‘Morris Model’ solar financing shines

Feb 24, 2011 by Candace Lombardi

In the last eight months, Morris County, N.J., has undergone a significant energy change of which many of its residents are probably not even aware.

The partners involved call it the “Morris Model.” It’s a new financing model that allows municipalities to partner with solar-energy companies to incorporate solar energy into their energy portfolio for little outlay.

In June the Morris County Improvement Authority (MCIA) announced it was entering into this Morris Model financing plan with Tioga Energy and SunDurance Energy to install about 3-megawatts worth of solar panels by offering up something it already had: property.

Mennen Arena's solar carport. (Credit: Tioga Energy)

Yesterday, the MCIA and Tioga Energy announced Morris County’s solar installation was complete and, so far, a financial success.

While there are many property-for-discount-energy programs going on, this one is unique.

Specifically, the MCIA issued $22.3 million in low-interest government bonds to cover the cost of the initial installation. Tioga Energy–the solar-energy company that owns and operates the systems, and sells the solar electricity back to the municipality–used federal income tax incentives unavailable to municipalities, and New Jersey’s Solar Renewable Energy Certificates (SREC) program to cover more of the costs. As part of the agreement, Tioga Energy then passed the money it earned from the incentives and SRECs on to Morris County in the form of discounted electricity. SunDurance Energy, working in conjunction with Tioga Energy, designed and installed the solar-energy system configurations for each property.

The pilot program’s swift eight-month completion is a test case that could offer a win-win solution for both cash-strapped municipalities and solar-energy companies looking for business. Keep in mind, however, that this Morris Model would only work in….

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