Millheim moves forward with solar energy project for borough buildings
Millheim will invest in solar energy for all borough buildings, but council members favored a less risky power agreement after hearing concerns from residents.
Joining Burkholder’s Country Market and Penns Valley Veterinary Clinic in the renewable energy market, Millheim Borough Council voted unanimously Tuesday to approve a $100,000 prepayment toward a 28 year power purchase agreement. Under the PPA, the solar array will be built, operated and maintained by an investor while the borough enters into a lease agreement.
During an October public hearing, Sel Edor of BAI Group presented two options for council to consider for funding the project — a PPA and power service agreement. Under a PSA, an investor would build, own, install and manage the solar array, but the borough would have more control over the system and solar renewable energy credits that could have been sold to outside entities — generating a profit for Millheim.
But some residents were worried the PSA would result in the borough not seeing a profit for years after the system’s installation.
Council member Robert Zeigler thought the PSA would allow the borough to become debt-free in 15 years, but said the prepayment will save Millheim $23,000, totaling $650,000 in savings over the course of the PPA.
“What if we don’t do anything? What if we don’t take any action? That’s the real question,” Zeigler said during the October hearing. “The biggest risk in my life has been never taking the risk, period. It’s a question of how do we do this.”
By prepaying the developer and assuming they receive a grant from the United States Department of Agriculture that will cover 25% of building costs, Zeigler said the borough will save 4.5 cents per kilowatt hour, about 60% of their electrical costs.
“We went with the PPA instead of the PSA because of taxpayer concerns about using funds to buy the system and regarding liability,” Zeigler said. “With the PPA, the developer is responsible for the system.”
The borough spends about $32,000 a year on electric bills, said Zeigler. Cost of the solar field would vary depending on if the developer secures a grant. The system is expected to be built next fall adjacent to the borough’s sewer treatment plant — the building with the most available space and highest energy demand.
This story was originally published December 12, 2019 at 10:51 AM.
