Explanation
Background: This legislation authorizes the Finance and Management Director to enter into a solar power purchase agreement (SPPA) with SolarVision LLC for the Fleet Maintenance Facility, 4211 Groves Road. An SPPA is an agreement whereby SolarVision LLC will own, operate and maintain a photovoltaic (PV) system on the roof of 4211 Groves Road. The City, in return, will agree to provide SolarVision LLC a lease on the roof and to purchase the electricity produced by the system. This agreement will allow the City to have the benefit of clean energy without the upfront costs of purchasing and installing the system, or the long-term costs of maintaining the system. SolarVision LLC, as a private entity, is also able to take advantage of substantial tax breaks currently being offered in 2010 by the United States government and the State of Ohio, and Renewable Energy Credits that can be sold on the market.
In its statement of qualifications, Solar Vision made a preliminary proposal of a 440 kW system. (The final size of the system will be determined upon further investigation and negotiation with the City). This would be the largest non-utility owned roof-top solar array in six states. It is estimated that it will provide up to one-third of the Fleet Maintenance facility's electricity. Based on the statement of qualifications, the City will negotiate for a ten-year term and for a fixed price per kwH. Based upon current building electricity usage, it is estimated that the City will be purchasing between $30,000 to $60,000 of electricity per year from SolarVision LLC. In no case will the City negotiate a price that increases total electricity costs. The City will ensure that the contract does not pay more to SolarVision LLC for the power produced than it would have paid if the same power had been purchased from American Electric Power.
This power purchase agreement will demonstrate the City's commitment to reducing its own carbon footprint as wel...
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