Tioga Energy (Morristown, N.J.), a provider of renewable energy services to commercial, government and non-profit institutions, and the Morris County Improvement Authority (MCIA) of New Jersey on February 23rd, 2011 announced the completion of 19 solar photovoltaic (PV) installations located on 16 schools and government facilities throughout the county.
The projects are the first to be financed through the public-private collaboration known as the Morris Model and provide the county with 3.1MW in clean energy and more than $3.8 million in savings.
Fixed rate for a 15-year PPA
In January 2010, MCIA issued $22.3 million in low-interest government bonds to finance the projects. As the developer, Tioga owns, operates and maintains the solar installations and sells the electricity produced by the systems to the county’s schools and local government agencies at a fixed rate for the duration of a 15-year power purchase agreement (PPA). New Jersey-based SunDurance Energy provided all design and installation services.
SRECs and federal income tax incentive.
In addition to the low cost bond financing, Tioga Energy utilized New Jersey state incentives available through the sale of solar renewable energy certificates (SRECs) as well as federal income tax incentives not available to the county as a public entity, offsetting significant portions of total project costs. As a result, Morris County benefits from electricity prices approximately 35 percent less than those of the local utility.
The 16 sites participating in the project include buildings used by the Morris County government and Parks Commission, as well as public schools across five area districts. Construction on the project’s first installation at the William G. Mennen Sports Arena began in June 2010.
“In a matter of months, Tioga Energy and installation partner SunDurance Energy took us from groundbreaking to completion, enabling us to ‘go solar’ with virtually no disruptions to our operations,” said David Helmer, Executive Director of the Morris County Parks Commission. “With the addition of 1.6MW in solar rooftop and parking canopy structures, Mennen Sports Arena now receives 30 percent of its electricity from renewable resources and is a regional solar project showpiece.”
