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Solar field would be costly for Lewes BPW

Cost would outweigh revenue over time
August 30, 2016

Building a solar array in Lewes' well fields may be more expensive than initially thought for the Lewes Board of Public Works.

General Manager Darrin Gordon said at an Aug. 1 workshop that a rough estimate put the cost of a solar array in the well fields between Savannah Road and Kings Highway at about $1.8 million.

Solar would generate a monthly average of 75,000 kilowatt-hours, with a monthly income of $6,385, translating to about $76,000 in annual revenue. After 20 years, he said, revenue generated from the solar farm would only reach $1.5 million.

He said because the panels deteriorate over time, kilowatt-hours will drop. 

“They usually only last about 15 years,” he said. “Your salesman will tell you they'll last 25 years.”

Gordon said he does not think it would work based on the estimate.

“I don't see a business model that supports us doing it right now,” he said. “Unless we're doing it for some other reason than to improve the financial health of the BPW.”

The popularity of solar continues to rise in the residential sector. Gordon said there are now 42 residential solar users within the city limits.

The cost estimate does not include grants or funds received from the state or federal government that could subsidize the cost of the project. If the BPW decreases the cost through subsidies, Gordon said, the project may be more viable.

“If we could reduce from $1.8 million down to $900,000 and then in 20 years we're going to be making $1.5 million, then the business model has been made,” he said. “But it's only being made on subsidies.”

Mayor Ted Becker encouraged Gordon to explore other potential locations for a solar field. Gordon said the BPW, at one time, entertained the idea of putting solar canopies over the beach parking lots, but that idea has not been discussed recently.

Gordon said he will continue to explore ways to bring solar to Lewes and the BPW.  

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