Tari s expected to have little impact on IID’s eGreen program

Despite a recent rise in the price of imported solar panels since the start of the year, Citizens Energy Corp. and the Imperial Irrigation District are confident a project intended to provide solar power for about 15,000 low-income customers can go forward.

In January, IID and the non-profit energy company CEC signed a power purchase agreement to procure power for the district’s eGreen program.

Under the agreement, Citizens Energy was required to provide a firm dollar amount regarding the price of solar panels to the IID by April 1. However, due to the initial impact of new tari s, the price of the imported solar panels has increased 10 cents a watt.

During the most recent IID board meeting, CEC Chief Executive Pete Smith told the board that since the price is “a little high,” the company will hold o on purchasing the solar panels until the fall when it believes they will be cheaper.

Since the solar panels are not needed until construction starts toward the end of the year, CEC is hoping that price will come down in the next few months.

IID’s energy manager, Vicken Kasarjian, told the board it would be “illogical” for CEC to procure the panels at this time and at the current price only to store them for several months.

In January, President Donald Trump authorized 30 percent tari s on imported solar panels, which caused a spike in the market, but CEC believes the market will stabilize later in the year.

“(Tari s are currently) washing its way around the market but we believe the price is going to continue to come down, and I think that is going to favor the PPA price,” Smith told the board. “We still think it’s a great project, and we are hoping panel prices continue to come down from when they spiked in January after Trump Administration imposed tari s.”

The current agreement would cost IID approximately 2 cents per kilowatt-hour. With the current solar panel cost that could rise to 2.3 cents per kilowatt-hour.

“We are continuing to monitor it and feel confident prices should continue to come down,” Smith said.

His optimism isn’t just wishful thinking. In recent reports, the Wall Street Journal and Utility Dive have reported the impact of the new solar tariffs has been much more benign than previously thought.

According to the reports, the solar industry is experiencing constant increases in new capacity every year that have put downward pressure on costs. That has caused the tariffs to have less of an impact than previously anticipated.

The PPA signed in January consists of the IID paying a rate of $29.75 per megawatt-hour for 20 megawatts, while Citizens Energy will donate an additional 10 megawatts of power that will, in essence, drive down the price for the power to $19.83 per megawatt-hour.

The new solar project will be located on approximately 200 acres of district-owned land, leased to Citizens, and connected to IID’s electric system.

The district will use the energy purchased from the project to lower the energy bills of its qualified low-income customers and give them access to renewable energy without investing money on solar panels themselves.

The district will have an option to purchase, own and operate the project equipment at the end of the 23-year agreement.