Clean Renewable Energy Bonds for Solar Projects
by Michael Carson on Dec. 17, 2010, under UncategorizedThe City of Tucson General Services Department is moving forward to install solar panels on six City facilities to convert solar radiation into electricity.
Tucson’s Mayor and Council will discuss the projects on Tuesday, December 21, 2010, and with their approval, the General Services Department will issue $11.2 million in New Clean Renewable Energy Bonds (CREBs). These bonds will be repaid through the Tucson Electric Power (TEP) Renewable Energy Standard Tariff (REST) rebate program and from energy savings generated. This project is projected to save the City $3.9 million in energy costs over the 25-year life of the project.
CREBs are bonds with a low effective interest rate, generally between 2.5 percent and 3 percent. The low interest rate and the negotiated rebates from TEP provide a unique opportunity to create and operate a project that will generate a positive cash flow for the City of Tucson and will not impact the City’s General Fund.
With the systems, the City of Tucson will be protected from future electricity rate increases because the solar sites are anticipated to generate 3.5 million kWh of energy per year, decreasing TEP bills. The project will create approximately 60 new solar jobs, save 2,782 tons of carbon dioxide and raise the City’s renewable electricity production from 2 percent to 4 percent.
With the issuance of the bonds, the six locations receiving the solar panels will be:
Thomas O. Price Service Center 1
Thomas O. Price Service Center 2
Patrick K. Hardesty Midtown Multi-Service Center
Randolph Recreation Center
Tucson Convention Center
Tucson Police Department’s new Crime Lab
Constructions on the solar projects are scheduled to begin in early 2011 and will take about one year to complete. For more information on this project, contact Doug Crockett, City of Tucson Energy Manager, at (520) 837-2616.
December 17th, 2010 on 1:30 pm
So, the City wants ratepayers to pay $11.2 million plus interest to save $3.9 million? Something doesn’t add up there.
December 18th, 2010 on 6:48 am
Worse than that, Jonathan,
TEG charges us all $3.20 per month to pay for this.
January 1st, 2011 on 7:20 pm
A solar job is an artificial and unproductive job. For each marginally useful “solar’ job created, we lose real and valuable free market jobs. There is no free lunch. Money for these solar subsidies is taken from the pockets of AZ citizens and causes reduced spending throughout the balance of the economy. Stores and shops close or reduce staff. It’s a net loss for our state and community.
The smarter strategy is to wait till solar is cheaper or some other better alternative is developed. We’re decades premature in deploying solar.
A 3kW system cost about $13,500, produces about 4800 kWh/yr, and saves our community about $150/yr in avoided fuel use. That is a 90 year payback. No one is better off, including the environment. (Except of course the solar industry)
January 13th, 2012 on 5:40 pm
Solar power is really the only way to go. We all need to do our part to spread the word. It’s just about getting the word out that solar and going green takes “just about the same effort”.