Centre County local governments nearing decision on solar energy. Here’s what to know

Five years after a dozen of Centre County’s municipalities, authorities and other groups began discussing the prospect of buying solar power together, they’ll soon decide whether that becomes a reality.

If they agree, a power purchase agreement (PPA) would result in the building of a 22 megawatt solar array in Walker Township, with the goal of reducing costs and helping mitigate risks of climate change.

Here’s everything you need to know about this potential purchasing agreement including what it is, what the participating organizations stand to gain from the PPA, the timeline behind it and more.

What is the solar Power Purchasing Agreement?

The solar PPA is a legal contract between the 12 intergovernmental groups that, if agreed upon, would mean they enter into business with a power producer to buy energy off them for a lower rate than what it’s currently being offered at.

In this case, the power producer, Prospect 14, would enter business with College, Patton, Ferguson and Harris Townships, State College Borough, the Centre Region Council of Governments, State College Area School District, the State College Borough Water Authority, the College Township Water Authority, Centre County Government, the Centre County Housing Authority and the Centre Hall Potter Joint Authority, with each respective authority, municipality and group signing on to get a percentage of the energy available.

The leader in this field is SCASD, which makes up 54% of the overall deal. Following them is State College Borough Water Authority with 17.5%, Centre County Government with 7.8% and State College Borough with 7.5%.

“This project tackles two of the most pressing issues school districts and other local governments face: fiscal stability and ways to take action on climate change,” Peter Buck, a SCASD school board member and member of the working group, wrote in an email. “By locking in a low electricity rate that is already beating the price of the dirty fossil grid, we project savings for every group starting in year one. “

If the intergovernmental groups agree to the PPA at their monthly meetings in March and April, the agreement can then move forward into its next stages. As long as there are no objections, they will be locked into a contract with the developers for 15 years, with an option for two five-year extensions.

According to a fact sheet provided by the CRCOG, the total expected cost to explore this project is $234,725. If the 12 entities sign onto the PPA, Prospect 14 has offered to reimburse $60,000 upon completion of certain milestones.

With this amount then being removed from the overall amount, the final estimated costs to explore the project would sit at $174,725.

According to Pamela Adams, the Sustainability Planner for the Centre Regional Planning Agency and a member of the working group, if one of the 12 entities decides not to agree to the PPA, the consequences may vary.

“The PPA is unlikely to be jeopardized if one group pulls out of the project,” Adams wrote. “However, it depends on the group’s percentage share of the PPA. For example, a few organizations are planning to use 20% to 50% of the electricity generated from the PPA’s solar array while others use less than 1%. If a large user decides not to move forward the project could be in jeopardy while a smaller user won’t have as great an impact on the PPA outcome.”

Overall, according to the Centre Region Council of Government’s website, the objective of the PPA is to obtain the lowest cost of alternative source electricity. There will also be an option to purchase renewable energy credits to meet carbon reduction goals at the individual organization level.

The PPA rate starts at a fixed price of 4.6 cents a kilowatt hour, with a fixed price over 15 years.

The energy would be delivered to the buyers as it’s generated, with the members gaining renewable energy credit. This exchange, in turn, would reduce the need to buy power from the grid that’s already in place.

The PPA would lead to the diversification of Pennsylvania’s energy grid, perhaps leading other groups in other counties across the state to do the same, according to the CRCOG’s website.

What is there to gain?

For SCASD alone, it’s projected that the district will save between $60,000 and $120,000 in the first year alone, leading to additional funding for things like new teachers.

This isn’t just a SCASD agreement though — the 11 other groups also stand to benefit from this agreement as well. According to the CRCOG’s website, by pooling the electricity together, it creates a better economy of scale for each member. Not only are the solar rates already as low — or lower — than current rates but, traditional electricity costs tend to fluctuate, which solar is generally insulated from.

The project will also answer a lot residents’ questions regarding combating climate change, according to Buck.

“We also know that Centre County residents, and especially those in the Centre Region, want local governments to act on climate change,” Buck wrote. “One of the most available and impactful ways for us to do this is by advancing solar energy. We know this because surveys by the Centre County Planning Agency and by the Yale Center on Climate Change Communication show us majorities want us to act on climate change and support renewable energy.”

What happens next?

If all 12 participating members of the group decide to enter into the PPA within the next two months, the project will move forward into its next phase — the development and building of the solar array in Walker Township.

Both Buck and Adams are expecting the array to be built by no later than 2026, with cost savings expected to begin the year after that.

According to a presentation for Patton Township on the PPA, assuming that things go smoothly, it’s projected that the solar array will provide 82% of all electricity being used by the 12 participating members, which would power roughly 3,823 homes for one year.

Buck is optimistic this project will not only save money for the participating members and lead to a greener county, but will provide an educational experience for students.

“It is my hope that State College Area School District and all Centre County school students — including career and technical school students — will be able to learn about the farm by visiting it, seeing its electricity output and coming to understand solar design,” Buck wrote. “This project has created an unprecedented level of cooperation. Our citizens want elected leaders to unify and focus on challenges that matter and the PPA does just that.”

The start date for solar generation at the Walker Township installation would be Oct. 31, 2026, at the latest.

A workshop meeting is going to be held to discuss the PPA and its future on 9 a.m. Wednesday at the College Township Municipal Building, 1481 E. College Ave.