The Half Moon Bay City Council is deciding between two potential options for an upcoming addition of solar panel systems to city facilities — one, entering into an agreement with a developer that would own the system and purchasing its power, or two, owning the solar panel system entirely and completing a larger city electrification project.
A decision on which energy project option to pursue should be made by February or March at the latest to receive optimal solar pricing incentives and avoid substantially compromising the project’s finances, Rafael Reyes, Peninsula Clean Energy director of Energy programs, said to the City Council at its Jan. 16 meeting.
The council will hear further information on the financing of both project options at its Feb. 6 meeting.
A power purchasing agreement would require upfront costs of around $70,000 to replace the City Hall roof and $1,000 for internet connectivity so a solar panel system could be installed by the developer of choice, Moz Bozorginia, Public Works director and city engineer, said.
After these costs, the city would receive lower and more predictable electricity costs — although the developer would retain the system’s tax credits and income generated. After a 20-25 year contract, the city could choose to purchase the system at market rate or the owner company would remove it.
By contrast, if the city were to own the system outright while completing a more comprehensive project, one that could include city facility electrification and electric vehicle charging, total cost could potentially be estimated at around $650,000, Veronika Vostinak, Public Works and Sustainability Programs Manager, said.
The city would have several financing options, Vostinak said, including utilizing $200,000 already budgeted for a replacement HVAC system and possible PCE building electrification grants. Half Moon Bay could also opt to put nothing down, which would not realize net positive finances, or opt for an even greater capital investment than leveraging budget funds, per the staff report.
Vostinak emphasized that more specific financial comparisons were not presented because “neither party felt comfortable sharing their exact numbers, that they’ve shared with us, publicly tonight,” and Bozorginia said narrowing down finances could progress when the council indicated a preference.
Some councilmembers, including Councilmember Robert Brownstone, voiced concern over the lack of financial specificity. Councilmember Debbie Ruddock also asked for “more in the way of numbers.”
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“I like the all in approach. I like the idea that we can achieve some self sufficiency rather than relying on the third party,” she said.
Half Moon Bay resident Joan Winters said she preferred the second option because of an increased capacity for electricity storage.
“We’ve gotten so dependent on electricity, that when you’re in a situation that — I’ve been in, without it, recently — and it’s getting cold, among other things, it’s really important to have a backup system,” she said.
Jason Boyd, energy program manager at Willdan Performance Engineering — who would facilitate the larger electrification and ownership build — advocated for the second option during the meeting.
“We’ve been working closely with staff for quite a while now to develop this plan, really addressing city’s goals for adding renewable energy but also accomplishing goals of electrification, as well as accomplishing some other energy-related deferred maintenance energy needs all at once in a way that is cost effective,” he said.
Staff said they will aim to deliver a more direct numbers comparison at the next council meeting.
I would caution the City Council to count on forthcoming incentives from the various federal programs. They may not available for some time, if ever. PCE clearly wants to keep your facilities in their portfolio but long term, an independent system relying on batteries is preferable. PG&E's cost will continue to rise exponentially because of electrification elsewhere. One should also consult with the experiences of European countries where massive electrification due to EVs, heat pumps and industrial conversion away from natural gas, is causing a severe shortage of transmission and local distribution capacity. PCE just delivers electricity and is not responsible for delivery. Any time Mr. Reyes is speaking keep that in mind. Fortunately, a number of council members are questioning and evaluating their options.
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I would caution the City Council to count on forthcoming incentives from the various federal programs. They may not available for some time, if ever. PCE clearly wants to keep your facilities in their portfolio but long term, an independent system relying on batteries is preferable. PG&E's cost will continue to rise exponentially because of electrification elsewhere. One should also consult with the experiences of European countries where massive electrification due to EVs, heat pumps and industrial conversion away from natural gas, is causing a severe shortage of transmission and local distribution capacity. PCE just delivers electricity and is not responsible for delivery. Any time Mr. Reyes is speaking keep that in mind. Fortunately, a number of council members are questioning and evaluating their options.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.