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Sterling Heights pitches $1.18M solar field for city campus; staff say tax credit cuts city cost to about $712K
Summary
A sustainability planner asked council to include a city‑campus rooftop solar project in the FY2027 capital plan, estimating 27% of three municipal buildings’ electricity would be offset, payback in about 8½ years and an estimated after‑tax city cost of roughly $711,754 if the federal 30% investment tax credit applies.
Sterling Heights staff proposed installing rooftop solar on City Hall, the police department and the library as part of the FY2027 capital plan, saying the system would reduce the city’s electricity purchases and support its climate action goals.
"This would reduce our investment down to $711,754," sustainability planner Alexis Weinberg said, describing an initial vendor estimate of about $1,177,791 and noting the federal solar investment tax credit covers 30% of project cost if time‑sensitive construction or service deadlines are met. Weinberg said the modeling shows the solar array would generate about 27% of the three buildings’ electricity and equate to an approximate 8.5‑year payback under conservative grid‑price escalation assumptions.
Weinberg and finance staff emphasized timing risks: projects must be placed in service by Dec. 31, 2027 (or begin construction before July 4, 2026 for safe‑harbor treatment) to qualify for the full tax credit. The city also said it expects to issue an RFP if council approves the budget request so providers can confirm site conditions and offer final pricing.
Council members asked whether other grant opportunities or partnerships could lower the city’s upfront cost; Weinberg said staff will pursue grants where available but that the federal tax credit (a non‑grant incentive) is the largest offset currently available. Council asked staff to return with RFP timing, grant search results and (if relevant) estimates for adding other municipal roofs, such as fire stations, to the package.
