Schools, correctional facilities and municipal buildings in some of the poorest neighborhoods in Denver and Pueblo are going to power up with solar energy under an $18 million private finance program.
The 33 solar arrays are being installed and operated by Boulder-based Main Street Power using state and federal incentives.
Arrays are also being installed in two correctional facilities: one in Cañon City and one in Crowley.
The 35 units will generate a total of 2.8 megawatts of power, with each unit generating about 100 kilowatts.
Many solar projects use state renewable-energy credits, given through utility companies, and federal investment tax credits — but by locating projects in poor areas, Main Street is adding federal development tax credits as well.
“It is something a little different,” said Amory Host, Main Street’s chief executive. “It is renewable energy and economic development.”
Main Street, which was founded about two years ago, is tapping into the New Markets Tax Credit, which goes to “distressed” neighborhoods or low-income neighborhoods.
“A goal is job creation, and we are working with the Denver economic-development office,” Host said, noting that the aim is for people coming out of training programs to be hired on to projects.
Some of the solar units are going on Denver Public Schools. Main Street has worked with the school district to develop a solar-energy curriculum for all grades and is providing teachers with teaching materials.
“We’ve been looking to solar power, and this provided an opportunity for low-price electricity and a jobs program,” said Scott Morrisey, deputy director of Greenprint Denver, the city’s sustainability office.
Main Street is raising the money for the units, contracting out their construction and selling the power to Denver, DPS, Pueblo County and the state Department of Corrections under 20-year contracts — at rates lower than utilities charge, according to the company and Greenprint Denver.
The solar arrays on average will cover 20 to 30 percent of each building’s energy demands, Host said.
The Boulder company raises the money for the projects by selling the tax credits to investors. “We’ve monetized the state and federal incentives,” Host said.
The use of such purchase-power agreements by municipalities is growing, said Neal Lurie, executive director of the Colorado Solar Industries Association, a trade group.
“As budgets get tighter and municipalities look to reduce costs, cutting their energy bills, which are a major expense, is one target,” Lurie said.
Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com
