Selectboard Will Consider Solar Proposal Monday
by Nancy Wood,
September 8, 2011, page 1.....

At the September 12 meeting, the Selectboard will consider a proposal from AllEarth Services, LLC, (AES) for the installation of 14 net-metered solar trackers on an open field near the septic mounds at Thompson’s Point. The town would enter into a 60 kW Power Purchase Agreement (PPA). There is an initial $1,000 up-front fee; AES would retain ownership of the installation for five years.

According to Selectboard Chair Charles Russell, the agenda will probably include an action item for a decision about moving ahead with an application for a Certificate of Public Good required for net metering. Russell said that the application would not obligate the town to proceed, but would get the process started while the Selectboard sets a date for a special town meeting to give the public an oportunity to comment on the proposal.

The Thompson’s Point site was recommended by AES as having the least shade and best access to utility lines of town-owned sites that were considered.

Under the terms of the proposed PPA, the town would pay a fixed rate of 20 cents per kWh to AES for energy produced and receive 20 cents per kWh credit from Green Mountain Power. According to the proposal, the “project is revenue neutral from day one and saves you money as utility rates increase over (the) five-year PPA term.”

AES provides all maintenance and service during the contract period. After five years, the Town has the option to purchase the equipment for the then fair market value of the equipment, which is estimated at this time to be 30% of current price.

Alternatively, the town could renew the PPA for one or two five-year terms with an adjusted cost per kWh. Under the terms of the PPA, the new rate at the beginning of each renewal term would be based on the then current residential rates charged by the customer’s utility plus 6 cents per kWh.
The current price of the equipment, which would include 14 AllSun Series 20 trackers, is $411,600, so the estimated fair market value for purposes of the buyout at the end of the initial five year term is 30% or $123,480. If the PPA is renewed for another five years, the estimated fair market value at the end is 20% or $82,320; at the end of 15 years it would be 10% or $41,160.

According to AES, “the advantage of keeping projects at or below 150 kW in capacity is the permitting for such projects is free and relatively quick. We will file the required Certificate of Public Good (CPG) permit application and usually can complete an installation in 60-90 days from permitting to final commissioning. The timeframe breaks down as: 45-50 days for CPG permitting and Vermont RERC (Renewable Energy Resource Center) rebate reservation confirmation; 1-2 days final site layout and preparation; 10-15 days for installation and connection to facility from time approved CPG and RERC reservation are received; total of 60-90 days from time CPG application is filed till the project is up and running.”

AES would manage the entire construction process, including all necessary permits. According to AES, in the past two years the company “has designed and built several project of this size in Vermont and has largely standardized the process, increasing efficiency and predictability with construction. Once a CPG is obtained, this project can be built in three to four weeks and will require a new electrical service for the solar energy. Having a new service minimizes impact on existing electrical infrastructure.

The Charlotte Energy Committee reviewed the AES proposal Wednesday evening and unanimously agreed to recommend that the Selectboard proceed with the next steps toward leasing the trackers including pursuing the COPG application, assuming there is written documentation that GMP will continue the approximately six cent solar credit for 15 years.

Russell said there may also be a proposal submitted by VPIRG for the Selectboard to consider. VPIRG has extended its Solar Charlotte program begun last spring that “organizes folks who have wanted to go solar, but needed help figuring out the vendors, equipment, financing and permitting.” VPIRG has been working with residential customers, in partnership with solar installer Alteris Renewables.