Press Releases

The Morris County Improvement Authority held a lengthy public information and question-and-answer session last night in Morristown, providing a detailed analysis of its preliminary findings on the viability of various unbuilt solar sites in the county.

Mennen Sports Arena Solar Panels

At the nearly four-hour session attended by some three-dozen residents and non-residents of the county, MCIA Counsel Matthew Jessup and Thomas Brys of Matrix New World Engineering, the county’s consultant on solar projects, focused on potential sites that could be built – if approved by the freeholders – with a specific and frank analysis of the fiscal viability of each of 15 potential sites.

Each unbuilt renewable energy site has been reviewed in terms of its long-term potential to generate revenue to help offset financial losses suffered in the county’s previous solar endeavor, and its potential to reduce energy costs for each local government entity (school district, municipal or county buildings, etc…) where solar panels would be installed.

“Contrary to what Sheriff Rochford was telling people on his robo-calls to county residents over the weekend, the goal of our current solar or renewable energy project review is to minimize future potential financial exposure for our taxpayers, to help reimburse them for past losses, and to ensure that any future steps we take are fiscally sound,’’ said Freeholder David Scapicchio.

Dave Scapicchio

John Krickus

However, due to a variety of factors – including a legal battle between renewable energy program’s developer and its contractor — the county has incurred and faces future financial losses, and renewable energy projects at 13 of
the originally scheduled sites have not yet been constructed.

The county, with the assistance of the MCIA, is now undertaking a process to determine the viability of moving ahead with the unbuilt sites, with a primary emphasis on construction and financial viability. These sites consist of facilities owned by Morris County, municipalities and boards of education located within Morris County.

Kathy DeFillippo

The special public session on Oct. 5 will give county residents a chance to get a first-hand understanding of the process we are now employing, and to get all of their questions answered,’’ said Freeholder Director Kathy DeFillippo.

John Krickus

• Site visits and inspection of roof, ground and other engineering factors;
• Analysis to determine anticipated photovoltaic production at each site;
• Financial modeling, including a preliminary ranking of sites, based on multiple factors, including installation costs, efficiency in installation, existing site conditions, energy productivity and break-even Solar Renewable Energy Certificate (SREC) values.
• Receipt of preliminary design and installation cost proposals for each site from engineering, procurement and construction contractors.

• PPA Revenue – The amount paid by each local entity for the potential supply of solar energy, in lieu of a similar payment to the traditional grid-energy supplier.
• SREC Revenue – The amount of revenue anticipated to be generated at each Unbuilt Site from the generation and sale of SRECs.
• Operating Costs – Includes industry-standard operation and maintenance expenses, as well as equipment upgrades in years 5, 10 and 15.
• Debt Service – The aggregate amount of principal plus interest to be incurred to finance implementation of the renewable energy project at each site.
• Project Cash Flow – An amount equal to the excess of the aggregate of PPA revenue plus SREC revenue, less operating costs and debt service.
• Local Unit Energy Savings – The aggregate amount of savings realized at each site as a result of participation in the program.
• Breakeven SREC – The price of SRECs needed to produce sufficient SREC Revenue, along with PPA Revenue, to result in a project cash flow of zero dollars.