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County considers $3M in solar panels

County considers $3M in solar panels

By Michelle Durand, Daily Journal Staff

A $3 million solar panel project atop the county government centerin Redwood City will provide clean, renewable energy and recoup itsinitial cost in as little as four years, according to a reportcoming before the Environmental Quality Committee next week. Thecounty would spent $500,000 toward a 330-kilowatt solar project,offsetting the remaining cost with a $1.5 million federal grant anda $1 million state loan. If energy prices continue increasing by 7percent or greater annually, the county could break even on theinitial cost in as little as four years. Approving the project is“the smart thing to do” because it promotes cleanenergy and lets the county lead the way in environmentalprotection, according to Supervisor Mark Church who will presentthe report to the Environmental Quality Committee at its Aug. 12meeting. The county is allocated $1.5 million for a solar projectthrough the Energy and Water Development Appropriations Bill of2009. The legislation remains unsigned so although the county isincluding it in penciling out the solar project’s cost, thereis yet no guarantee the funds will come through. Without such afederal grant, the county would need to pony up $2 million andpayback would take 18 years. Even so, according to the staffreport, the county’s use of solar power would reduce theamount of electricity it would have to buy at peak rates.Currently, the cost of solar electricity isn’t competitivewith utility power because installing panels is so expensive. Ifenergy costs rise at least 7 percent, as expected, solar powerbecomes significantly more attractive. The county pays an averageof 99 cents per kilowatt-hour plus ad addition nickel for peakdemand periods. Solar power would be created during peak periods,thereby offsetting the county’s higher costs. The report alsolooked at a larger 1-megawatt solar project for the county parkinggarage but such an undertaking carries a $9 million price tag,requiring a a $4.5 million or $6 million county contribution andpayback timeline of 15 to 17 years. The facility would be splitinto two 500-kilowatt solar projects to cover all the parkingspaces at the county center and the San Mateo Medical Center. As analternative to buying and installing its own solar project, thecounty could enter into a power purchase agreement with a firmwhich would do both in return for federal tax credits. Suchsymbiotic systems are used by the Bay Area Rapid Transit Districtand the Fresno/Yosemite Airport. The federal tax credit programexpires at the end of 2008, however, so the county must jumpquickly if it wishes to go this route. The solar panel proposal isthe latest green effort by the county aimed at saving money and theenvironment. In October, the county committed to the Cool CountiesDeclaration which seeks to reduce the carbon footprint 80 percentbelow current levels by 2050. In late May, the Board of Supervisorsasked for more information about a potential program encouragingresidents to install solar panels on their homes. A cost analysisand other details will return to the Board of Supervisors at alater meeting. The Environmental Quality Committee meets 1 p.m.Aug. 12 in the Board of Supervisors conference room, 400 CountyGovernment Center, Redwood City. Michelle Durand can be reached bye-mail: michelle@smdailyjournal.com or by phone: (650) 344-5200ext.