The Whitmell solar project on Irish Road in Pittsylvania County should be starting up and providing power this week for Danville Utilities, while the one in Ringgold will begin operating within a month.
"Irish Road should be operational later this week," said Danville Utilities Director Jason Grey. "All the testing has been completed."
As for the Ringgold project, it's "a good month away before we can start generating electricity at that site," Grey said Monday.
The Ringgold project was delayed by the COVID-19 pandemic when panels that were supposed to arrive in March did not come until May and June, Grey said. Also, wet weather has pushed back construction, he said.
In addition, testing must still be done at the site to ensure it's able to generate the amount of power it's set to produce, Grey said.
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Testing is complete at the Whitmell site and city officials are reviewing the results, Grey said.
Using locally generated solar power results in savings on transmission costs for ratepayers, said Danville City Manager Ken Larking, who also serves on the Danville Utility Commission.
"If we are purchasing peak power from a plan outside our territory, we have to pay for delivery," Larking said. "That cost doesn't exist anymore."
The solar farms in Whitmell and Ringgold will generate about 50,000 megawatt-hours of electricity per year combined — enough energy to power about 3,000 homes annually, Grey said. That will be about 5% of Danville Utilities' energy load.
Vice Mayor Gary Miller, who also serves on the utility commission representing Danville City Council, said transmission fees make up about 28% to 30% of the electric portion of a customer's utilities bill.
"There's no transmission charge," Miller said of using locally generated solar power. "That's a big benefit for our ratepayers, and this is clean energy and the way of the future. The more solar power we can produce, the better."
The Whitmell project at 7480 Irish Road is 10 megawatts and the Ringgold project on the former Ringgold Golf Course along Ringgold Road is 12 megawatts.
The Whitmell site will be owned and operated by Navisun in New Canaan, Connecticut, and Scottsdale, Arizona-based Arevon Energy will own and operate the Ringgold site.
Danville Utilities has 25-year purchase power agreements with the companies.
When combined with the Kentuck solar project, which is currently the only operational solar facility in Pittsylvania County under Danville Utilities, they will generate 8% of the power needed by Danville Utilities.
The 76-acre Kentuck solar farm, located at 2048 Kentuck Church Road, is contracted to sell all the megawatts it produces to Danville Utilities for 25 years.
As for the agreement with Navisun, the city will pay about $1.1 million per year, or $47 per megawatt-hour for about 24,000 megawatt hours per year, Grey said.
In its contract with Arevon, the city will pay $57 per megawatt-hour the first year, with the rate decreasing 2.5% every year, Grey said. The city will pay about $1.4 million the first year and about $910,000 the final year, when the contracted rate per megawatt-hour will be about $35.