Correction: An early version of this story quoted City Manager John Pinkerton incorrectly regarding the loss of efficiency of the solar arrays. The efficiency loss is in fact .5 percent per year. NorthCountryNow.com regrets the effor.

By JIMMY LAWTON

OGDENSBURG – A solar power project in Ogdensburg could save the city more than $45,000 per year over the next quarter century.

The 1.1-1.2 MW solar project will cover 8 acres of land is capable of producing 1.4 million kwh of electricity per year. A total savings is estimated at more than $1 million over the 25-year period and could be as high as $2 million depending on fluxuation of energy prices.

New Energy Equity and RER Energy Group obtained New York Research Energy Group (NYSERDA) grants to fund the project to fund the project. Pinkerton said all maintenance and upkeep on the project will also fall on the investors and the city will spend no money on the array.

“Because they get tax credits and grant money they can up in an array and charge 8 cents a kwh and still make out,” Pinkerton said.

Under the agreement the city will purchase power at about 8 cents per kwh, that’s about 4 cents cheaper than the current rate paid to National Grid rate of 11.7 cents per kwh. That amount will increase by 2.5 percent per year, while the National Grid price is expected to increase by roughly 3 to 4 percent.

Ogdensburg City Manager says the array could be up and tapped into National Grid’s lines as early as October. Ogdensburg Department of Public Work’s prepared the site in recent weeks.

Pinkerton said the companies will be bringing in the arrays soon and work will move fast once they are up.

While the cost savings itself appears to be substantial, Pinkerton said there is also a large environmental benefit. Pinkerton says the city uses about 3.7 megawatts of power and the solar array will generate nearly one-third of that total.

One drawback of the panels is that they decrease in efficiency each year.

“Solar array’s efficiency goes down by .5 percent per year,” he said.

After seven year’s the city also has the option to purchase the equipment and generate the power on its own, rather than purchasing it from the investors. Pinkerton said that decision would fall on a future board, but said the savings could reduce costs to as low as 3 cents per kwh.

Pinkerton said another project in the works has a potential for the city to add an additional 2.2 megawatts of solar power. If this were to come to fruition, the city would run largely on renewable energy.

The Ogdensburg Bridge and Port Authority is also undergoing a solar project that will reduce cost savings at its operations.

Attempts to reach OBPA Executive Director Wade Davis were unsuccessful.