DEERFIELD — Solar energy will be the talk of the town during a special Town Meeting June 6, called to discuss and vote on tax and cheap power agreements for a proposed solar farm.
The agreement with the solar developers could net the town about $1.24 million in taxes over 20 years and save about $12,000 a year in electricity costs.
Town Administrator Douglas Finn said the developer, Lake Street Development Partners, approached the town about a year ago with a proposal to build a six-megawatt solar array on about 200 acres at 901 River Road.
The location is a former quarry at the north end of the Pocumtuck Ridge in Old Deerfield.
“The town of Deerfield is in favor of renewable energy and wants to support folks who are looking to develop solar and other renewable energy,” said Finn. “This seemed like a project that definitely was a positive for residents of the town.”
When considering how much to charge the development in taxes, the proposed deal took into account how much money the developer could spend on the array over 20 years.
According to a draft of the agreement, the solar array will be charged an annual $62,000 in taxes for 20 years, regardless of changes in the development’s value, with a total payment of $1.24 million.
Finn said the town could make about $35,000 more than it would if the tax rate was based on regular commercial assessments.
The agreement helps the project by creating a steady, long-term cost projection, making it easier to secure a loan. The developer has guaranteed not to appeal the tax rate.
“It’s a win-win for both,” Finn said, “and it also helps to ensure this goes into place.”
The power Lake Street Development Partners will produce will be sold to the town for a 15 to 20 percent reduction.
“It’s more money coming into the town at no cost to the taxpayer,” Finn said, adding that the town will save about $12,000 on annual electricity costs. “Everyone’s tax bill won’t go up quite as much.”
Lake Street Development wants to build another, 30-acre array in Shutesbury, although that project has run into resistance from people who say there may be Native American burial grounds or sacred structures on the site.