A new $1-million solar energy project on the PMD Arena roof could generate enough electricity to power 22 homes for one year. But first the township has to decide if it is even interested in such a project, and if so, how much financial risk it is willing to take.
At its last meeting in September, Mapleton council received a $14,855 feasibility study from Essex Energy Corporation. The report suggests a 170-kilowatt (kW) project costing the township $1,044,782 would pay for itself in 12 years and, over its expected lifespan of about two decades, would have an “internal rate of return” of about 11%.
A smaller, 110kW project would cost $711,368, have a payback period of 13 years and produce a rate of return of about 8.5%.
Another option would be for the township to simply lease the space on the arena roof to Essex Energy – for the 170kW project only – which would net the municipality $5,895 to $7,955 annually.
The Essex study concludes that “the proposed PMD Arena rooftop solar photovoltaic project is feasible from a structural and technical stand point.” In addition, it is “viable from a financial perspective, regardless of whether Mapleton is the system owner or the lessor of the rooftop.”
Finance director Mike Givens said he concurs with the “fairly elaborate report” and agrees the project is financially viable. However, he said it is up to council to decide what type of risk it wants to take with ownership.
Mayor John Green said estimates show the solar project will likely lose money after 15 years, and the risky part is there’s no telling how fast the system will depreciate after that time.
Green said council will consider the report and make a decision.
