Town, N.Y. firm ink deal for massive solar farm

The Holland Town Board on Monday unanimously approved a joint development agreement with Onion River Solar that paves the way for a 150-megawatt solar farm to be built on between 1,000 and 1,200 acres of what is now farmland in the northwest corner of the township.

The agreement, which was approved by the Sheboygan County Board a week earlier, is an important step forward for Ranger Power, the New York-based firm that formed Onion River LLC to develop the solar field.

When the solar farm is completed, the company plans to sell it to Alliant Energy, which will be bound by the terms of the agreement.

The agreement oversees aspects of the project not covered by the Public Service Commission, which must give overall approval to the solar field, Megan Hakes, a spokesman for Ranger Power, said.

“The joint development agreement is an important agreement to have in place. It’s a binding commitment that we will do these things,” she said. “It’s a strong commitment to be a good neighbor.”

The PSC is currently conducting a technical and environmental review of the company’s application for the solar farm, and Hakes said the agency isn’t expected to decide on the application until sometime in 2021.

The agreement covers three main categories — financial, design and process commitments.

In the agreement, Onion River Solar agrees to provide the town with $50,000 within 30 days and another $150,000 when the solar field begins to operate.

The money, Hakes said, is “like a security deposit” intended to ensure the company does what it says it will.

Onion River Solar will also provide a $1 million surety bond or letter of credit to fund its decommissioning plan and ensure the land it leases for the field will be restored at the end of the 40-year lease.

That amount will be reviewed and adjusted to reflect the estimated decommissioning costs beginning in the 20th year the solar field is in operation.

Because the project will take land off the tax rolls, the company also agrees to pay the Cedar Grove-Belgium and Oostburg school districts and Lakeshore Technical College whatever tax revenues it is losing due to its solar field each year. 

That amounts to $765 for the Cedar Grove-Belgium district, $615 for the Oostburg district, and $150 for the college, with the amount increasing by 1.5% annually.

The company will also provide the Town of Holland $250,000 annually and Sheboygan County $350,000 annually in shared revenue.

The agreement also provides for Onion River Solar to mitigate the impact of the solar farm on neighbors.

The solar field will be set back at least 150 feet from houses that are not on land being leased by the company, and at least 20 feet from property lines.

Where there are solar panels on two or more sides of a neighboring property, the setbacks increase to 200 feet and 50 feet, respectively.

The agreement calls for grasses and flowering plants to be planted around the facility with grasses under and between rows of panels. The panels can be no higher than 14 feet, and they must be positioned to minimize glare.

Deer fences will be placed around the solar equipment areas, and the design will take into account wildlife in the area, the agreement states. There will be openings in fences for smaller animals and areas where larger animals such as deer can cross or walk through.

The agreement also calls for the town to have a process in place to share plans and construction schedules, and a process to address concerns about the construction and operation of the field.

A process to inspect and maintain roads affected by the project and drainage systems in the area must also be established, the agreement states.

Ranger Power has submitted plans for the solar farm to the Public Service Commission for review, a process that could take a year to complete. The PSC will hold public hearings on the project as part of its review.

Ranger Power has 40-year rental agreements for almost 1,900 acres owned by 13 property owners. The solar farm will only use about 1,000 acres, with the remaining land returned to landowners.

If the PSC approved the project, it is expected to take 12 to 18 months to build the solar farm, Hakes said.