NJ Transit is poised to sign the first power purchase agreement to install a solar roof at its Egg Harbor bus garage near Atlantic City.
Typically, in this type of arrangement, a seller pays the initial cost of installing and maintaining the solar panels on someone else's property and receives tax credits. In return, the homeowner will pay an agreed price for the energy produced, which is usually lower than the price you would pay your local utility, thereby reducing the property's energy costs. The developer generates income from the sale of electricity produced by the panels.
Those details are still being worked out between NJ Transit and a provider whose name will be announced after the contract is signed, agency spokesman Jim Smith said.
The plan could reduce energy costs at New Jersey's transit facilities.
The modules planned for the Egg Harbor parking lot are expected to produce 1.1 megawatts of electricity annually. NJ Transit estimates it uses about 1.7 megawatts of electricity at the facility each year.
"We're able to offset a good portion of our annual costs with solar," said analyst Harrison Weiss, who gave the committee an update on power purchase agreements (PPAs). Wednesday's meeting.
NJ Transit's legal team is currently reviewing the PPA, which can then be signed by either party to obtain a building permit. Weiss said he expects construction to begin five to seven months after the contract is signed.
The agency hopes to learn lessons from this process so that it can replicate PPAs or similar agreements at other transit facilities in New Jersey. The agency has dozens of properties across the country that could use rooftops, parking lots and other spaces to install solar panels to offset the cost of energy use.
David Scotland, director of energy and sustainability programs for NJ Transit, said many factors must be considered, such as whether a roof can be equipped with solar panels, whether there is enough space for solar awnings and whether the production of energy will exceed other costs. , including PPA fees.
"We will develop and document a global solar process," Scotland said. "We have to try to make the steps clear for everyone involved. This makes it easier to repeat the process in many places.”
Development of solar projects.
Solar projects underway by NJ Transit include the Passaic Bus Station, designing an ideal solar bus structure, and adding solar power to the roof of the North Bus Garage and Meadowlands Maintenance Complex.
Doug O'Malley, executive director of the nonprofit Environment New Jersey, said the agency needs to move quickly to improve the PPA process and expand solar rooftops across the state, especially as NJ Transit begins the transition to an electric bus fleet. which is agency performance significantly increases energy costs.
"Egg Harbor Township cannot be isolated," O'Malley said. “There are many opportunities in New Jersey's transportation system that require solar energy.
"It's a great way to reduce NJ Transit's carbon footprint and lower NJ Transit's long-term electricity bills," O'Malley said.
This article originally appeared on NorthJersey.com: To cut costs, NJ Transit is seeking a solar power contract.
