MILLHEIM — Looking to invest in solar power for all municipal buildings, Millheim Borough Council has scheduled a public hearing on Oct. 30 at 7 p.m. to hear from residents before voting on the potential project.
The potential project follows in the footsteps of other Penns Valley solar projects that are already up and running at different businesses around the area, such as Burkholder’s Country Market and Penn’s Valley Vet Clinic.
The potential project would call for the installation of a solar field at the sewer treatment plant with room to expand if needed, said borough council member Robert Zeigler.
During a July presentation to borough council, Sel Edor, marketing director for BAI Group’s renewables division, said the project could save the township $671,834 over a 25-year period. After the presentation, BAI Group conducted a feasibility study for the project, which will be up for discussion at the Oct. 30 public meeting.
“It will provide power to anything of the borough’s that has a bill attached to it for electric use,” said Zeigler. That includes the municipal buildings, the street lights and more.
The borough has discussed the project since the summer. According to Edor, potential options include a power service agreement and a power purchase agreement, both providing different advantages.
According to Edor, a solar power service agreement is a third-party ownership approach to solar purchasing.
“It is essentially a lease agreement between Millheim and an investor. The investor builds the system, operates and maintained it. Millheim enters into a 25-year PSA at a predetermined lease rate per year. Millheim can purchase the system in the sixth year if it chooses,” said Edor. “With the PSA, Millheim retains all nontax incentives, such as Solar Renewable Energy Credits (SRECs). With the PSA, we are considering the borough could save approximately $900,000 over the life of the system.
“A power purchase agreement is also a third-partner ownership funding option. An investor builds, owns and operates the solar array over a 25-year term,” he continued. “Millheim agrees to purchase the power from the system at a predetermined energy rate. With the PPA offer available, the borough could save $125,000 over the life of the agreement.
“The major different between the PSA and the PPA is that in the PSA, Millheim would need to take ownership of the system within the sixth to 10th anniversary of the array to secure the projected savings. This ownership would have a cost of approximately $400,000 depending on the time of purchase. The PPA does not require an early buyout to secure the savings projected.”
The potential construction start dates for the project, if either one is approved, would be spring or summer of 2020 for the PSA and August or September for the PPA, said Zeigler.
