Free Resources | Energy | Currents Newsletter | Jan/Feb 2007

Go-Solar Program

In response to increasing member inquiries, California Communities now offers the Go-Solar Program. The program provides local agencies with access to solar energy facilities at a price that is competitive with current utility rates and will save significantly over time. Below is a chart showing the most prevalent options for energy procurement and their respective costs.

Under the Go-Solar Program, the solar facilities are constructed, owned and maintained by a private sector entity. This design relieves the local agency of ownership risk. The facilities warranty is assigned to the Local Agency and the Local Agency has a first priority lien on the facility to ensure contractual performance. As a private entity, the project company is able to benefit from federal tax credits, state financial incentives and accelerated depreciation and can then pass some of those benefits on to the Local Agency via power cost savings. At the end of the lease term, the facilities are available for purchase to the Local Agency at current fair market value.

California Communities organized a competitive Request for Services process to solicit responses from solar facilities installers to provide the construction services under the program. PowerLight Corporation (www.powerlight.com) was selected through that process to provide the solar facilities installation for the Go-Solar Program. Created in 1995, PowerLight has grown to become a leading provider of large-scale solar power systems in the world.

Program Benefits to Local Agencies

• Payments Fixed for 20 Years While "Brown Power" Historically Increases by More Than 6% Per Year.
• Program Design Enables Local Agencies to Benefit from Federal Tax Credits, State Financial Incentives and Accelerated Depreciation.
• Solar Production Tracked and Term of Program Increased or Decreased to Match the Targeted Amount.
• Facilities are Owned and Maintained by the Project Company.

Project Requirements

• Approximate annual electricity consumption of 600,000 kWh or greater.
• 50,000 square feet of rooftop or ground space for solar panels

Go-Solar Application Process

• Contact a California Communities Program Manager to apply for the program.
• California Communities Program Manager and finance team members will determine if the Local Agency meets all requirements of the Go-Solar Program.
• Governing body of the Local Agency adopts an authorizing resolution approving the Notes and Trust Agreement.
• Lender approval is received.
• Project design phase begins, followed by the construction, installation and testing of the solar energy system.
• Local Agency enters into a lease/leaseback with Californian Communities of an essential governmental property to fund power costs.
• Project is funded by Lender and Local Agencies receive their sale proceeds at date of closing to prepay for power delivered over the life of the contract.

Contact Program Managers Terrence Murphy (tmurphy@cacommunities.org) at (925) 933-9229 ext. 223 or James Hamill (jhamill@cacommunities.org) at (925) 933-9229 ext. 216, if you have any questions.

Application

Please fax the completed form to (925) 933-8457, attention to Terrence Murphy.

• Go-Solar Program Application Form
  (cscda.cacommunities.org/apps/solar/Go Solar Application Form.pdf)

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