Vergas eligible for a fire hall upgrade

By Robert Williams

Editor

West Central Initiative (WCI) Energy and Adaptation Planner Griffin Peck discussed both the current solar project at the Vergas Event Center and another solar opportunity for the city.

There have been delays with the contractor’s installation of solar panels and batteries. The current delays will last until spring.

One of the major contributing factors was an unforeseen transformer upgrade that was needed to facilitate the project.

According to Mayor Julie Bruhn, current timelines for the project include early March to early May for completion.

“We do believe they are on track to meet those deadlines,” Peck said.

In Vergas, solar panels and batteries are being installed at the Event Center with multiple future uses, including as a city-wide backup power supply that could be used during an outage.

A WCI staff analysis of the project showed an expected cost of $104,280.23 and expected project incentives of $97,680. 

The incentives create a near zero cost obligation to the city and the project will also save Vergas $67,848 in energy costs over the project’s lifetime of 30 years.

A new potential project is solar power for the fire hall.

The fire hall uses 66,064 kilowatts per year split between three different services, small general service, heat and an off-peak water heater.

Total bill cost per year is $3,922, of which $2,289.67 is direct energy charges.

“The reason why this building is really a good choice for solar is the bulk of the energy is consumed under this fixed time of service heat and that’s power that’s only delivered at night,” Peck said. “Which means, when you install a solar system on a building like this you’re going to export almost all of the energy.”

The fire hall, as a solar unit, will be able to return most of its gained power back to the grid, for which Vergas would be compensated for at the going retail rate.

“It will be offset when you consume energy at night,” said Peck.

The array would be quite a bit larger than what will be installed on the Event Center.

Based on three years of power history, Peck estimated that the solar project would offset 90-110 percent of the total energy use.

Total upfront cost will be $117,500 with a primary rebate from Otter Tail Power of $58,750 and a 30 percent tax credit of $35,250, Total incentives are $94,000, leaving a balance of $30,500. 

“This is the kicker: annual energy savings of $5,100,” Peck said. “If you decided to do a project on this building the solar would more than pay for the total energy of the building. In fact, you would have $1,000 extra on top of the bill you’re currently paying for that building.”

According to Peck’s analysis, the project would be cash positive in 4.5 years and over the three-decade life of the project would save the city $149,661. 

Peck’s colleague Cedar Walters will be presenting the project to the fire hall board on Feb. 2 to seek approval. If approved, a request for proposals will be issued and the fire board would receive bids in May or June.

“This decision tonight or February 2, doesn’t commit the city to anything,” said Peck.

The city and fire board would not have to make a decision until bids are received.

Vergas may be eligible for a WCI grant, but that will not be decided until how many communities are known that will go forward with a project and overall pricing.

During last year’s projects, WCI grants were used for batteries.

“It is possible that West Central Initiative will be able to contributed grant funds to support this work, as well,” said Peck.

Other communities beginning their first solar power projects with WCI include: Audubon, Brandon, Chokio, Ottertail, Rothsay, Underwood, Callaway and Hitterdal. Cities, like Vergas, looking to join the second solar cohort are: Parkers Prairie, Hoffman and New York Mills.

“We’re hopeful we’ll get a good price with the number of communities we put together and we’re looking forward to continuing this work in the region,” Peck said.