In Brick, NJ the township council were seeking ways to safely develop a capped landfill. The township will borrow the cost to build the solar field at a special low interest rate only available to municipalities. Standard Alternative, LLC, the company selected to redevelop the site, will then reimburse the township as money is disbursed.
The township will benefit from an upfront $2.5 million payment from Standard Alternative as well as annual rent of the property between $50,000 and $85,000, depending on how much energy the site produces. After 15 years, the township will own the property outright, and will be able to generate electricity for property owned by the township and BTMUA, as well as sell solar energy credits to the power company for a profit,
In exchange, Standard Alternative will make money from the deal over the next 15 years by selling its own energy credits generated by the site.
During the 15 year period, the township and BTMUA will also be able to purchase energy for about 40 percent less than the rate at which they are currently paying, saving a minimum of about $300,000 per year.
Could this form of financing offer additional impetus to the installation of community solar farms?
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