Using what is known as a Power Purchase Agreement, the City can pay a private developer to generate solar power on public land over a long period, typically 25 years. The advantage for the City is that the price is fixed for the life of the contract, bringing stability to energy costs. The developer gains a guaranteed long-term source of income, allowing it to recoup upfront installation and ongoing maintenance costs.
The Solar City Partnership will also foster a friendly environment for the private sector to use solar. Staff will review procedures for large- and small-scale solar projects to identify barriers to installation and decrease the steps involved. In particular, the Partnership would like to help the Zoning Code Commission develop solar-friendly guidelines that would protect existing solar systems from being shaded by new development and allow solar installations by right within certain designated zones. The zoning code should also address solar installation on residential properties, balancing the interests of homeowners and their neighbors.
Create Biogas Cogeneration Facility at Northeast Wastewater Treatment Plant
The Philadelphia Water department is currently designing a 5.6 megawatt biogas cogeneration facility to be built at the Northeast wastewater treatment plant to generate both heat and electricity. When operational in early 2011, the biogas process there could produce 50 percent of the plant’s electricity and reduce the Water Department’s overall electrical purchases by more than 10 percent. The biogas project could save approximately $2.5 million of the department’s $18.1 million energy budget. The savings would cover the $15 million capital cost of the biogas project in approximately five to seven years. This would reduce carbon emissions by nearly 22,000 tons per year and 171,664 million metric tons of carbon dioxide equivalents, according to ICF International. The present value of savings totals $54 million.