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Frequently Asked Questions about the ConVal Solar Project
What if the price of electricity goes down in the next six years and ConVal has to pay more than the going rate for it?
The PPA rate of the project is several cents lower than the current rate Conval pays for electricity. This is in large part because 60-80% of the power is generated ‘behind the meter,’ and avoids significant transmission and distribution charges. Other reasons the project is likely to be even more cost favorable in years to come:
Transmission and distribution charges are increasing as the grid is upgraded.
Countries around the world are putting a price on carbon, and there are several bills in the US Congress that would raise the prices of fossil fuels. In New Hampshire, we still produce a lot of our electricity with natural gas, a fossil fuel.
If the school buys out the solar array after six years (which it is not required to do), the electricity generated by the solar panels will be free for the school, as the owner of the project.
Don’t the solar panels degrade as they age? Won’t that mean we’ll get less electricity from them than ReVision has predicted?
Yes, solar panels do degrade as they age, but manufacturers are constantly improving their performance. According to the National Renewable Energy Laboratory, new panels now degrade at less than 0.4% per year, meaning that after 20 years they produce 92% as much electricity as they did when they were new. And this performance is guaranteed over the life of the panels. In addition, these losses are considered in the economics of the projected savings. When ReVision makes predictions about solar savings, it takes this small amount of degradation into account.
Is ConVal’s roof strong enough to support solar panels and snow? Could it collapse from their weight?
We have every reason to believe that the new roof, a former gravel ballast roof (usually 10-12 PSF weight) converted to adhered rubber EPDM, will easily support the lighter solar panels (4-7 PSF weight). But before the installation of any panels, a professional engineer will evaluate the strength of the roof. This engineering study also ensures the roof plus solar panels meet all code requirements for weight-bearing including snow. If the roof turns out to be unable to support the weight, the project will not proceed.
We’ve heard that the engineering study and other early expenses will total $10,000 or more. If the project cannot go forward because the study shows that the roof is not strong enough for the panels, who will pay for these expenses?
ReVision Energy has committed to completing the structural review at their own expense. If the structural analysis shows that the roof isn't strong enough to support the panels, the project will not move forward AND the district will not have to pay the $10,000. The Letter of Intent (LOI) clearly states that the structural review will be completed by ReVision prior to the March 10th vote and that if the vote fails, the LOI automatically terminates and no costs will be passed on to the District. The LOI also states that the Board may choose to cancel the project at any time prior to the March 10th vote without incurring any costs. Only in the event that the warrant is approved by voters on March 10th and the School Board then chooses to cancel the project unilaterally would they be on the hook for up to $10,000* (not $10,000 or greater) in actual expenses incurred by ReVision.
The school currently removes snow from the roof after heavy snow storms. Won't it be harder and more expensive to do so once solar panels are installed?
If the roof analysis shows that snow needs to be removed after heavy snow storms, the project will not get Professional Engineer (PE) approval to move forward. While the district currently pays to remove snow from the roof, which can cost thousands of dollars per storm, it is doing so without knowing the roof's load capacity and, therefore, whether snow removal is actually necessary. The only way the project will get PE approval is if the roof is strong enough that it doesn't need to have snow removed. Therefore, the project would also save the district tens of thousands of dollars by providing valuable information on the roof's strength and eliminating the expense of snow removal.
What happens if for any reason the project doesn't get completed after voters approve it?
If the project is found by the PE studies to be viable and voters approve it, but it is not built, then the school district still has gained a valuable engineering study of the weight bearing capacity of its new roof. The school has no current PE study, no professional opinion, about the weight bearing capacity of that roof. The Peterborough Energy Committee worked with the school for months to track down this important information. Going forward, the district will know when a snow load must be removed at a cost to the district, and when it can be safely left in place at a savings to the district and taxpayers.
Won’t there be possible unforeseen maintenance and operational costs the School District will have to pay?
Any costs associated with operating and maintaining the system automatically fall on the investor partner, not the District, as long as the Power Purchase Agreement (PPA) is in effect.
Will Revision have to start purchasing equipment before the March 10 vote? Will the district have to pay for such equipment if the warrant article doesn’t pass?
No, Revision Energy will not procure equipment until after the warrant article passes. If the warrant article does not pass, no equipment will be purchased and there will be no charges to the District.
What if the roof needs to be repaired after the solar panels are attached to it?
The ConVal roof is new, so no repairs are anticipated. Care is taken when installing panels not to damage the roof, and Revision has experience building on this membrane type of roof. And solar panels may even prolong the life of the roof by protecting it from sun and weather damage. If the roof does eventually need repair, some or all of the solar panels can be removed and then returned at a nominal cost.
How does the optional buyout of the project in year six work? Don’t we have better things to do with the money?
The project returns energy cost savings annually to the school of about $15,000 per year for the life of the project. A provision in the contract allows the school to buy the solar project in year six or any time after that to achieve additional savings that accrue to the project owner, estimated at greater than $60,000 per year. It is these additional savings related to ownership of the project that would be used to pay back a bond, not taxpayer’s money, and these funds are not available unless the project is purchased. Once the bond is paid off, the project generates about 300,000 kWh per year of free electricity for the rest of its operating life, estimated to be 25-40 years.
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