By becoming an anchor account for a forthcoming community solar project, River Forest not only strengthens the village’s commitment to alternate energy but also saves taxpayer dollars, village officials said.
At the May 13 Village Board meeting, officials voted unanimously to enter into a 20-year contract with Nexamp Solar LLC of Chicago to become an anchor account for a solar farm planned for Monee in Will County, Ill. Nexamp officials describe their firm on its website as “the nation’s largest community solar company.”
In a memo to officials, Seth Jansen, management analyst, explained that switching the village’s four paid electricity accounts to Nexamp will result in projected savings of $180,000 over the course of the contract. The four paid electricity accounts are the water pumping station, street lighting, alley lighting and Madison Street lighting. Because other village facilities’ electricity accounts are paid through the franchise fee levied upon residents, they are not eligible for the community solar program.
“Like the existing residential community solar program, the village, as a customer, will receive monthly net metering credits on the supply portion of the electric bills for their portion of the solar power generated each calendar month,” Jansen said in the memo. “This credit is the full amount of the kilowatt hours of electricity generated by the account’s associated portion of the solar farm and the rate per kilowatt hour is established and regulated by the Illinois Commerce Commission.
“The community solar provider then bills the village for 90% of the net metering credits as the community solar subscription fee. This results in a 10% savings for the supply portion of the village’s electricity bills. This will result in projected savings of $180,536 over the course of the 20-year contract with Nexamp. Further, this contract will diversify the village’s portfolio of green energy and promote the use of community solar.”
Trustee Katie Brennan questioned the process and expressed concern about the 90% figure.
However, Nathan Giebel, vice president, energy services with Satori Energy, the village’s energy consultant, who attended the meeting via Zoom, said the 10% savings is “guaranteed.”
In response to a question from village President Cathy Adduci about the village’s green energy aggregation program, Jansen explained that the electric aggregation program, through MC Squared Energy Services LLC of Chicago, is a separate program.
In the memo, he noted that residents can also subscribe to a community solar program, such as the program offered through MC Squared, but added that to date, only 56 River Forest households have completed enrollment in the program, which also provides the same 10% savings on the supply portion of their bill.
Jansen explained that the process began in January after Satori officials indicated to village officials that there was space available for an anchor account at a forthcoming community solar project. Officials expressed interest and submitted information on the four paid electricity accounts.
In March, Nexamp approved the village as a potential anchor account and began negotiating a contract. The village Sustainability Commissioners, in particular Co-Chair Susan Charrette, were involved in the negotiations. They and village staff members also met with Plan-It Green and Seven Generations Ahead, which had inquired about the process and how they can help assist other communities in replicating it.
Anchor accounts for community solar projects are long term contracts focused on accounts with high energy usage, Jansen said. Twenty years is standard for an anchor tenant, but some contracts are as long as 35 years. A large energy consuming customer is needed to get a solar farm online to ensure long-term usage of the facilities energy. From there, residential subscribers are used to fill in the remaining space. Because these can cycle on and off at any time, an anchor account levels out the fluctuations of those small usage accounts residential accounts.