Peninsula Clean Energy Reaches Innovative Solar Agreements With County, Cities
Installation of solar on public buildings will be among first renewable projects nationwide to utilize federal direct pay benefits
REDWOOD CITY, CA – As one of the first public agencies nationwide to utilize newly expanded federal renewable energy incentives, Peninsula Clean Energy has reached innovative agreements with nine cities and the County of San Mateo to install solar and future battery storage on public buildings.
Peninsula Clean Energy is executing 20-year power purchase agreements (PPAs) to install 1.7 megawatts of solar power on 12 public buildings in San Mateo County and the City of Los Banos.
The agreements include solar power systems at the San Mateo County Human Services Agency Center in Redwood City; Atherton Town Hall; Brisbane Mission Blue Center; Colma Community Center; Hillsborough Public Works Yard; Los Banos Community Center; Los Banos Wastewater Plant; Millbrae Town Center complex; Millbrae Recreation Center; Pacifica Community Center; San Bruno Aquatics Center; and the San Carlos Youth Center. In addition, at least three communities will be adding battery storage to provide backup power.
The solar power installations are expected to be operational by the end of 2023 and deliver an estimated $17 million in lifetime energy savings to participating cities and San Mateo County.
Peninsula Clean Energy is providing the construction capital and is among the first to utilize the direct pay benefits included in the federal Inflation Reduction Act. This allows qualified tax-exempt project developers to directly claim the full value of the 30-percent federal Investment Tax Credit without having to share the value of the credit with a tax equity partner. The result is a lower PPA price and higher energy savings for the cities and county facilities where these projects will be installed.
“Climate change is real and it’s impacting us now more than ever. It’s vital to our community and the environment to expand renewable energy projects and slash energy costs,” said San Mateo County Board of Supervisors Vice President Warren Slocum, whose district includes the county’s Human Services Agency Center. “The identification and coordination of these public sector projects are a practical demonstration of the benefits Peninsula Clean Energy brings to our communities.”
“We want to do everything we can to bring more renewable power online. With this innovative program, we take the burden of solar and storage project development off of city and county staff and achieve cost reductions through scale,” Peninsula Clean Energy CEO Jan Pepper said. “This is a win for our customers as well as a win for Peninsula Clean Energy in continuing to execute on our public agency mission. Congress and the Biden administration have given us a valuable tool with ‘direct pay’ under the Inflation Reduction Act.”
A second round of the program is also already underway, with Peninsula Clean Energy having completed designs and interconnection applications for more than 40 sites to install approximately 15 MW of solar and potentially battery storage systems across its service territory.
About Peninsula Clean Energy
Peninsula Clean Energy is a Community Choice Aggregation agency. It is the official electricity provider for San Mateo County and for the City of Los Banos. Founded in 2016 with a mission to reduce greenhouse gas emissions, the agency serves a population of 810,000 by providing more than 3,600 gigawatt hours annually of electricity that is 50 percent renewable, 100 percent clean and at lower cost than PG&E. As a community-led, not-for-profit agency, Peninsula Clean Energy makes significant investments in its communities to expand access to sustainable and affordable energy solutions. Peninsula Clean Energy is on track to deliver electricity that is 100 percent renewable by 2025. The agency has earned investment grade credit ratings from Moody’s and Fitch. Follow us at PenCleanEnergy.com, Twitter Facebook and LinkedIn.