Arena solar power project out for quote

By Mickey Dumont Local Journalism Initiative Reporter

Town council is interested in reducing its power cost at the Claresholm Arena and is inviting quotes through a competitive bid process for the installation of a solar plant.
The Town of Claresholm council voted unanimously at its Feb. 10 meeting to move ahead with the project that could save ratepayers a possible $3.5 million over the project’s 30-year life span.
Council’s interest was stimulated after D-Comm Energy of Lethbridge presented a proposal to install solar on the town’s arena at the Jan. 27 council meeting.
Abe Tinney, the town’s chief administrative officer introduced the proposed project which would include the installation of solar photovoltaic panels on the arena’s roof.
The project’s proposed cost is estimated by D-Comm Energy to be $513,498.
Tinney added the town would not move forward without a possible $194,000 grant incentive lowering the projects estimated cost to $319,498.
He said the project’s life expectancy is 25 to 30 years, with a projected savings to utility costs of $3,491,359 over 30 years. Inverters have a life expectancy of 15 years and will need to changed.
“Project funding options include debenture, revenues and electricity generated from solar (that) will offset the borrowing payments,” Tinney said.
The town’s surplus debt limit is $9,013,552 and surplus debt servicing is $1,867,127. If the town borrowed for this project, with a 10-year fixed rate debenture at 4.58 per cent, the surplus debt limit would decrease to $8,694,054 and debt servicing surplus would decrease to $1,788,838.
“There is potential to fund some of the project from reserves, but administration is recommending that a funding decision happen at a future date, once we have a better idea of overall costs,” Tinney said.
Appearing as delegation at the Jan. 27 council meeting, commercial solar specialist Scott Alexander offered a scenario where solar power could offset utility costs at the Claresholm Arena by both generating solar electricity by installing solar panels on the roof and also selling excess during the off season.
It could amount to annual savings of more than $70,000, he told council.
“I’m usually pretty conservative about these kind of assumptions that they put out as far as payback periods and pricing and so on. I mean the reality is something’s not going to last for 30 years,” Coun. Rod Kettles said. “We’re putting it on a 40-year-old roof – there’s concerns there – you know price of electricity is probably not going to always be that price. But, even if we half all the expectations and double the payback, I think worst case scenario we’re looking at is maybe break even with some pretty significant upsides for savings.”
The request for proposal process gives administration time to double check the math, check references, and explore what other municipalities have done and learned.
“I spoke to some folks in High River regarding their residential pools for the last two years,” Coun. Kieth Carlson added.
“They have actually generated more than they’ve used on their yearly pools, which in essence is paying for their infrastructure that they’ve put on, plus a couple thousand dollars a year in returned energy cost.
“I’ve always been a proponent of solar, cautious about the cost of install for the last 10 years, but at this time and doing some of the research, it does appear viable with the climate and the economic climate that we’ve got right now.
“So, I’d definitely like to see the town try to be a forward thinker on a project like this and hopefully see that we’ve got some room on a future fire hall. That may actually offset the cost of building in the future,” Carlson said.
He made the motion to direct administration to initiate a request for a proposal process for a solar project at the town’s ice arena. Council voted unanimously in support.