6.
Environmental (J. Wollnik)
Discussion of Opportunities for Community Solar on the Fabyan Property
A.
Environ. & Water Res. Dir. Wollnik stated reminded the Committee that a
potential solar revenue source for Kane County coming from the Fabyan
property is currently being assessed. The purchasing department issued a
request for approval (RFP) to find out if there was any interest in developing
community solar on the Fabyan property. With assistance from the purchasing
department, and Founder and Partner of Progressive Energy Group, Arnie
Schramel, as the consultant, along with environmental and water resources
staff, they would make up the team that reviews the proposals that were
received. A recommendation would then be made to the Energy and
Environmental Committee to move forward with the community solar project on
the property.
Founder and Partner of Progressive Energy Group, Arnie Schramel, presented
information on Community Solar on the Fabyan Property. He stated that the
guiding principals are to find alternative revenue for vacant county land, return
state mandated renewable energy investments to Kane County, and lower
ComEd Electric costs. (Committee Member Tarver* left at 10:00 a.m.) By
lowering the ComEd costs, it would save money for county residents and
businesses, low income qualified families, and county-owned facilities. Schramel
noted that in order to install community solar, you need a special license from
the Illinois Commerce Commission, and be registered with the State of Illinois
Solar Program. According to the RFP, the solar unit must be owned and
operated by the winning bidder, with a direct land lease paid to Kane County.
Typically a lease option ranges from 25 to 35 years, with the solar company
assuming the tax obligation property. The Illinois tax law is based on the size of
the systems and the local tax rates. The size of the proposals varied anywhere
from eleven to twenty-five acres. The county is projected to have annual lease
payments between $100K to $130K per year, with property taxes paid by the
developer for the first year ranging between $20K to $40K. Schramel stated that
all three developers agreed to conduct a community-driven solar field, giving
preference to the county's facilities, and residents, to be the off-takers of the
solar production. Developers have committed to ComEd a range of $1.5M for
infrastructure improvements, and interconnection charges. Schramel added that
in order to qualify for the 30 percent federal tax credit, the projects have to start
by July 4, 2026, and be in production by December 2027. The next steps will be
for the county staff to review and recommend the best proposal, get feedback
from the Energy and Environmental Committee on any additions, changes, or
recommendations, schedule a Board meeting for a presentation and voting, and
obtain a legal review of the developer's contract terms. Further discussion
ensued. The Committee provided their consensus to proceed with preparations
and recommendations for the project.