The county will purchase electricity produced by the solar systems through a 15-year Power Purchase Agreement with Tioga. SunDurance will provide turnkey design and installation services.
The program will employ $22.3m in low-interest bonds issued by the MCIA and guaranteed by the county to finance solar projects. The low cost of the bonds, coupled with federal tax incentives available to Tioga as a private developer, are expected to result in inexpensive solar electricity estimated to save the county over $2m in energy costs.
In June 2009, Morris County Improvement Authority received approval from the State Local Finance Board to issue up to $30m in bonds, guaranteed by the county, to finance a renewable energy pilot program. The initiative calls for renewable energy sources such as solar panels to be installed, on buildings or on the grounds of public schools and municipal facilities.
The Morris County Park Commission and the Boonton, Mountain Lakes, Parsippany-Troy Hills, West Morris Regional and Morris Hills Regional school districts are participating in the program.
Paul Detering, CEO of Tioga Energy, said: ”This innovative public-private partnership puts Morris County on the vanguard of solar power development in New Jersey, already one of the leading states in the use of solar energy nationwide.
“We hope to see many other New Jersey communities adopt this creative and cost effective means of deploying solar energy and further contribute to achievement of the state’s ambitious renewable energy goals. Tioga is proud to be chosen by Morris County as a partner in this ground-breaking effort.”
Al Bucknam, CEO of SunDurance Energy, said: ”As a New Jersey based company, we are very excited to be involved in a local project of such scale and extraordinary value to Morris County and the State of New Jersey. It brings jobs, electricity cost savings, and increased energy independence for local government to the region, and is a great example of how government and the private sector can achieve win-win results.”
Under the terms of the MCIA pilot program, Tioga Energy, as the project developer will own, operate and maintain the solar projects, selling the electricity produced by the systems to the County at fixed price.
Tioga qualifies for Federal tax incentives and can pass along the savings to the County and provide clean electricity at a lower rate than the cost of retail electricity from the local electric utility.
