Summary of Plan Town of Boxford is proposing to enter into an agreement with a developer to build a 500Kwh Solar Array on the Landfill site behind town hall. The proposal will be to follow a path that many communities in MA have already taken and to enter into a Lease arrangement where we can minimize the cost to the town for development of the array and maximize the monetary benefit of an otherwise unusable tract of land Slide on Summary of Potential Benefits: Major benefit is that we turn a piece of unusable land into an asset for the town. By pursuing the lease model that is the predominant model that towns in MA are using, we will also gain the following Monetary savings for the town. 1 500KwH annual production at 9c/KwH vs 14c/KwH (5c/KwH savings) => $25,000/year ($500,000 over 20 years)** 2. Lease on land estimated at $25,000/MW => $12,500 /year ($250,000 over 20 years) 3. Taxes estimated at $15,000/MW => $7500/year ($150,000 over 20 years) 4. Misc Fees - Could be up to $45K paid for by developer for site planning, etc including the interconnection Fee 5. Maintenance of the Solar Installation - town would not be on the hook for Maintenance as the developer would own the site and be responsible for its upkeep. **Note the town uses approximately 1MwH per year of electricity Slide on Other similar projects in MA 1
Solar Production in MA towns Dartmouth - Leading the way! 9.28MW of production from 113 systems including one on the landfill Canton - 15 acre site on a closed Landfill - 5.78 MW - Live Aug 2012 - Salisbury - True North Solar Farm - 5.7 MW Wrentham (5.4Mw) Holyoke (5.3Mw) Westford (5Mw) Barnstable (4.9Mw) Pittsfield (4.9Mw) Fall River (4.4Mw) Other towns include: Ludlow, Easton, Duxbury, Holbrook, Brockton (similar size installation on landfill), Easthampton (good case study we can use) What has happened so far 1. Merrimack Valley Planning commission completed a Feasibility study in January 2011 confirming the site could support a 500KwH installation - copy of the report is available 2. Sustainability Committee is formed in order to drive the project forward. Committee expertise (should we do a short bio on everyone?) 2. BOH is close to completing the Landfill closure with the Mass DEP. This sets us up to apply for a MassDEP Post-closure Use Permit. In preliminary discussions with DEP, they are confident based on the information they have that we will be able to attain this permit as they are very positive on the concept of using closed landfills for generating Solar Power. 3. SC has met with a number of experts to discuss feasibility, Process, timing, Permitting, etc. Most recently met with National Grid to determine the level of Boxford's Infrastructure, as it relates to Interconnection and Net Metering. 4. SC has identified a consultant via our membership in the MVPC, and is ready to proceed to RFP to identify a partner and to zero in on the exact costs and benefits the town can expect. Other Considerations - Why this model is available and attractive to the developers and why Boxford needs to act now to get this project going. Net Metering Credits - Managed by the developer in conjunction with National Grid Solar renewable Energy credits (SREC's) - MA incentive Program. The advent of SRECs creates an additional potential revenue stream for qualified solar projects. SRECs have a minimum value of $285/MWh and a price ceiling of up to $550/MWh, depending on market conditions. The cue for these credits is already full as towns are lining up to get their projects going. Federal Investment Tax Credits - Qualified solar PV projects are eligible for a federal investment tax credit of up to 30% of eligible system costs, if installed by December 31, 2016. The tax credit can be taken and applied against the federal tax obligation of a forprofit entity Accelerated Depreciation/bonus Depreciation - Under the federal Modified Accelerated Cost Recovery System (MACRS), businesses are able to recover investments in eligible property through depreciation reductions. Solar PV is specifically eligible for a 6-year accelerated depreciation schedule if the system is installed by 2016. 1
Summary of Plan What: Town of Boxford is proposing to enter into an agreement with a developer to build a 500kWh Solar Array on the Landfill site behind town hall. How: The proposal will be to follow a path that many communities in MA have already taken and to enter into a Lease arrangement where we can minimize both capital and on-going maintenance costs to the town for development of the array and maximize the monetary benefit of an otherwise unusable tract of land. 2
Slide on Summary of Potential Benefits: Major benefit is that we turn a piece of unusable land into an asset for the town. By pursuing the lease model that is the predominant model that towns in MA are using, we will also gain the following monetary savings for the town. 1 500KwH annual production at 9c/KwH vs 14c/KwH (5c/KwH savings) => $25,000/year ($500,000 over 20 years)** 2. Lease on land estimated at $25,000/MW => $12,500 /year ($250,000 over 20 years) 3. Taxes estimated at $15,000/MW => $7500/year ($150,000 over 20 years) **Note the town uses approximately 1MwH per year of electricity 3
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Capital investment, fees and maintenance: By pursuing the lease model that is the predominant model that towns in MA are using, we will also avoid up front capital investment and recurring maintenance expenses. 4. Capital expenditures & Misc upfront fees - Could be up to $45K paid for by developer for site planning, etc including the interconnection Fee, approx $2500. 5. Maintenance of the Solar Installation - town would not be on the hook for Maintenance as the developer would own the site and be responsible for its upkeep. 5
Other Considerations - Why this model is available and attractive to the developers and why Boxford needs to act now to get this project going. 1. Solar renewable Energy credits (SREC's) - MA incentive Program. The advent of SRECs creates an additional potential revenue stream for qualified solar projects. SRECs have a minimum value of $285/MWh and a price ceiling of up to $550/MWh, depending on market conditions. The cue for these credits is already full as towns are lining up to get their projects going. 2. Net Metering Credits - Managed by the developer in conjunction with National Grid 3. Federal Investment Tax Credits - Qualified solar PV projects are eligible for a federal investment tax credit of up to 30% of eligible system costs, if installed by December 31, 2016. The tax credit can be taken and applied against the federal tax obligation of a for-profit entity 4. Accelerated Depreciation/bonus Depreciation - Under the federal Modified Accelerated Cost Recovery System (MACRS), businesses are able to recover investments in eligible property through depreciation reductions. Solar PV is specifically eligible for a 6-year accelerated depreciation schedule if the system is installed by 2016. 6
Other similar projects in MA Solar Production in MA towns Dartmouth - Leading the way! 9.28MW of production from 113 systems including one on the landfill Canton - 15 acre site on a closed Landfill - 5.78 MW - Live Aug 2012 - Salisbury - True North Solar Farm - 5.7 MW Wrentham (5.4Mw) Holyoke (5.3Mw) Westford (5Mw) Barnstable (4.9Mw) Pittsfield (4.9Mw) Fall River (4.4Mw) Other towns include: Ludlow, Easton, Duxbury, Holbrook, Brockton (similar size installation on landfill), Easthampton (good case study we can use) 7
What has happened so far 1. Merrimack Valley Planning commission completed a Feasibility study in January 2011 confirming the site could support a 500kWh installation - copy of the report is available 2. Sustainability Committee is formed in order to drive the project forward. Committee expertise (should we do a short bio on everyone?) 3. BOH is close to completing the Landfill closure with the Mass DEP. This sets us up to apply for a MassDEP Post-closure Use Permit. In preliminary discussions with DEP, they are confident based on the information they have that we will be able to attain this permit as they are very positive on the concept of using closed landfills for generating Solar Power. 4. SC has met with a number of experts to discuss feasibility, Process, timing, Permitting, etc. Most recently met with National Grid to determine the level of Boxford's Infrastructure, as it relates to Interconnection and Net Metering. 5. SC has identified a consultant via our membership in the MVPC, and is ready to proceed to RFP to identify a partner and to zero in on the exact costs and benefits the town can expect. 8
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