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Although infrastructure and foundation work are underway for the new Steamboat Springs City Hall and Fire Station complex, city leaders say on-site solar electric panels will not be installed for the buildings’ estimated completion in October 2024.

Instead, city officials are currently looking for grant opportunities for the possible installation of a larger solar district, meaning an installation of more solar panels across more buildings — including Centennial Hall next door, according to Deputy City Manager Tom Leeson.

“We are still evaluating whether or not to move forward with solar,” Leeson said. “We are looking into possible grants and are told that we would be more successful if we approached the project from a larger perspective, meaning if we included more than just the two buildings.”

If grant funding is successful, the larger solar work could take place in 2025. Photovoltaic panels could be installed on the roofs of City Hall, the Fire Station, Centennial Hall and possibly in the parking lot. The two new buildings are being constructed to be solar-ready.

“We are evaluating all our buildings to see if we can go for a larger grant,” Leeson said. “That is part of the calculus we are going to look at; where can we get our biggest bang for the buck? If we could almost do it as a district, we would have a better chance (for grants).”

The city’s previous plans to add solar panels to partially offset electricity use for the two new fully electric-powered buildings was dampened by a decision by the Yampa Valley Electric Association board in November. During the November co-op board meeting, board members voted to reduce the maximum allowable size for residential and commercial net-metering for renewable energy systems connected to the local grid. Essentially, solar planners say, that reduces the level of renewable energy that can be produced per meter, and complicates the economic viability of large solar installations.

Previous policies at YVEA allowed net-metering for up to 120% of the member’s previous year kilowatt-hour usage per service location with a maximum instantaneous output of 25 kilowatts for residential installs and 150 kilowatts for commercial. With the changes in November, that net-metering maximum size per meter is now reduced by 60% for residential to 10 kilowatts, and reduced by approximately 83% to 25 kilowatts for commercial. The updated policy also removes the 120% of usage allowance.

At the end of 2022, city leaders sent a letter to co-op officials asking for a waiver to the decreased net-metering policy “because we currently are in the design phase, and we are so close,” Leeson explained in December.

Because the city solar project could not be constructed and operational by the co-op policy deadline of Dec. 31, 2023, YVEA denied the waiver in a letter in March.

“If you are not able to construct your project within this timeline, you can still construct your net-meter project at the current state statutorily level of 25 KW per meter application,” YVEA noted in the letter. “We do understand your request and the challenges that a short construction season presents to the construction of projects of this magnitude.”

Leeson said electrical consultants told the city that the idea to add more meters in order to add more panels was “economically infeasible.”

The city received grant funds for a solar feasibility study related to powering the two new buildings, and an analysis of battery storage options for the fire station to help with resiliency and redundant energy sources, Leeson explained. The study investigated opportunities to deploy ground mount, carport and roof-mounted solar photovoltaic arrays and battery energy storage systems to address climate action goals, reduce utility costs, align with state renewable energy goals and to protect from future utility rate increases.

With solar not in the picture for construction completion, the Fire Station will utilize a diesel-powered backup generator system in case of power failures, Leeson said.

The deputy city manager said the YVEA co-op switch to forthcoming wholesale power supplier Guzman — starting June 1, 2028 — should open additional solar planning possibilities for the city. Through the Guzman contract, YVEA can provide a total of 18% of its power through locally produced renewable energy installations, compared to the current contract with Xcel that limits localized, grid-tied renewable production to 3%. YVEA officials say that 3% threshold will be met this fall when the 20-acre, 4-megawatt Yampa Valley Regional Solar Garden under construction in Craig comes online.

To reach Suzie Romig, call 970-871-4205 or email [email protected].

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