Solar-generated power will cost HG&E less
Date: 4/19/2011
April 20, 2011By Katelyn Gendron
Assistant Managing Editor
HOLYOKE — Thanks to federal and state tax credits and incentives, Holyoke Gas & Electric (HG&E) has jumped onto the solar power bandwagon.
The municipally owned utility company has entered into a 20-year power purchase agreement with Constellation Energy for electricity generated from New England's largest solar installation, beginning this summer.
"A year ago we wouldn't have had much interest in solar but the incentives on the federal and state sides [have made the project viable]. Without this, project would not be viable," James Lavelle, manager of HG&E, said, noting the federal production tax credits and the state's Solar Renewable Energy Certificate program, which "provides significant incentives for solar energy."
HG&E will purchase the electricity for less than that generated from "conventional sources," totaling five to six cents per kilowatt-hour, according to Lavelle. The solar installations will be located on Mueller Road and Meadow Street, he said.
"Overall everybody's [utility] rates will decrease. This will put the city of Holyoke on the forefront of clean, renewable energy and will offer our businesses low cost options," Mayor Elaine Pluta said.
The solar power system will generate approximately 5.5 million kilowatt-hours of electricity annually. The same amount of power generated by conventional sources would otherwise "result in the release of 3.950 metric tons of carbon dioxide or the equivalent of emissions from 755 passenger vehicles," according to information released by Constellation Energy.
"Large-scale solar generation is an attractive option for municipal utilities to manage volatile energy costs for their customers and meet renewable energy goals," Michael Smith, senior vice president of Green Initiatives for Constellation Energy, said. "In states like Massachusetts with strong market-based incentive programs, Constellation can provide solar power to municipal utilities at a rate that is significantly less than electricity from other generation sources, which benefits both the environment and the power customers' bottom lines."
