Council Questions Schools' Solar Initiative

school officials came to Monday’s borough council meeting to answer concerns about a proposed solar project.

The school district is interested in joining a power purchase agreement coordinated by the county that would allow the district to use the energy generated by rooftop solar panels installed on the two schools.

Borough officials had expressed concern about the language of the agreement and how to protect taxpayers from bearing the financial burden in the event that the project’s developer defaulted.

“I’m not opposed to the project per se,” said Little Silver Mayor Robert Neff, Jr. to the group that included school administrators, board members and two representatives from the Monmouth County Improvement Authority. “I’m concerned about the financial aspects.”

The would enter a 15-year agreement with the Monmouth County Improvement Authority – along with the Borough of Eatontown, Middletown Township and the Manalapan, Middletown and Upper Freehold Township boards of education – that would allow it to benefit from the energy savings while not having to pay for and maintain the panels.

In the agreement that the district would sign, the improvement authority would bear financial responsibility if the developer defaulted on the project. Little Silver School Business Administrator Amy Lerner explained to Patch on Thursday that the developer will have to put up equity for the amount of the project to be used in the event of default.

But council members were concerned about the additional language in the agreement that asks for the municipality to guarantee Little Silver's portion of the project in the case of the default because school districts cannot provide guarantees. According to Lerner, wording has been added that if the the school would repay the municipality if that were to occur.

Board of Education Vice President Chris Smith said at the meeting that aside from the anticipated $7,000 annual savings in utility bills, the implementation of the solar paneling would allow the district to meet “green” initiatives.

The board has been investigating solar energy for two years but discovered  that installing and maintaining the panels would be too costly and turned towards the county's initative. Lerner said that the district has also had two feasibility studies performed on both buildings.

Although the improvement authority generally doesn't include entities as small as the Little Silver School District, Stephen B. Pearlman, an attorney for the authority, said at the meeting that the school district is included because it had expressed interest very early on in the project.

Both sides agreed that council members would read through the revised agreement and talk to professionals from the Monmouth County Improvement Authority before they make a decision by next month.