AGENDA DATE: 10/2/2024
TITLE:
Title
Solar PPA Lease 5th Street County Office Building
BODY
SUBJECT/PROPOSAL/REQUEST: Public hearing to consider approval of a proposed Solar Power Purchase Agreement (PPA) Lease of areas on the 5th St. County Office Building Roof
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Wall, Herrick, Stewart, Dumars, Strother, Powers
PRESENTER (S): Bill Strother, Jamie Powers
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: A solar energy Power Purchase Agreement (PPA) allows a solar development company to lease either a rooftop or land for the installation of a solar energy generation system. Under such an agreement, the system is designed, installed, financed, owned, operated, and maintained by the solar development company for the life of the agreement. Throughout the life of the system, the property owner pays the solar development company for the energy, just as an owner would pay for energy from electric utilities. In addition to a lack of up-front costs, a primary benefit of a PPA is the predictability of energy costs from the system. The owner can design the rate of increase over the PPA term, and that price (and its increases) are fixed by the agreement.?At the end of the agreement's term, many PPA's specify that the owner may either request that the developer remove the system or purchase the system at an amortized rate.
STRATEGIC PLAN: Infrastructure & Placemaking - Invest in infrastructure and amenities that create connection, opportunity, and well-being
DISCUSSION: In the fall of 2023, staff began pursuing options to install a solar photovoltaic system on the roof of the 5th Street County Office Building (COB-5). Staff consulted with six solar developers to learn about project delivery alternatives. County staff also consulted staff of the Albemarle County Public Schools, which has installed solar energy systems on several school roofs via PPA agreements. Based on preliminar...
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