Morris County Funds Renewable Energy Projects
Sea Girt, NJ - March 15, 2010

Morris County is the first county in the country to finance cost savings solar PV projects through a public/private lease arrangement that secures all available federal tax benefits and state funding initiatives. Without this program, these public facilities would not have been considered cost effective sites for solar PV systems.

The Morris County Improvement Authority (MCIA) issued $21.6 million of debt at a 4.46% net interest cost with a county guarantee to develop solar PV power systems at nineteen county and school district facilities located throughout the county. All participants will be served by a Power Purchase Agreement (PPA) with significant rate reductions for a 15 year term. Significant program benefits include:

Total savings for school and county participants of $3.8 million ($2.3 million NPV) from the program. These savings accrue through reduced power prices. As a result, savings begin when the solar systems commence operation – there is no “payback period” – savings begin on day one.

Participating school districts realize the following benefits:
– Savings in energy costs without capital investment.
– Fixed electric energy prices that provide budget certainty and a hedge against rising energy costs for 15 years.
– Select school districts will receive roofing upgrades as part of the solar PV installation.

Financial structure provides no debt service exposure to MCIA or the participating local governments, as the selected solar developer is obligated to pay the MCIA bonds. The County guaranty of the MCIA bonds is integral to the energy savings, and the County is protected with a financial security package from the solar developer.

All school districts pay an electric rate for power from the solar PV system that is at least 35% less than the cost of utility-provided power. The solar PV systems will provide 17% of the schools' electric requirements.

The solar PV pilot program has a significant educational component for participating school districts, which includes providing solar energy kits, teacher orientations, and reports on the operation of the PV systems via the web.

A reduced carbon footprint at all participating facilities.

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