funds to capital projects through the usual budget-transfer process.

Council members asked about the magnitude of developer profits and whether the city could negotiate larger shares. Staff said Green Skies submitted the best package in a 2024 RFP process and that upfront payments were negotiated to give Waterbury an immediate benefit. The board approved the amendment.