Solar energy program may be a boon for Port

The City of Port Washington could earn as much as $40,000 annually if it allows WEC Energy Group — the parent company of We Energies — to place solar panels atop some of its buildings and on vacant land it owns.

“The economics of renewable energy are changing,” Richard Stasik, director of regulatory finance, planning, systems and strategic and special projects for WEC Energy Group, told the Board of Public Works Tuesday.

He asked the city to participate in the Solar Now pilot program, in which municipalities and school districts host solar panels in return for a fixed lease payment.

Works Board Chairman Jason Wittek was enthusiastic about the proposal, saying, “This is a great opportunity. I think we should definitely pursue this.”

In Port Washington’s case, Stasik said, if the city were to produce about 900 kilowatts, it could receive about $40,000 annually.

Solar arrays would be placed atop buildings or mounted on racks on the ground, Stasik said, adding the utility would pay for and maintain them.

A total of about 90,000 square feet of roof space would be needed for Port to realize the $40,000 lease payment, he said.

The utility is seeking a 20-year lease with the possibility of two five-year extensions, Stasik said, noting this would cover the life of the solar panels.

At the end of the lease, the utility would negotiate with the city what to do with the panels — sell them to the community, replace them or remove them.

“We don’t know any more than anyone in this room what the future’s going to hold,” he said. 

Ald. Mike Gasper, a member of the board, asked whether the lease payments would reflect any cost of living increases or other adjustments. No, said Stasik, who noted that the payments would vary slightly depending on the energy produced.

“Some years it might be a little bit less because you have more cloudy days,” he said, while it might be more if it’s a particularly sunny year.

Wittek asked whether the city would be better off financing the solar array on its own and selling the energy it produces to the utility. That’s questionable, Stasik said, estimating the payback if the city did it on its own at a dozen years.

Ald. John Sigwart questioned the aesthetics of the panels, asking, “Are they all ugly or are some better looking than others?”

While the panels all look about the same, Stasik said, because of the way they are tilted and mounted, people may not even notice them atop buildings.

They would be similar to the solar array atop the Old Theatre Square building next to City Hall that houses Java Dock, City Administrator Mark Grams said.

Although the city has a number of buildings where the panels could be mounted — City Hall, the street department garage, library, fire station and marina, for example — many of these buildings will need roof work done in the coming years, Grams noted.

That could be an issue because WEC does not want the roofs to be replaced over the life of the solar agreement, he said.

Sigwart suggested that the city phase in the solar panels as it replaces roofs, saying, “We don’t have very many new roofs.”

But Stasik said the city then runs the risk of not being able to maximize the benefit, since the pilot program has a cap of 35 megawatts. If other communities in the program produce that amount, he said, the city would be out of luck.

He said the utility is approaching the Port Washington-Saukville School District, other communities and some business users to see if they want to participate in the program.

Noting the potential annual income that could be realized, Gasper said the city should move ahead, noting the lease payments could cover the cost of replacing some of the roofs.

  The board took no action on the proposal itself but directed city staff to continue negotiations with WEC Energy Group.