From the Mayor

This went out to the press (but no bloggers) today as well as some local officials.

I shall post without comment because I'm not really sure what it means yet. But I'll give it some thought when I have a few.

I do appreciate the mayor offering an explanation.


FOR IMMEDIATE RELEASE

Mayor John F. Moak announced today his reasons for expediting his decision on solar panel project for the Nock Middle School and the DPS building. The primary purpose for moving ahead this year is a priority to obtain MTC (Massachusetts Technology Collaborative) rebates. This is a competitive process where first come, first serve applications are the method for selection. We are in the queue for this year. Analysis of the reasons for the decision to consider the project this year are listed below. The Mayor would also like to clarify that the School Committee’s approval of this application is in regards to the installation of the panels on the roof of the Nock Middle School including concerns for safety, security and assurance of construction procedures. The financial decision on this matter directly falls upon the Mayor.

Priorities for Solar Panel Alternative Energy Project Decisions

• The City is only giving up $1.2 million of its rebate.
• The City is keeping $400 thousand to use for the future purchase of the system.
• If we loose our position in the MTC queue this year then we will have to start all over again next year.
• The Green Communities Act has capped the amount of rebates per year at $10 million.
• With a $10 million dollar cap only 7 similar projects will be rebated or 3.7 MW.
• Currently there are 3 that we know of already in the queue for next year totaling 1.3 MW, and MTC is a first come first serve.
• To date every good State incentive (CA, AZ, NJ, and CT) have decreased the amount of rebates per project.
o CA is now at $1.90/watt and on a lottery system for rebates.
o AZ is now at $2.45/watt capped at $500,000.
o NJ has no more rebate money and the remaining large systems are capped at $245,000 apiece.
o CT has capped the size of system for municipality to 200 kW.
o MA our experts predict to decrease it rebate to municipality after next year probably to a maximum of $1.2 million, this will drive PPA numbers higher.
• By starting over again next year we will have to follow the DOER guidelines for municipalities meaning a closed sealed bid, not that that is bad but it will cost money and will take 4-6 months. We could miss next year.
• It will take a solid 2.5 months from permitting to commissioning for installation and the risk is not with the PPA company, so much as it is with the electrical contracting company.
• The economics work for this model utilizing projected electric costs from Constellation New Energy, National Grid and private citizens from Newburyport who have submitted data on projected future electrical costs.