Fort Madison officers are going solar and can think about a plan to take action at Tuesday night’s assembly of the Fort Madison City Council.
The most important possibility mirrors what Lee County Supervisors did two years in the past. It consists of a personal firm, Red Lion Renewables, putting in and proudly owning all of the solar panels and tools. In return, town would conform to buy the electrical energy from Red Lion for 30 years.
In his report back to the council, City Manager David Varley states the acquisition worth could be decrease than what town is now paying per kilowatt.
“One of the benefits is that a private company can take advantage of the solar tax credits and then pass some of those savings onto the city,” Varley states in his report. “Also, the city does not have to worry about operation and maintenance costs or damage to the panels because we do not own the panels and appurtenances.”
Further, Varley says this plan means town is not going to must borrow or incur debt to modify to solar generated electrical energy. Instead, it’s paid by town’s month-to-month electrical payments.
The plan requires solar panels to be put in at 9 metropolis buildings: City Hall, the Water Tower, Ortho Way Sewer Booster, Riverview Drive Sewer Booster, Avenue G Water Booster, Sheriff Station Water Booster, Airport Office, Fort Madison Public Library, and Shopton Park.
Valley says the panels for Shopton Park are to be ‘gifted” to the city.
He says that switching to solar energy at these nine locations will save the city $20,000 per year, and $1.7 million over the next 30 years.
There is also an option where the city purchases the equipment after 15 years, which could increase this savings to more than $2 million over the 30-year period.
“Because of the tax credits, the city could not ‘buy out’ the contract till 12 months 6. If that occurred, the acquisition pricewould be $764,531,” states Varley.
He says this plan is a “quick and easy way” for town to start utilizing solar energy for some amenities with out going into debt to buy the tools.
The settlement requires town’s value per kilowatt to extend 2.5% per 12 months after the primary 12 months, nonetheless Varley says the beginning worth is lower than what town is paying now, and the financial savings is calculated beneath the idea, based mostly on nationwide averages, the speed town is paying its present supplier will enhance 4% per 12 months.
Another possibility is for town to borrow the cash and buy the tools, nonetheless town wouldn’t be eligible for the tax credit. The metropolis would even have to rent and pay a solar advisor to deal with the specs and town must undergo a proper bid course of which is able to lead to a discount within the metropolis’s financial savings and a delay in changing to solar energy.
Varley is recommending the council talk about the proposed Power Purchase Agreement with Red Lion that has the corporate putting in and proudly owning the tools and town agreeing to buy electrical energy from the corporate.
The association is mainly the identical as what Lee County Supervisors permitted two years in the past. The settlement was initially with Michael Mohrfeld of Sunshine Power LCC, however a change in financing transferred the settlement to Red Lion Lee County Solar LCC in January of 2000.
Mohrfeld put in the panels which can be owned by Red Lion and the county agreed to buy its electrical energy from the corporate.
A 12 months later, in January of 2021, supervisors realized that on three buildings alone the solar panels, together with lighting upgrades, have been saving the county $32,225 yearly.
The panels on the Department of Human Services constructing in Keokuk, the North Lee County Office Building in Fort Madison, and a battery of panels on the Lee County Conservation Building are saving $20,426 yearly. Lighting upgrades on the Lee County Jail are displaying an annual financial savings of $10,130, and upgrades on the Heritage Center in Keokuk are doing the identical to the tune of $1,669 per 12 months.