Solar Energy – Let’s Do It Right
Commentary by Bill Bruett,
November 17, 2011, page 3.....

The proposal currently before the Town of Charlotte Selectboard to install 14 solar trackers in a field in a town-owned Conservation District is not financially or environmentally justified.
On the surface, this deal doesn’t sound too bad. But under close scrutiny it’s the wrong time, the wrong place and the wrong financial structure.
It’s the wrong time. 
The cost to produce solar photovoltaic (PV) modules has fallen from $50 per peak watt in 1980 to $3 per peak watt in 2011. As Paul Krugman of the New York Times notes: “There is now talk of a ‘Moore’s Law’ in solar energy.” In the computing world, Moore’s Law holds that the price of computing power drops about 50% every 18 months. The price of solar energy is not dropping as fast, but it is safe to assume that costs and, no doubt, size of trackers will shrink in future years.  The only urgency appears to be to give AllEarth Services the benefits of renewable energy and tax credits as soon as possible.  It’s the wrong place. 
Residents and visitors to Charlotte marvel at the scenic beauty of the town and surrounding countryside. The Town Plan was thoughtfully adopted with a goal of preserving certain areas designated as Conservation Districts. The intrusion of 14 trackers, each 22 feet wide and 22 feet tall (18-foot panels plus 4-foot stands) will destroy the scenic and historic integrity of a designated Conservation District.
It’s the wrong financial structure. 
The Town of Charlotte gets no financial advantage. All of the financial benefits accrue to AllEarth Services, LCC. And the town is making a big bet that the SolarGMP program will survive for 15 years. Under the current program, the $0.06 incentive payment will continue for ten years from initial installation. After ten years, solar power may have reached a point where financial incentives are no longer needed.  If that happens, the town must still pay AllEarth the going GMP rate plus $0.06, but it may no longer be receiving the incentive payment from GMP.  At current electric rates, that would represent a 44% electricity cost penalty to the town. 
Renewable energy and energy efficiency efforts rightly enjoy the support of federal, state and local government. Driven by tax incentives and a will to lessen dependence on fossil fuel, corporations and individuals are aggressively pursuing renewable and energy conservation alternatives. Much progress has been made.  However, all efforts are not financially or environmentally sound.
Under the terms of the Purchase Power Agreement between AllEarth Services, LLC and the Town of Charlotte, 14 solar trackers will be installed on land designated in the Town Plan as a Conservation District. The town will be obligated to purchase 82,320 kWh at $0.20 per kWh for a total cost of about $16,500 per year. The electricity produced will generally be sufficient to support the power needs of town-owned facilities. The town’s current Green Mountain Power charge is $0.1388 per kWh.  But, under the SolarGMP program, GMP will credit the town $0.06 plus $0.1388 per kWh produced by the solar panels.  So, the net effect is almost breakeven for the town, assuming no rate changes. The contract runs for three consecutive five-year terms. After the first five years, the price will be adjusted to the then current GMP rates plus $0.06 for the next five years and then readjusted again at the end of ten years. If the town elects to terminate the program, AllEarth Services has the right to lease the property within the Conservation District for $600 per year for the remainder of the original 15-year agreement. AllEarth retains all rights to Renewable Energy Credits (RECs) and other tax credits but agrees not to sell or assign the RECs, thus giving the town the right to claim it is receiving renewable power from the solar trackers.
The Town of Charlotte should vigorously pursue renewable energy opportunities that are beneficial to its residents and to the environment without compromising its commitment to preserving the natural beauty of precious open space. There will be many opportunities in the future to take a leadership role in supporting renewable energy. Let’s wait and do it right.

Bill Bruett
Thompson’s Point leaseholder,
resident of Peapack-Gladstone, N.J.