The city is moving forward with harnessing solar power at a handful of city-owned facilities.
The Sunnyvale City Council voted July 15 to explore power purchase agreements (PPA) and direct purchase for the installation of solar panels at the SMaRT Station, Ortega Park, Baylands Park and the Sunnyvale Corporation Yard.
The city could save $2.4 million to $3.5 million on its electricity bills over the first 25 years of the expected operating life of the proposed solar power systems. But to get to the savings, the city would need to spend $1.3 million to $1.5 million for installation.
The council vote was split 4-3, with Vice Mayor Jim Davis voicing concern that the city’s monthly electricity costs are more than $200,000.
“I’m trying to figure out why we would spend over $1 million in panels to get $140,000 [a year] in savings when our overall utility costs are staggeringly higher,” Davis said during the meeting. “I think it would be in the best interest of the city to forget this entire proposal and see how we could better impact the cost of city government.”
Other council members were hesitant about pursuing Ortega Park solar proposal after neighbors expressed disproval on July 15 and at prior meetings about the possible removal of 20 trees to make room for the solar panels, as well as safety concerns of putting up carport installations.
The council decided to include in the request for proposals that the Ortega site could be culled for further review, and ultimately decided to go forward with the procurement process.
The idea began as a study issue proposed by the sustainability commission last year. The report estimates an average 40 percent savings in annual electricity costs at each site.
Staff reported that PG&E’s Net Energy Metering program is the best fit for the city, as it allows for solar generation exported to the grid to be credited at the full bundled price the city would pay for energy use at the time the power is generated.
According to staff, the direct purchase option has the potential to achieve the greatest long-term returns, but requires investment up front and ongoing operational costs, whereas, there would be no up-front capital investment required through a PPA.
For direct purchase, the city would allocate funding for the initial capital costs to purchase and install the system and would be responsible for operations and maintenance.
For a PPA, the city would enter into a long-term contract with a third-party photovoltaic system provider and purchase all energy used on the site at a set rate, and the third-party provider would own the photovoltaic system and be responsible for all ownership costs, including construction, financing, operations and maintenance, insurance and system production.
