There has been a recent uptick in the number of municipalities, solar developers, and utility companies evaluating green space for the potential installation of ground-mounted solar energy projects. This growing interest is not surprising, as the community benefits of solar energy are far reaching. For municipalities, going solar can create opportunities for cost savings and community development, but how exactly does a municipality afford to “go solar?”
Going solar
To “go solar,” municipalities need to install photovoltaic (PV) panels on either a single site or a fleet of buildings. The owner of the PV equipment varies from project to project, but most municipalities pursue either a direct ownership or third-party ownership model. Under direct ownership, the municipality purchases and owns all solar PV equipment. Under third-party ownership, a separate entity owns the solar panels installed on the municipal buildings, and the municipality pays the company for the electricity produced by the panels.
There’s a Grant for That?
Many solar projects involving a rural utility, cooperative, school system, or municipality qualify for federal grant funding. The U.S. Department of Agriculture Rural Development (USDA RD) offers a variety of grant and loan options through the Rural Energy for America Program for eligible Renewable Energy Systems and Energy Efficiency Projects. These programs offer financial, technical, and educational assistance to help improve a community’s quality of life through sustainable infrastructure and economic opportunities.
Funding for these projects is also available on the state level. The Wisconsin Department of Administration offers zero-interest loans for some renewable energy projects using a revolving loan fund for municipalities. Additional state funding opportunities are published on the Public Service Commission website at PSC Funding Opportunities (wi.gov).
Learn More
If you have questions or would like to learn more about how to fund a municipal solar project, please contact an R/M expert today.
About the Authors
Bridgot A. Gysbers
Economic Consultant
Bridgot recently joined the R/M team as a Financial Consultant. She has a diverse background in utility regulation, including 16 years of experience in municipal and investor-owned utility regulation in energy, gas, water, and sewer utilities. Bridgot developed the revenue requirement for a majority of the water rate cases regulated in Wisconsin and served as the lead auditor for several of the most complex investor-owned cases involving electric, gas, and water utilities. At R/M, Bridgot works to find financial and management solutions for public utilities.
