Local government units, including municipalities, school districts, counties and independent authorities across New Jersey, are increasingly looking at every available opportunity to reduce costs. Reducing energy costs, which in New Jersey are among the highest in the nation, has become an obvious target of opportunity. Many local government units have used, or are considering using, solar renewable energy as a tool to accomplish significant energy cost reductions.
There are a couple of proven models under which local government units can secure a solar renewable energy facility, including: (1) a direct-ownership model, where the local government finances, constructs, owns, operates and maintains the solar project itself; and (2) a power-purchase agreement model, where the local government publicly procures a solar developer that will finance, construct, own, operate, maintain the solar project and provide the local government with energy at a reduced rate pursuant to a contract known as a power-purchase agreement.
