Claresholm Town Council is making progress on the Arena Solar Project, with a possible debenture of $310,000 to fund the project’s remaining balance.
In April, council awarded the Arena Solar Project to D-Com Energy Solutions.
“They've been doing some structural design elements and working on getting engineers' approvals for the actual install,” said Abe Tinney, Town of Claresholm Chief Administrative Officer (CAO).
Since approval, D-Com Energy Solutions has finalized contract pricing for the project at $473,575.
To help offset the cost, the town was successful in receiving a provincial grant application through the Municipal Climate Change Action Centre (MCCAC) Partnership Program.
However, the grant only covers 30 per cent of the project cost.
As a first-time applicant for the program, the town was eligible for an additional $58,536 of funding, reducing the town’s financial contribution to $272,966.
“In total, the project is 42 per cent covered by grants,” Tinney said. “The town does need to come up with the remaining 58 per cent.”
As a result, town administration proposed to implement a borrowing bylaw through the province’s Loans to Local Authorities program, with a 10-year debenture.
Tinney explained that the annual principal and interest payment would be approximately $33,002.
“The project is expected to start generating credit by the end of year six, meaning that savings will exceed the annual loan payment at that point and the credits will aid in reducing the town's annual budget requirement,” he said.