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UNION COUNTY — Work will begin soon on a project to cover dozens of government buildings across Union County with solar panels in one of the first efforts of its kind in New Jersey.
The initiative, dubbed the Renewable Energy Program, is designed to give local governments a way to receive the benefit of solar power with no start-up cost. The 16 organizations that are participating, from cities, to schools, to libraries, will simply purchase energy at a reduced price.
It follows in the steps of a similar initiative launched last year in Morris County, where thousands of solar panels were installed on school and county buildings.
The newer program is organized by the Union County Improvement Authority, which bonded about $15 million, or 70 percent of the start-up costs, to fund the project, according to county officials.
That money, however, will be repaid over 15 years by Tioga Energy, a California-based company that will install and operate the panels. Tioga is also putting up the remaining start-up cost, about $6.5 million. Tioga will earn a profit through tax breaks and the sale of solar energy credits.
“It’s almost like bulk purchase, only without all the municipalities incurring any cost,” said Charlotte DeFilippo, the executive director of the authority. “It’s the best of both worlds. We’re very excited about it.”
The solar panels, spread across 44 buildings and parking lots, will produce a combined 3.4 megawatts of electricity, enough energy to power some 700 residential homes.
The arrangement will save taxpayers money, officials from the authority said. Over the course of 15 years — the length of the contract with Tioga — the participating entities will be able to save an estimated average of 52 percent on the electricity purchased through the program, according to Jonathan Williams, the general counsel to the improvement authority. That savings is limited to the amount of power produced by the solar panels.
The county had earlier estimated a total savings over 15 years of about $6.2 million, but has since scaled back the program. It now predicts a total savings of about $4.7 million, Williams said.
DeFilippo said plans are in the works for a second round of installations. She said some municipalities who were unsure about the initiative when it was first pitched have changed their minds.
In the first-round, solar panels are planned for locations in Cranford, Hillside, Linden, Winfield, Plainfield, Rahway, Roselle, Springfield, Garwood, New Providence and Roselle Park. Union County is also installing panels on some of its buildings. Work will be completed by next May.
