Mount Vernon approves joining regional partnership to develop community solar fields

The Mount Vernon City Council voted March 18 to approve an intergovernmental agreement committing the city to participate in a regional effort to develop community solar fields through the Southern Illinois Aggregation Partnership.

City Manager Mary Ellen Bechtel introduced Jeff Haarmann, managing partner of Affordable Gas & Electric Company, LLC, who described the partnership’s plan to develop 12 to 15 solar sites over five years. Haarmann said a typical site would use about 25 to 30 acres and cost an estimated $10 million to $12 million.

"We’re hoping to get 70% of the costs associated with these projects from the federal government and additional credits when we look into the state incentives," Haarmann said. He described financing through bonds issued to the not-for-profit SIAP and emphasized the bonds would be non-recourse to the mayor, the city or participating communities.

Haarmann said the partnership intends to direct a share of financial benefit to low- to moderate-income households: "From anything that is profit of the organization, 50% of that has to go to low to moderate income and at a minimum, they have to receive 20% credit above whatever they put into it from a benefit standpoint." He added that, based on current modeling, aggregation customers on early projects could see savings on their electric bills in early 2026.

Council Member Mike Young asked whether households enrolled in low-income utility programs could participate; Haarmann confirmed they would be eligible for credits and could remain in their existing aggregation program. Council Member Joe Gliosci asked about impacts for Ameren customers and co-ops; Haarmann replied customers must be part of the aggregation programs operated by participating communities to receive benefits.

Bechtel noted the entity would retain some revenue to cover bond payments and operating costs; Haarmann said bond obligations would be paid first and remaining profits would be distributed to residents through the aggregation mechanism. The council approved the resolution authorizing the city to enter the intergovernmental agreement and to appoint the mayor to the initial board for the not-for-profit organizing the effort.

The agreement passed by voice vote with Council Members Gliosci, Moore, Young and Mayor Lewis recorded as voting in favor and Council Member Ray Botch absent.