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Poway Unified: solar projects progressing but SDG&E interconnection delays slow some sites
Summary
District and partner Forefront Power said several solar sites are complete and producing power, but multiple installations await SDG&E interconnection approval. The projects are financed through a 20‑year PPA with no upfront cost and a 95% performance guarantee, staff said.
Poway Unified trustees received a detailed update Dec. 17 on the district’s multi‑site solar program and its financing under a 20‑year power‑purchase agreement (PPA).
Nate Smith, the district’s Forefront Power representative, said the district piggybacked on a statewide RFP run by SPUR (a joint powers authority) to secure the project and that Forefront will finance, build, operate and maintain the systems under a PPA. He emphasized contract features negotiated through the RFP process: no upfront cost to the district, operations-and‑maintenance included, and an industry‑standard 95% production performance guarantee.
Smith described the PPA as a hedge: "we were also able to negotiate a 0% escalator ... which means you basically have a hedge for that increment of power against utility rate increases," he said, noting the PPA payment per kilowatt‑hour is lower than current SDG&E retail rates.
District staff and Forefront identified completed sites that are producing energy (Westwood, Design 39, Rancho Bernardo Heights and Westview) and several others that are effectively built but waiting on SDG&E for permission to operate (PTO) and utility interconnection. Forefront explained the interconnection process requires mechanical completion and SDG&E safety checks before the utility grants PTO and the project reaches commercial operation.
Trustees raised timing concerns. Forefront said mechanical completion is often followed by a weeks‑long SDG&E review and that site‑specific field conditions and design changes (including re‑submittals to the Division of the State Architect) contributed to delays at some sites. On parking impacts at Del Norte, builders expect fencing and staging to be removed in roughly six to eight weeks to restore parking availability.
District staff noted options at the end of the PPA term: renew the PPA, purchase the systems at a contract buyout price, or require Forefront to decommission and restore sites. Forefront said photovoltaic modules typically retain useful life beyond 20 years (about 30 years with degradation), and inverters are scheduled for replacement at about year 15 under the agreement.
What’s next: staff said they will reconcile final invoices and credits, and return with final reconciliation figures and a summary for board approval in January 2025.
