A proposed solar project in Frankfort could model cheaper, cleaner energy in KY

While some of Kentucky’s largest electric utilities are attempting to restrict access to rooftop solar, Frankfort has an opportunity to develop an innovative solar project that could cut electricity costs in half for city and county governments and local public schools, saving these agencies and local taxpayers a combined $1.2 million annually, according to a new Apogee Climate & Energy Transitions report, “Local Solar, Local Savings.”

The 20 megawatt (MW) solar facility would be located on about 150 acres within Franklin County, and would leverage one of Frankfort’s key assets, the Frankfort Plant Board (FPB), as a community partner in the work. Municipal utilities like the FPB aren’t regulated by the state Public Service Commission, which means they can set their own energy policies and lead initiatives that provide broad benefits to their communities, rather than being driven by shareholder profits. Municipal utilities have more flexibility to explore how clean energy resources, like solar and energy efficiency, can help their customers.

The Frankfort project proposes using a solar power purchase agreement (PPA) – something that is not available to customers of PSC-regulated utilities. A PPA means the project could be developed with no up-front or long-term maintenance costs. A private developer would build, own and operate the solar facility, and provide participants with a fixed, low-cost price for electricity for 15 to 25 years. In return, the developer gets access to solar tax incentives.

The “Local Solar, Local Savings” report describes how the benefits of this project would ripple through the community. Lower energy costs for schools and local governments would make more resources available for education and vital community services. A $25 to $35 million investment in the solar facility would generate economic development and improve the local tax base. The local utility would benefit from lower wholesale power costs and reduce financial risks in their power supply.

At Mountain Association, we support the transition to a new economy for Central Appalachia and Kentucky. Our Energy Program has worked for 10 years to help small businesses, non-profits, local governments and homeowners in Eastern Kentucky access benefits of clean energy by lowering their energy bills, generating their own renewable power, and developing new businesses that provide energy efficiency services.

Eastern Kentucky is home to seven municipal utilities that could take on similar projects to the one in Frankfort with similar benefits. Berea, Benham, Barbourville and Corbin, for instance, are members of the Kentucky Municipal Energy Agency (KYMEA), which is preparing for a loss of 130 MW of coal and gas power to their supply in 2022. This is an opportune time for KYMEA’s members to consider supporting local solar development and other customer-focused energy efficiency measures.

The benefits of such projects are real. The Ouachita Electric Cooperative Corp. (OECC) in Arkansas is a leader in assisting its customers with solar and energy efficiency. They built a 12 MW solar array and operate a Pay-As-You-Save program. OECC recently announced they are reducing rates as a result of the cost-savings these clean energy programs provide. The Batesville School District in Arkansas invested in a large solar array and comprehensive efficiency improvements that resulted in enough savings to increase teacher salaries by about $2,000 to $3,000 per educator, per year.

The opportunity Frankfort has to build a 150-acre solar farm to serve their local energy needs and save millions for their schools and public agencies illustrates the power of clean energy, creative thinking and local control. We commend Frankfort’s community leaders for considering this groundbreaking project, and encourage Kentucky’s other municipal utilities to think about how clean energy initiatives could benefit their communities and customers.

Chris Woolery is the Residential Energy Coordinator at the Mountain Association. He can be reached at chris@mtassociation.org.