Ownership to Avoid Risks Associated with Predicted Long-Term Electric Rates
The City of England announced a partnership with Little Rock-based Delta Solar to leverage non-developable land to build solar arrays for commercial, industrial, and agricultural customers around the state. Phase 1 of the project will occupy 12 acres just off Arkansas Highway 165 which can accommodate over 2MW of solar systems. In return for using the land, Delta Solar will provide the City of England with a solar array that will supply enough electricity to power the Courthouse and Parks System.
“Solar provides long term benefits for the City,” said England Mayor Butch House. “When looking at how others are approaching solar it became obvious that we wanted to own our system and not rely on projected increases in electric rates.”
“The best solar panels are the ones you own,” said Bob East, chairman at Delta Solar. “Innovation is at the heart of what we do every day to create long term value for our customers. While Power Purchase Agreements can definitely be attractive, long term savings are based largely on the projected changes in the future electric rates. Unlike others, the City of England doesn’t need to worry about those changes because they own the system outright.”
Phase 1 of this partnership creates long-lasting value for the city, providing more than $174,000 in savings over the project’s 30-year expected life. Although the system will be built and maintained by Delta Solar, it will be fully owned by the City of England. This ensures that all energy savings will be received by the city directly. The City of England will also retain ownership of the environmental attributes, known as Renewable Energy Credits, associated with the generation of clean, renewable electricity from the new system.