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Pocomoke City council raises alarms about long-term solar lease payments and seeks contract review
Summary
Councilors at the May 28 work session said solar arrays on city land have changed hands multiple times, that the city receives monthly net‑generation payments staff described as roughly $18,000–$25,000, and that some speakers believe the city may be bound by a 40‑year contract; councilors asked staff to locate the contracts and report back.
During the May 28 Pocomoke City work session, several councilors pressed staff to locate and review the contracts governing solar panels sited on city land, saying the agreements have changed ownership repeatedly and that the financial terms may be unfavorable to the city.
Councilors said staff reported the city receives a monthly net‑generation payment that staff characterized in the meeting as roughly between $18,000 and $25,000, which has been applied against wastewater plant electricity costs. Speakers also said the solar agreement terms may extend for decades; one participant in the discussion said the city appeared locked into a 40‑year arrangement. Several council members expressed surprise at the magnitude of monthly payments and urged staff to identify the current contracting party and any options for renegotiation or charging land rent.
Miss Matthews confirmed the city receives a monthly net generation check and that staff would search records for the original letters and current contract documents. Councilors discussed whether the city could pursue a more favorable structure that captures land rent or otherwise increases the municipal share of the economic benefit, and said they will follow up once staff locates the contract files.
No formal action to alter the contracts was taken at the work session; councilors directed staff to report back with the documents and relevant history so the council can decide whether further legal or contractual steps are warranted.
