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Mendocino pauses Ameresco solar plan after revised cash flow; supervisors form ad hoc
Summary
Staff presented a revised cash-flow for an Ameresco energy-savings project showing a much slower payback once module availability and inverter choices were updated. The board stopped short of authorizing construction and created an ad hoc (Supervisors Williams and Haschak) to work with staff and Ameresco on a shovel-ready plan.
Mendocino County staff told the Board of Supervisors on March 24 that an updated cash-flow analysis for a proposed Ameresco solar array using PG&E carbon-reduction funds now shows a substantially reduced net present-value and a payback that extends past the typical useful life of photovoltaic panels.
Assistant CEO Sarah Pierce summarized recent design and market changes that reduced modeled energy production and raised costs, including the need to select modules not on the previously scoped list because of supply and federal foreign-entity-of-concern (FEOC) guidance. "Based on this new information...solely on a present day value calculation of the cash flow, the project will be past the useful life of the break even point," Pierce said.
An Ameresco representative explained that demand and inventory shifts late in 2025 forced the company to change module and inverter selection for this site, which decreased per-module watts and increased inverter counts and losses. The company said the original high-wattage panels were not strictly banned for county procurement but would not be eligible for certain federal investment tax-credit treatments; staff said the county had not planned to pursue an investment-tax-credit path because of timing and compliance constraints.
Given the updated February cash-flow, which reduced the previously estimated 25-year net savings by roughly $869,000 on a present-value basis, staff recommended pausing final authorization and seeking direction from the board. After public comment urging continued pursuit of solar and local grid options, the board unanimously created an ad-hoc committee of Supervisors Williams and Haschak to work with staff, Ameresco and other partners to develop a shovel-ready plan and vet new financial analyses.
The ad hoc will meet with staff and the vendor to review alternatives including procurement options, federal credit eligibility and site constraints, and will return recommendations to the full board.
