Between 2014 and 2016, the City signed net-metering agreements with three solar farms in Massachusetts. For 20 years, the farms will transfer the net-metering credits (i.e. financial value associated with generated electricity) to the City's 20 electrical accounts. The electrical rates are discounted, saving City money, and also help support the development of the solar arrays by committing to purchase the net metering credits before the facilities' construction.
1st Municipal Net-Metering Agreement
On June 24, 2014 (as amended December 10, 2014), the City executed a Solar Net Metering Agreement with SH Solarne2 LLC. The agreement is to purchase approximately 5,000,000 kWatt-hours per year over 20 years from a solar array in Brimfield and to allocate the associated net metering credits across 6 municipal facilities.
SH Solarne2 LLC is transferring its net metering credits to selected Worcester’s electrical accounts, and Worcester then pays SH Solarne2 LLC for the electricity at a 28% discounted price off of G-1 electrical rate, resulting in estimated*:
- Combined Average Annual Savings - $220,000+
- Combined Total Savings (20 years) - $4,400,000+
Consequent Municipal Net-Metering Agreements
In the spring and summer of 2016, the City executed two Solar Net Metering Agreements with Nexamp, Inc. to purchase net-metering credits from solar farms in Palmer and Rutland, MA. These credits are applied to the DCU Center and 11 Department of Public Works and Parks facilities. The discounted price from the 7,500,000 kWatt-hours of electricity is 30.5% off of the G-1 rate.
The cumulative savings for the City from these projects are estimated* at:
- Combined Average Annual Savings - $490,000+
- Combined Total Savings (20 years) - $9,800,000+
Agreement With: |
Solar Farm’s Capacity: |
% Electricity Net-Metered to the City: |
Peterson Road Solar, LLC (Nexamp, Inc. affiliate) - signed April 20, 2016 |
3.58 MWs |
76 % (approximately 3 MWh of the estimated 4 MWh annual production). |
Golden Hills Solar, LLC (Nexamp, Inc. affiliate) - signed June 29, 2016 |
6 MWs |
59 % (approximately 4.5 MWh of the estimated 7.7 MWh annual production) |