Under the plans, the project will occupy six acres and will generate approximately USD$2.5 million in cost savings over the next 15 years. It is expected to be operational next spring.
According to estimates provided by the U.S. Environmental Protection Agency, the system will offset the production of more than 25,000 tons of carbon dioxide emissions over its 30-year lifetime, equivalent to removing more than 8,500 cars from New Jersey’s highways.
SunPower will design and install the solar array system, which will reportedly comprise SunPower T0 Trackers and over 3,700 solar panels. Meanwhile, ConEdison Development, a subsidiary of Consolidated Edison, Inc., plans to develop the project through an engineering, procuring and construction agreement with SunPower, and will own and operate the system. It will also own the associated solar renewable energy credits (SRECs) and environmental benefits.
In addition to its contract with SunPower, ConEdison will execute two contracts with Alcatel-Lucent. The first is a power purchase agreement under which Alcatel-Lucent agrees to purchase energy from ConEdison over a 15-year period.
Under the second contract, ConEdison leases the land for the installation from Alcatel-Lucent for 15 years. Alcatel-Lucent, which has said it assumes no upfront costs for the installation, will buy the electricity at prices considerably below retail rates in part because of a State of New Jersey incentive program that encourages development and usage of solar power.