Hadley Select Board to review solar landfill proposal

HADLEY — A steering committee examining options for putting photovoltaics on the town’s capped landfill is recommending to the Select Board a proposal that could provide the town $4.1 million in combined payments and energy savings over the next 25 years.

The Solar Task Force, also known as the Solar Landfill Steering Committee, is advising the Select Board to contract with Sunwealth, a Cambridge-based investment company, for use of the 14.6-acre site, located along the Connecticut River off Cemetery Road.

A memo from Michael Docter and Shardool Parmar, who have co-chaired the task force, could be acted on by the Select Board at a meeting Monday at noon. The virtual meeting was scheduled after the board canceled its Wednesday meeting due to technical difficulties.

The proposal for the 1.3-megawatt project comes as town ownership of solar on the landfill is no longer a viable option due to the phaseout of the Federal Investment Tax Credit. Docter said that this was lost in the federal big beautiful bill, which would have subsidized 30 to 40% of the project on the town’s behalf.

Previously, Docter had recommended pursuing a project using provisions of the federal Inflation Reduction Act that allows towns to do projects on their own and get all the benefits. But this project, which could have led to up to a 2.5-megawatt project, was no longer practical.

The memo notes that “The Hadley Solar Task Force has requested and reviewed proposals from solar developers that would act as asset holders and provide the town with significant discounts on electricity as well as an annual PILOT (payment in lieu of taxes) payment.”

The discounts on energy production would be in addition to the money that the town already saves through its current arrangements with its energy aggregation.

The only other proposal came from Kearsarge Energy of Boston, with a lease rate of $50,000, an energy discount of 15% and assuming a 1.5-megawatt system. Over 20 years, this would net the town $980,000, in a best-case scenario, and an overall value of $1.2 million.

Select Board member Jane Nevinsmith, a liaison to the task force, said the recommendation should be to sign a contract as soon as possible.

According to Sunwealth, the town would enter into a power purchase agreeement and buy electricity from Sunwealth at a discounted rate of 30%.

There is no battery storage required and no batteries are included in the proposed installation, which would be located near the town’s transfer station. Sunwealth will be responsible for removing the system after 25 years.

Power Options, a nonprofit that handles the competitive bidding process, has already preapproved Sunwealth, saving the town significant time and resources, the task force members wrote. Membership in Power Options costs the town between $500 and $1,000 annually.

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