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City Council Approves Major Solar Project to Slash Costs

June 26, 2024 | Morgan Hill, Santa Clara County, California


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City Council Approves Major Solar Project to Slash Costs
In a recent city council meeting, officials discussed the awarding of a significant energy services contract to Sizerco Energy Solutions for the installation of solar systems at seven municipal sites. Public Services Director Chris Escobany presented the proposal, highlighting the city's commitment to environmental sustainability and cost efficiency.

The initiative is driven by several factors, including the federal Inflation Reduction Act, which offers a 30% tax credit for solar installations. This translates to an estimated rebate of $2.3 million for the city, which plans to invest approximately $7.6 million in the project. The anticipated savings over 30 years are projected to reach $18.6 million, with a return on investment expected within eight years.

Escobany noted that the project aligns with rising electricity costs from PG&E, prompting the city to seek alternative energy solutions. The council is also exploring additional grant opportunities, including a potential $1 million grant from Cal OES for solar installations at the police station and community center, which would include battery backup systems.

However, the project will necessitate the removal of several trees, with plans to relocate them where possible. The council emphasized the importance of maintaining transparency and compliance with prevailing wage laws for all contractors involved in the project.

The timeline for the project is contingent upon the council's approval, with construction expected to commence shortly after the notice to proceed is issued. The council members expressed their support for the initiative, recognizing its long-term benefits for the community and the environment.

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