Granby Solar Canopy Proposal Would Take 16 Years To Break Even

GRANBY, CT — A proposal to install solar canopies over municipal and school parking lots would cost Granby more than conventional electricity during its first eight years and take about 16 years to recover those early losses, according to a preliminary town analysis.

The assessment, prepared by Titan Energy, examines a 123-kilowatt system serving municipal buildings and a 105-kilowatt system serving schools. Together, the canopies would generate an estimated 285,000 kilowatt-hours of electricity during their first year.

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Officials reviewed the proposal during a Sept. 14 Intra-Board Advisory Committee meeting. The committee includes representatives from the Board of Selectmen, Board of Finance and Board of Education.

The town would not own or maintain the equipment under the model recommended by Titan. Instead, a private developer would build, operate and maintain the canopies and sell the electricity they generate to Granby through a power-purchase agreement.

Titan's financial model assumes Granby would pay 18 cents per kilowatt-hour for solar electricity throughout the 20-year period. The analysis begins with an estimated Eversource price of 15.5 cents per kilowatt-hour and assumes that price will increase by 2 percent each year.

Under those assumptions, Granby would spend $7,125 more on solar electricity during the first year. The projected annual losses gradually decline as the estimated Eversource rate moves closer to the fixed solar price.

The town would lose a projected $30,900 over the first eight years. The solar systems would begin producing annual savings in year nine, when the model estimates Granby would save about $440.

Those annual savings would grow to nearly $11,869 by year 20. Granby would not fully recover the losses from the early years until approximately year 16.

At the end of the 20-year period, the model projects total savings of $41,786. The two systems would generate approximately 4.89 million kilowatt-hours during that time.

The calculation assumes the output of the solar panels will decline by one-half of 1 percent each year. The projected savings also depend on Eversource prices rising at the rate used by Titan. Lower utility-rate increases would reduce the savings, while larger increases would make the solar agreement more favorable.

Titan said the systems would need to be operational by Dec. 31, 2027, to qualify for federal tax incentives, although the company noted that certain strategies could extend that deadline.

The assessment does not commit Granby to building the canopies, and the Sept. 14 agenda did not call for a construction vote. Additional information—including the length and terms of a power-purchase agreement—would be needed before the town could move forward.

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