Licensing of Solar Credit Capacity

Post date: Jun 29, 2017 8:11:14 PM

At end of June, Beth Greenblatt, of Beacon Integrated Solutions (our solar consultant), called to advise of an opportunity to serve as a public Host to allow solar developers creating facilities for general governmental market to be able to access higher value solar tax credit.

The Town’s obligations as Host involves releasing just over 500 kW of our 10,000 kW net metering Host capacity. Currently, the only Host capacity the Town has is for the landfill project. That is 1500 kW. So currently the Town has 8500 kW of available capacity. Any obligations to National Grid is assumed by SunRaise (the developer) and they pay all fees to secure the cap allocation for net metering.

SunRaise has two solar projects in Chelmsford that they are looking for a public Host. They are interested in executing a 3 year deal that pays the Town $20,000 in years 1 and 2 and $10,000 in year 3. If they choose to renew, it would be at the $10,000 rate.

SunRaise was very anxious to get the application into the System of Assurance ASAP to ensure that they are high on the waiting list for net metering capacity. As with our project last year, there is uncertainty about the future value and quantity of credits. There is also a possibility that capacity will exist within the current allocation of net metering credits as some projects fall away. What all of this means is that we have an agreement that has the possibility of providing revenue for at least three years in the future. However, it isn't necessarily clear that this project will happen and then, when it does happen, when it goes "live". The company, which has been recommended by Beth, is ready to proceed subject to all of the market conditions. Similarly, while they have to be completed and "plug ready" by next March (requirement similar to landfill project here). That doesn't mean that it will actually be connected and generating power (which translates into revenue). So there isn't a specific time to expect these payments yet and a possibility exists that it won't happen. On the other hand, there is little downside.

Town Counsel reviewed the agreement, noting there are a few other towns that have similar agreements. I executed the agreement at the end of June and Beth and I have coordinated with SunRaise to get all of the basic enrollment data uploaded onto the state system. This whole program is largely the result of Beth being comfortable that Town of Williamstown and my ability to turn it around quickly.

Beth and I continue to discuss opportunities that may be beneficial to the Town either through this approach and others.