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10 <br /> <br />Travis Myren said the grant would allow the districts to do whatever they think is in their <br />best interest. <br />Commissioner McKee said it would have been more helpful to have had the long term <br />costs, and would have been interesting to see these numbers. <br />Commissioner McKee asked if anyone contacted local solar providers about how much <br />the systems would cost. Commissioner McKee asked if staff knows the efficiency downgrades <br />on these systems. <br />Travis Myren said staff has these calculations, and he can get them to the Board. <br />Commissioner McKee said there is no need at this point, but it would have been helpful <br />to have numbers that are verifiable. <br />Commissioner McKee referred to page 13, and read: <br /> <br />Solar panels have a 25-year life expectancy, and the leasing company often only <br />owns the panels for the first 5-10 years. The schools have the option to write into the <br />lease agreement that the solar company will manage any repairs and maintenance <br />either during the time the system is owned by the solar company or for the entire life <br />of the panels. After an agreed-upon period of time, the lease agreement should allow <br />the Schools to make one of the following choices: <br />1.) Purchase the panels at a much reduced cost; <br />2.) Renegotiate a new lease agreement; <br />3.) Ask the solar company to remove the panels at no cost. <br /> <br />Commissioner McKee asked if these solar companies are willing to write in any of these <br />points into a lease agreement. <br />Travis Myren said he can find out this information. <br />Commissioner McKee said it would have been nice for both the Board and the schools <br />to know the situation that would be facing them after 5-10 years. <br />Travis Myren said determining what to do with the panels at the end of a lease, or their <br />usefulness, will be at the discretion of the school districts. <br />Commissioner McKee referred to page 11, item 2, and read the following excerpt. <br /> <br />2. Are there Duke Energy Solar Incentives that apply to this project? <br />Duke Energy will provide up to $75K in incentives for public entities to install solar <br />energy systems >100kW. Assuming these potential projects offset a school’s total <br />energy demand, these projects are likely to eligible for that level of incentives (see <br />this fact sheet for more info). <br /> <br />That incentive is locked in after the design phase once Duke approves an <br />interconnection agreement, so projects could be designed with a budget of <br />$225,000. Some project money would be spent on design before the incentive was <br />guaranteed, but there could be a clause that would allow the remainder of project <br />funds to be contingent on Duke solar incentive approval. <br /> <br />Commissioner McKee said this wording leads him to wonder why one would design a <br />project before having a commitment from Duke. <br />Travis Myren said Duke will not approve an incentive unless they know certain criteria <br />about the project. He said there would be some engineering to do before one can apply for the <br />Duke incentive. <br />Commissioner Price referred to the issue of leasing, and asked if the school boards <br />wanted to negotiate a longer lease, do these companies provide upgrades during the lease <br />period.