GOLDEN SUN TO POWER S.F.

San Francisco Approves Major Solar Project
Nick Chambers, May 8, 2009 (NY Times)

"San Francisco’s Board of Supervisors has approved a plan to build what would be one of the largest solar photovoltaic arrays in California. With five megawatts of capability spread over 25,000 panels, it will, if completed, also be among the largest municipal solar projects in the United States…(Larger nonmunicipal arrays exist, including a 14-megawatt, 70,000-panel array at Nellis Air Force Base in Nevada.)

"San Francisco’s proposed system — which would produce roughly the amount of energy used by 1,000 households, the developers said — would bring the city’s total solar capacity to seven megawatts. It will be used to power municipal properties like schools and government offices…"

Wait for that last line: “When I come home to you San Francisco, your golden sun will shine for me.” From mnkerr via YouTube.

"Under the [Power Purchase Agreement (PPA)], Recurrent Energy, a local solar company, will assume the initial financial responsibility for the panels, as well as pay for continuing operating and maintenance costs. In return, the city incurs no upfront expenses, but is obliged to purchase energy directly from Recurrent Energy at a cost of 23.5 cents per kilowatt-hour, plus 3 percent per year…

"In years 7, 15 or 25 of operation, the city has the option to purchase the array outright at fair market value or $33 million — whichever is higher. [Construction is scheduled to begin this summer and be completed by 2010.]"

Right city, wrong song title. From zzselegna via YouTube.

"…Four of the 11 San Francisco supervisors voted against the project, most of them citing concerns that the deal did not allow the board to review the contract terms each year. Other opponents thought the city would end up wasting money over the 25-year life of the agreement, should solar panel prices drop significantly in the short term.

"Proponents of the deal, however, argued that the project would not be possible without the public-private partnership. By farming out construction to a private company, the project becomes eligible for major federal tax incentives worth 30 percent of total project costs [estimated at $40 million in initial construction costs alone]…[Without the tax credits, the cost would be] over $85 million…"