Washington may install solar panels on city buildings - Southeast Iowa Union

Washington may install solar panels on city buildings | Southeast Iowa Union

WASHINGTON — A company has offered Washington a plan to install solar panels on city buildings, saying it would cut the city’s energy bill with “little or no upfront investment.”

Kent Kraus, a representative from Eagle Point Solar, pitched the plan to city council members at a meeting June 4. He said arrays on top of the library, city hall and maintenance building could save the city over $1 million after 25 years, depending on how it finances the installation.

The company has offered the city a “Power Purchase Agreement,” or PPA: an arrangement where the city agrees to buy the energy produced by the panels, which would be owned by private investors, at least at first. Officials could still purchase the equipment for the city later, at a discount based on its age, to cut energy costs further.

The deal would consistently deliver energy cheaper than that offered by Alliant, according to Kraus, but buildings could still use electricity from the local grid when weather prevents the solar panels from powering them alone. He said the city would save more than $573,000 over 25 years, even if it never purchases the solar panels for itself.

“The rate for the PPA is an agreed-upon rate between the city and the investor,” he said. “There is an increase in that rate, over the years, as there is if utility rates go up. We look at a utility rate increase of 3.8%, typically a PPA increase is 3%.”

City budgets and private investors would both benefit from the arrangement, according to Kraus, who said PPAs offered owners passive income with little maintenance and offered the city a lower price than it could expect from typical energy bills.

Last year, the city spent $698,107 on energy bills, according to City Finance Director Kelsey Brown. By Kraus’ estimate, a power purchase agreement would put a roughly $9,900 dent in that sum, in the first year alone.

“The reason investors like these investments is, they’re investing in something that they don’t have to babysit, they don’t have tenants, they don’t have to chase people down,” he said. “And again, there is no cost for the city to go into this … it allows the city to get into solar without spending any of their own dollars.”

Kraus said the city could further offset its costs by earning credits from Alliant when municipal buildings overproduce power, sending energy back into the grid for other users.

An Alliant Energy spokesperson did not comment on Power Purchase Agreements specifically when asked, but said in an email the company was “incredibly supportive” of renewable energy projects in general.

“We are proud to be working toward a clean energy future, in partnership with local businesses, customers and communities,” the email said.

City Clerk Amanda Waugh said the presentation from Kraus was “informational,” and that council members didn’t have the item on their agenda for a regular meeting on June 18.

Comments: Kalen.McCain@southeastiowaunion.com

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