A new community garden is emerging on a sun-drenched postage stamp of land north of Kalispell, but its burgeoning crop won’t be parceled off at farmers markets – instead, it could help lower residents’ electricity bills and provide energy tax credits.
The Flathead Electric Cooperative’s new Solar Utility Network (SUN) is the state’s first and largest community solar project, also known as a solar garden, and once up and running next month gives FEC members an opportunity to participate in renewable energy without installing their own solar system.
Panels are now available for purchase, and FEC officials said they launched the program in response to increasing popularity in solar arrays and to offer members an alternative to installing their own panels. The racking system is Montana-made and the panels are American made.
The centralized project near Whitefish Stage Road and Reserve Drive features 356 panels that are divvied up and sold to renters or homeowners. The solar power runs directly into the distribution network and gives customers a credit toward their bills. FEC tracks the monthly kilowatt output of the entire system and credits owners their allocated share against their monthly electric bill.
Each 285-watt panel costs $900 and is expected to generate approximately 360 kWh per year. Initially, FEC members will be limited to purchasing one panel for the 25-year life of the program.
Construction has been underway on the project since June, and involves installing a south-facing, 30-degree tilted, fixed photovoltaic solar panel array on vacant land at FEC’s Stillwater substation west of Whitefish Stage Road. The project is slated for completion Sept. 15.
Although the precise economic benefits remain to be seen, and FEC’s projections are only estimates, the project allows FEC members to invest in and demonstrate their commitment to renewable energy who couldn’t otherwise do so.
In the United States, more than 50 percent of residential roofs are unsuitable for a solar panel system, either because they face the wrong way, have the wrong pitch or have too much shade.
“In general, the people who install their own solar panels on their homes and invest in renewable energy, they are generally people who really just care about renewable energy and they’re not that concerned about the payback,” Ross Holter, FEC energy services officer, said.
Another way to look at it is that if you are locking in today’s rates, which are projected to escalate at 2 percent per year, by prepaying for power for 25 years, the investment is returned in 21 years and the power is free after that.
“So you are prepaying for energy that you will receive over 20 years,” Holter said. “In 25 years, that is going to seem like a screaming bargain.”
But the highest energy users will enjoy the fastest return on their investment. Whereas mid-tier users will see a 21-year payback period, high-tier users will receive a return sooner.
The community array allows renters to participate, however, as well as homeowners who don’t want to invest in a private solar array or whose homes aren’t suited for it.
“What we did to accommodate renters is make it transferrable, so if you move somewhere else in our coverage area it transfers, and if you move away outside of the coverage area, you can designate it to someone else,” Holter said. “When you invest in a private solar system they are not mobile.”
Even smaller solar systems can cost thousands of dollars to install, Holter said.
Holter said FEC has already received interest in the program, with some members asking to purchase more than one panel. For now, members are limited to one panel each, but the policy could change down the road, he said.
If the program is successful and popular, Holter said FEC plans to develop additional phases and expand with additional solar gardens, particularly if Montana’s future in solar and wind energy continues to brighten.
“Somewhere down the road there could be technological breakthrough, reduction in the prices of solar panels or a massive deployment, and we want to be positioned for that,” he said. “If this goes well we will be open to moving forward into a next phase.”
For more information on the SUN program, visit www.flatheadelectric.com.