County solar array estimated to recover costs by 2043

By John Watson Local Journalism Initiative Reporter

The return on Wheatland County’s investment into a solar array atop the administration building will take slightly longer than originally anticipated to pay off.

A report was brought forward, Sept. 2, to council, providing an update on the status and efficacy of the array.

Jose Podio-Cuervo, manager of Technical Services, explained the 215 solar panels installed on the administration building in October 2016 have thus far produced a total of 607.8 megawatt hours of electricity, which averages approximately 66.3 megawatt hours annually. 

“Based on the updated forecasted expenses and energy generation cost saving, the county’s payback period is currently estimated at 27 years, with full payback anticipated by 2043,” he said. “The total installation cost was $118,790, of which $86,002 was paid by Wheatland County after accounting for a $32,788 Alberta Municipal Solar Program (AMSP) grant.”

He added for the public’s reference, it is important to bear in mind that municipalities typically benefit from lower energy costs compared to that of a residential system.

Additionally, the calculation being applied within the report and current return estimates does not account for “rate-switching,” whereby customers take advantage of Alberta’s Micro-Generation Regulation.

Under this approach, should the solar array be producing more electricity than the building is utilizing, the excess power is able to be sold back to the provincial power grid at a higher rate. 

Conversely, during periods when consumption of electricity exceeds production, a consumer may still purchase electricity from the grid at a discounted rate. 

Coun. Tom Ikert inquired as to whether the solar panels present on the county’s administration building are as efficient now as they were when they were installed.

Their effectiveness was described to be slightly less efficient to date than when they were installed; however, they are still within their performance warranty. 

At the time of installation, the panels making up the array installed on the administration building were provided with a 25-year warranty. This is set to expire in 2041, two years before the projected expense recovery date.

The payback period was calculated based on the money that was contributed by the County to the project as opposed to what was spent in total.

The Alberta Municipal Solar Program grant was not considered, thus it was pointed out it will take even longer than the projected 27 years in the report for the total taxpayer expense from across the province to be recovered in full.

In 2016, the original estimate for a return of investment timeline on the solar array was approximately 20 years to make back the County’s expense. 

The report on the ongoing performance of the solar array was accepted by Council as information and no voting further voting took place on the topic.