Middletown Set to Go Green with Solar

Middletown is ready and set to go green by doing its part in the county-wide solar energy initiative.

Dubbed the , the plan is being undertaken by several county municipalities, including , its sewerage authority and some schools.

The program is touted as one that is predicted to give an economical and ecological boost to towns.

Requiring no capital spending outlay, essentially, MCIA’s Renewable Energy costs nothing in municipal tax dollars. Its debt for design, engineering and consultant costs are assumed entirely by the county entity.

The developer that wins the bid to construct and maintain the solar structures — and provide, or sell off, the energy at a reduced rate to the schools and municipal buildings employing the solar initiative — is also responsible for maintaining and insuring the panel structures.

What’s the benefit to the developer? Tax incentives, discounts and federal program eligibility for undertaking “green” project.

The program is forecasted to save the municipally-run components upwards of $2 million over the 15-year length of the contracted program. It is slated to save the schools a maximum of $2.5 million and minimum of $893,000 over the 15 years.

The only requirement to reap the lauded long-term environmental and fiscal benefits is that the township adopts “guaranty” bond ordinances. And that’s what the governing body did, unanimously, at its regular on Monday night.

The “guaranty” ordinances act as only a formality to ensure participation and guarantee that should the developer default, “the money is sitting here for Middletown (to be covered),” Mayor Tony Fiore said at the meeting.  “Let me be clear. The Township of Middletown is not taking on another $38 million in debt.”

The $38 million the mayor was referring to is the estimated cost of to employ program in all the participating municipalities in the county: Middletown and its schools, Upper Freehold Township and schools, Tinton Falls, Howell, Marlboro and Eatontown.

The “guaranty” ordinances were allocated as follows: $8.7 million, for the municipal-related locations participating; $3.3 million for the Township of Middletown Sewerage Authority; and $12.6 million for schools.

Call it a security measure, said Doug Bacher, a financial consultant with the MCIA who was present to answer questions during the ordinances’ public hearing.

“This is nothing new,” he said. “When a county guarantee is used  — and we (MCIA) have a triple AAA bond rating, which is better than the federal government — these ordinances just say that if there is a default, Middletown is guaranteeing that it is the one (entity) that gets hit with the remainder of the debt … that money will be sitting here for Middletown.”

There is no capital outlay of municipal funds, Mayor Fiore and Township Attorney Brian Nelson stressed.

All feasibility studies, design, panels and installation are free to all towns participating. The county picks up that tab. Those costs were not available.

When all participating towns are on board and each has adopted its guaranty ordinances, then requests for proposals will be advertised and a private provider/developer, otherwise known as a Power Purchase Agreement agent (PPA) will bid on the bundled projects and offer rates. The designated PPA then sells the energy back to the towns and schools at a lower-than-standard tariff rate.

While actual savings over the 15 years of the MCIA project’s duration, there must be a guaranteed certain percentage of projected savings, by law, in order for a PPA to qualify to win the bid.

The schools are having canopy solar panel structures with underside lighting erected on chosen school grounds. The canopy structures are the most expensive, but the schools have no place to put ground structures and roofs have been deemed unsuitable for placement (too old and not sound enough to withstand the 15-year duration). The township will use mostly roof and ground solar mounts.

An ordinance "authorizing capital improvements" for the township was also adopted Monday night. When asked if any of the improvements included roof replacement for some of the buildings slated to house the solar panels, Township Administrator Anthony Mercantante said, "Yes," adding that the roofs needed replacement anyway.