This one from New Jersey On-Line:
Taxpayers in 3 counties could be on hook for millions after solar project fizzles
The concept behind the massive solar project sounded simple enough: borrow $88 million to install panels on public buildings in Morris, Somerset and Sussex counties and then sell excess electricity, using the revenues to pay off the debt.
The concept was called the "Morris model," held up nationally as an example of how to produce renewable energy through public-private partnerships. It was the second project of its kind and the previous one was hailed as a success.
But now, nearly four years later, taxpayers could be on the hook for tens of millions of dollars the counties owe bondholders, after work ground to a halt amidst cost overruns and lawsuits.
What's more, the $88 million that must be repaid to bondholders for the 71 projects could cause "unmitigated disaster" to the three counties, according to court filings.
What could possibly go wrong:
The ambitious plans called for a developer, SunLight General, to use $88 million in borrowed money to erect thousands of solar panels atop schools and other public buildings in the three counties. They would repay the counties with the future solar revenues and local governments would get cheaper electricity.
But the market for state solar-energy tax credits -- a key part of the deal -- plummeted in the months after the deal was struck. Cost overruns mounted, and the developer and contractor became embroiled in a dispute that ended in lawsuits, according to court papers. Work ground to a halt. And while the projects in Somerset were mostly completed, only about half were completed in two of the counties, Morris and Sussex.
So the state subsidies (ie: taxpayer dollars) went away and the project was no longer economically viable. The comments are a good read as people are posting links to corroborating documents and websites.
Leave a comment