MINSTER — For Minster residents who want to invest in solar power, the village is preparing a first-in-the-state Community Solar program that promises lower electric rates.
Don Harrod, village administrator, said the program will allow residents to lease the use of 2,288 panels in the village’s of the 44,000 panels for the new community solar field.
Harrod said this is the first time that the parent company of the village’s solar panels, Madison Energy, is offering the power sharing program in Ohio. He said they have other programs in similar states. “It’s like a community garden,” said Harrod, “where a common area is set up for people to invest in solar power.”
The program will offer lower rates rates for two reasons. The first reason for lower rates will be the fact that there will be no transmission fees, which are half the cost of all electric bills. “Since the electrical power is generated here in our own solar fields, the electrical supplier cannot charge for transmitting that power to the village,” he explained.
The second is the potentially lower cost of electric generation through solar power over time. For example, each panel produces approximately 60.4 kilowatt per hour (kw/hr). A regular household electric consumption is around 600 kw per month. So renting 10 panels would fill the usual power use. A customer will commit to paying 0.85 cents per kw/hr for a monthly bill of around $51.35. This saves around $9 per month on their bills just on electrical cost.
The one downside is that power costs could dip over time. “However, as older coal producing plants are shut down due to emission issues, the demand for solar and other renewable resources will continue to increase,” he explained. The cost of solar power installation has also decreased as facilities become more efficient, he added.
Besides potential savings on electricity costs, Harrod said there will be a couple of other advantages in investing in the community solar program. “For one, there will be no need for homeowners to invest in capital improvements such as solar collectors in their back yards or on their roof and if they move, they can take their investment with them to the next location,” he said. “Also, renters in town will also be able to invest in the program as well.”
There are no upfront fees to become part of the program. “Technically, all residents benefit from the solar program, but this community share idea allows them a little more savings,” he said.
Since the village solar program began around eight years, ago, the 44,000 solar panels were installed in phases in the village’s fields located west of the village. Phase one produces 4 mw/hr, phase two almost 5 mw/hr. The community phase produces almost 1 mw/hr.
Harrod said the village has been able to invest in solar fields because of their many industrial companies in the village, such as Dannon or Minster Machine, creates a larger power need than most municipalities in the area which means local power sources can only meet 58% of municipal power needs.
According to Minster’s website, The village of Minster owns its own electrical distribution system consisting of three 69,000 KV substations. Besides their solar power installation, the village purchases electrical power through American Municipal Power, Inc (AMP), then in turn sells to its customers at a competitive retail rate.
Why are they doing this? “We are always looking for ways to save residents money and contribute cleaner power via renewable resources.”
The village also has investments in hydro-electric plants in Ohio, a gas-fired to plant in Fremont, and coal-fired Prairie State power plant in Illinois. Depending on prevailing market rates, the village also sometimes buys power in from plants such as Blue Creek wind farm in Van Wert.
Harrod said they are finishing up preparing marketing materials and plan to begin offer the program sometime in March. In preparation, they will offer a public meeting to answer questions about the program, with notices going out to local newspapers, as well as their own social media pages. More information can be gotten by contacting Harrod at the village offices.
The writer is a regular contributor to the Sidney Daily News.