This $ 9.7 million project in Newark will use the energy savings to pay off a low-interest loan
Reading time: 2 minutes
City of Newark plans to combine solar power, energy conservation, roofing, heating and air conditioning (HVAC) projects into a $ 9.7 million package that will not increase bond debt from the city.
Jeff Martindale, the assistant city manager, said in an email message that the combined project will be funded through savings from solar power as well as increased energy efficiency in lighting and fixtures. new HVAC systems.
The city previously awarded New Castle-based Seiberlich Trane, through a competitive bidding process, an energy service company contract for projects that would reduce the city’s electricity consumption.
The financing will come from a loan with Bank of America with an interest rate of 2.345% over 20 years which will be repaid by energy savings and possible subsidies.
Roofing and HVAC projects were already in the capital budget. “These urban projects would cost the city millions of dollars in current resources in the near future, so bringing them together into one cost-neutral project is a significant victory for the city,” Martindale said.
Seiberlich Trane will manage the projects under the supervision of the city.
Solar projects, at a minimum, will quadruple the city’s solar power generation and account for about 2.6% of the electricity consumption of the city’s municipal electric utility. The city’s solar power supplies electricity to the equivalent of two or three dozen homes,
The city now has solar panels at McKees Solar Park near Cleveland Avenue (automatic line). The expansion will be in addition to McKees, Police and Town Hall Town Center), the George Wilson Center, the town’s Field Operations Complex (maintenance yard) and a field near the Newark Reservoir.
The city’s electric utility buys electricity from the wholesale market, with solar power providing savings. The city will also receive payments from Delaware Municipal Electric Corp., an entity serving the state city-owned electric utility.