Facts about solar arrays

STEPHEN STUART
Posted 8/21/12

A recent story in The River Reporter about a town’s questions regarding a potential application for a permit to build a large-scale solar array prompts this fact sheet. Note first that the type of …

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Facts about solar arrays

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A recent story in The River Reporter about a town’s questions regarding a potential application for a permit to build a large-scale solar array prompts this fact sheet. Note first that the type of solar array intended to be built is called a solar “farm,” but it is not a farm. “Farm” is defined as an area of land used for growing crops or animals. What this article addresses is, in reality, a utility-scale solar array engineered, designed and built to sell power via the electric grid to prescribed customers.

Q. Will a solar array of this size require the clearcutting of at least 10 acres of forest?

A. That depends on a number of factors. First, if a town has zoning standards in place that regulate utility-scale solar arrays, clearcutting could be limited or not permitted in the development standard. Second, forested land may not be the best choice for the solar developer. The preparation of a site for an array is factored in to the overall return on investment of the funders (aka investors) of the project.

Q. What will happen if the energy company goes bankrupt or dissolves?

A-1. This scale of solar array is funded by a group of investors who are collectively putting up $6 million or more to develop a project. Should their developer go out of business, the investors will have another party ready to step in and manage these systems. The investor only receives a return on his or her investment if the system is producing electricity.

A-2. Zoning and permitting standards can establish decommissioning requirements that require the establishment of an escrow account that would fund the decommissioning of an idle solar array.

Q. Will generous tax exemptions be required by the solar developer?

A-1. NYS Real Property Tax Law (RPTL) Section 487 allows for a 15-year property tax exemption on renewable energy systems.

A-2. Special ad valorem assessments (fire, water, sewer, library) are not exempted from the increased assessment.

A-3. If a town does not opt out of RPTL Section 487, it can require a payment in lieu of taxes (PILOT) on the utility-scale solar array. Typically, PILOTS are related to the annual energy output of the array. A 2MW array could produce 2,400,000 kilowatt hours (kWh) of electricity per year. If a PILOT was set at one half cent per kWh produced, this could bring $12,000 to a town’s revenue.

A-4. A utility-scale solar array can be assessed on power output. A two megawatt array can be conservatively assessed at $3.3. E.g., one utility-scale array in Tusten would provide an additional $2,740 to the Tusten Fire Protection District based on the most recent Town of Tusten tax bill.

Q. Will the solar equipment be obsolete almost overnight?

A-1. Solar technology is not a rapidly changing technology. Energy output is based on the number of cells per panel, and panels are rated for output at Standard Test Conditions (STC). Recently, 30-year-old panels were tested for degradation, and they were found to still perform to factory specifications.

A-2 Solar panels, and the arrays that they form, are significant investments. They are not regarded with the throw-away mentality that accompanies electronic equipment like cell phones or televisions.

Q. Will there be a visual impact of a utility scale solar array?

A-1. Local zoning development standards can require reasonable setbacks from property lines for utility-scale solar arrays. Low-growth vegetative plantings that do not cast shadows on the panels can be required to provide a visual barrier.

A-2 Local zoning standards can determine in which zoning districts a utility-scale solar array can be built. If there is a special protection district, commonly associated with scenic byways such as the Upper Delaware River Corridor, or historic districts, a town can opt to not allow utility-scale solar development that affects those special places.

Q. Will utility-scale solar arrays provide lower cost electricity to town residents?

A. Typically, yes. The model of Community Distributed Generation allows for residential, small business, municipal, schools and non-profits (fire departments, ambulance corps) to create a shared solar project.

Q. Where can a municipality find model zoning ordinances for solar installations?

A. The NY-Sun initiative is preparing a model zoning ordinance that towns can tailor to their development priorities as set out in their comprehensive plans. It expects to present the model ordinance in April.

The Sullivan County Division of Planning and Environmental Management will be ready to assist local governments in developing good zoning for solar.

[Stephen Stuart is the co-executive director of the Sullivan Alliance for Sustainable Development.]

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