Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Solar Project topic
No spam. Unsubscribe anytime.
Munhall hears PPA options for ground-mounted solar; council to review contracts before choosing developer
Summary
At a May 13 workshop, Amelia Agan of the Pennsylvania Solar Center presented a ground-mounted solar feasibility study and two developer proposals; the suggested power-purchase agreement (PPA) would require no upfront borough funds and pass savings through over a 25-year term. Council requested full contracts for solicitor review and expects a developer choice at next week’s meeting.
Amelia Agan, assistant director of the Pennsylvania Solar Center, told Munhall Borough Council on May 13 that a ground-mounted solar array on borough property could offset the borough’s electricity use (street lights excluded) and be provided to the borough under a developer-owned power purchase agreement that requires no upfront cost to the borough.
The consultant said Capital Good Fund (a nonprofit CDFI) would own and operate the system under the model presented and sell kilowatt-hours to the borough under a fixed supply rate that is expected to be lower than the borough’s current price. “They are the owner and developer of the solar system… they are the owner and developer of the solar system, and then the kilowatt hours that the solar system will provide, they’ll sell to you at a standard rate,” Agan said.
Why it matters: the developer-owner/PPA approach uses federal tax incentives captured by the system owner to reduce the borough’s supply cost and to price-protect the borough against volatile wholesale markets over the life of the contract. Agan said Capital Good Fund purchased inverters for this project to safe-harbor the project for a multi-year construction window and preserve tax-credit value; the safe-harbor gives the project until Dec. 31, 2029, to be completed under the program described.
Agan outlined two EPC proposals received in response to an RFP — a local firm, EIS, and a State College–based firm, VAI — and explained the price differences. “VAI has some interesting ways that they have secured equipment already, like panels and such,” she said, adding that VAI’s prior equipment purchases allow it to offer stronger pricing. The council discussed how differences in procurement timing and new federal “foreign entity of concern” guidance are affecting vendor pricing.
Council and the public pressed for numbers and contract review. Agan said previously discussed lifecycle savings estimates varied with assumptions (she referenced an earlier estimate near $480,000 and said some modeling showed amounts under $600,000) and confirmed the savings figure discussed in public comment covered a 25-year period. A resident asked who would maintain the land under the panels; Agan said the developer would own and maintain the system and be responsible for decommissioning at the end of the contract term, while the borough would retain ownership of the land.
Contract review and next steps: a council member asked for all draft contracts to be provided to the borough solicitor before any commitment. “Can we get a copy of the contract before we do anything? I mean, I think that’s gonna be fair to make sure that our solicitor reviews it to protect them,” one council member said. Agan confirmed the Center and Capital Good Fund are working through legal review and will provide documents for solicitation and solicitor review; the council set a goal to choose a preferred developer at next week’s meeting but did not vote at the workshop.
The council also directed staff to circulate firm modeled savings and the proposed PPA language before the vote.
The borough has not signed any final contract; any PPA would be subject to solicitor review and council approval.
