Selectboard Takes First Step Toward Solar
by Nancy Wood,
September 22, 2011, page 1.....

The room was full at the Town Hall on September 12 when the Selectboard took up the issue of solar power for town buildings. David Blittersdorf, owner of AllEarth Renewables, was present with Caleb Elder to clarify details of their proposal for a 60 kW project with a lease purchase agreement for 14 solar trackers. Several community members spoke, both for and against. Suzy Hodgson, chair of the Energy Committee, reminded the group that the Town Plan includes alternative energy, as does the mission of the committee. Hodgson reported the committee’s recommendation that the Selectboard give the go ahead to AllEarth to apply for a Certificate of Public Good (COPG) from the state. The board voted in favor of doing so.

AllEarth’s preferred location for the project is at the corner of the field on the south side of Thompson’s Point Road just west of Flat Rock Road, because there is already a utility pole located there that can be used for the net metering of the project.

After discussion of some of the AllEarth proposal and of a second proposal from Alteris Renewables, the board voted 4-1 in favor of pursuing the COPG with the understanding that there will be further review of both proposals before a decision is made to accept either (or none). Blittersdorf said that if the COPG is received, AllEarth would be willing to transfer it to Alteris if the Town decides to go that route.

The Alteris proposal is for an ownership model, with the Town purchasing 14 stationary units. It is also a 60 kW project, but about 20% less power is projected to be produced. The purchase price is $333,000, which would be offset with a $100,000 solar incentive rebate from the State of Vermont.

The AllEarth proposal includes options for the town to purchase the trackers after five years for about $123,480, which is 30% of the current price of $411,600, or at lower amounts in ten or 15 years.

During the first five lease years the Town would pay AllEarth a fixed rate of 20 cents per kWh in equal monthly installments for power produced. Green Mountain Power (GMP) would credit the Town at its utility rate (currently 13.45 cents per kWh) plus a solar incentive of 6.01 cents per kWh. There would also be an upfront $1,000 fee that would be reimbursed with purchase after five years, or half would be reimbursed with purchase after ten years. If utility rates increase moderately, the Town would experience positive cash flow offsetting the $1,000 upfront fee during the first five years.
With the Alteris proposal, the Town would receive a similar credit from GMP for power produced by the Town-owned array, based on the current utility rate plus the 6.01 solar incentive. Alteris estimates that payback of the purchase price would take 14 years if utility rates increase at 5% per year.

According to Hodgson, the Public Service Board has guaranteed the 6.01-cent incentive for ten years, but no longer than that.