by David Flint
The Berlin Fire House has gone hi-tech. Last week an 80 panel solar array was installed on the building’s large south facing roof. “It was a no-brainer. We won’t walk away with the farm, but we are saving a considerable amount of money,” said Bruce Hake, President of the Berlin Fire Company.
[private]The Company has bought into an arrangement called a solar Power Purchase Agreement (PPA) with Solar City, a full service national company that designs, installs, finances and maintains solar photovoltaic systems. The agreement means that the Berlin Fire Company provides its roof space for 20 years, and, in exchange, they pay Solar City for the electricity they use at a starting rate of 8.4 cents per kilowatt hour. That is in comparison to the approximately 13 cents they have been paying recently for electricity. The savings in year one is estimated to be $1,232. There will be an annual 1.5% increase in the rate, but the savings over 20 years would still amount to close to $43,000, according to Hake.
Solar City designed and installed the equipment – the solar panels and two inverters that convert the direct current from the panels into alternating current that can be used in the Fire House. They own the equipment and will maintain it through the life of the contract. Solar City can charge a low rate because they take full advantage of all tax incentives and rebates and because they can sell any excess electricity back to the grid.
A Precaution
Hake said that the Fire Company did not have to come up with any money up front. They did, however, opt to install two disconnects on the roof so that in case of a fire in the building the system could be disconnected up there without anyone having to enter the building. This equipment cost about $900 altogether. Aside from that the Company begins to save money on its electric bill immediately without having to lay out any money.
There could have been additional outlays to prepare for the solar installation but, fortuitously, the Company had replaced the roof only two years ago and the electrical system in the Fire House only four years ago. So when Solar City arrived earlier this year to do their free structural and electrical survey, everything was found to be in perfect shape. “It was good timing,” Hake said.
Beside cost savings there are environmental benefits. Solar City estimates that over the 20 years of the contract, Berlin’s solar system will offset 706,838 lbs. of carbon dioxide, a leading cause of global climate change, 882 lbs. of nitrogen oxides, a leading cause of smog, 2,255 lbs. of sulfur dioxide, a leading cause of acid rain, and 114 lbs. of particulates, a leading cause of asthma.
At the end of the contract there are several options. The Fire Company could purchase the system at fair market value, the agreement could be renewed for another term or Solar City could remove the system and restore the roof to its previous condition. Hake believes there will probably be newer and different technology by that time.
Hake, who is also a Project Manager at Westall Architects in Williamstown, said that people in the Fire Company began seriously considering solar power three years ago as a way of cutting costs. Advice Hake received from knowledgeable people at that time, however, was that given the cost involved, if you couldn’t take full advantage of tax credits and rebates it would make no sense at all. The Fire Company as a non-profit entity would get no tax credits or rebates, and New York law did not then allow for Power Purchase Agreements. It was only last October that legislation was passed to permit it. Solar City arrived in New York soon after that and set up business in Albany. Hake said that Peter von Schilgen, who works with GE Renewable Energy and is a member of the Fire Company’s Board of Directors, did a lot of background research checking out Solar City’s financial stability and getting references. He came back with a positive recommendation, and a contract was developed and approved by the Fire Company’s attorney.
Hake said that everything has gone smoothly with Solar City. They took care of all the necessary paperwork, permitting and applications, and they paid all the required fees. The installers last week worked very quickly and cleaned up after themselves every day. Hake had hoped to have the installation completed by the second week in July, but NYSERDA, which had to pass on the details of the Agreement, had a backlog of applications. With the installation completed last week, the only thing waiting before they flip the switch is completion of an inspection by NYSERDA and by the local Building Inspector, Allan Yerton.
The panels on the roof have generated a lot of interest and inquiries already, Hake said. During the installation last week a lot of the neighborhood kids found it fascinating to watch. The workers told Hake, “We had a large group of supervisors all week, mostly under the age of 12.”[/private]