By Barbara A. Preston for The Montgomery News
| March 19, 2026
Montgomery Township officials are reviewing a recommendation from consultant Adam Taylor, president and CEO of Talva Energy, to install a large, remote net-metered solar array on township-owned property.
Taylor gave a lengthy presentation regarding “where and how solar energy could make sense” at the March 5 Township Committee meeting. He zeroed-in on the Montgomery Township municipal complex at the corner of Orchard Road and Route 206
“Here is what we zeroed-in on,” Taylor said. “It’s large, and it offsets a lot of electricity in town. … After looking at a lot of potential projects … and after running all the numbers, we suggest this to be the most feasible and beneficial for the township.
The proposed system for the Montgomery Township municipal complex on the corner of Orchard Road and Route 206 includes two large ground arrays and carports situated primarily over the police department's parking lot and to the rear of the municipal building, near where the new low-income senior citizen housing is being built. This large array is designed to be a remote net-metered system, a program exclusively available to New Jersey public entities, which allows the energy generated at one site to offset electricity charges on any other township-owned accounts, according to Taylor.
The Montgomery Township Municipal Complex, located on Route 206, features modern, sustainable design elements that include solar energy capabilities as part of the township's broader green energy initiatives. The new municipal center, which opened in 2022, was designed with a focus on environmental sustainability, incorporating the ability to install solar panels on its rooftop, according to DM Architects, who designed the building.
Taylor advised against the township owning and operating smaller arrays on site, such as the municipal building roof or pump stations, due to circuit constraints imposed by the utility, PSE&G (Public Service Electric and Gas). The municipal facility is on a "red circuit," which limits the amount of solar capacity it can handle and its ability to export electricity back to the grid.
Non-Export Restriction: A recent development from the BPU/New Jersey Clean Energy Program prevents sites with a non-export requirement from collecting SRECs. This constraint means that while a smaller system could be installed to consume energy on-site, it would miss out on the SRECs, which are a major source of revenue for paying for the project.
A township-owned, large-scale, remote net-metered array was discussed. While this option would yield a higher cumulative cash flow of approximately $7 million over 15 years, it would require the township to spend $7 million to $8 million out-of-pocket and take on the risk of meeting strict federal tax credit deadlines.
Taylor says it would be best to use a third-party developer/financier that would absorb the entire $7 million to $8 million cost of the project. The township's only out-of-pocket expenses would be consulting and legal fees associated with negotiating the contract and vetting proposals. The township would have a lower cumulative cash flow of approximately $4.8 million over 15 years.
"This means a different developer would own, operate, and sell that sell that electricity back to the township," he added. The developer would be responsible for the maintenance as well.
Advertisement
Committeeman Mike Martin said the solar array proposal has only been reviewed by a staff subcommittee so far, and this presentation marked the first look at the draft plan by both the township committee and the public.
Township Environmental Commission member Greg Kaganovich expressed disappointment during the public comment segment for the draft proposal, stating that the original municipal building design included plans for roof-mounted solar panels using government grants. He criticized the current proposal for the large arrays, fearing they would negatively impact aesthetics and create a "solar factory."
"What I see is a huge array of solar cells, acres of it, going possibly into open space areas .... ," he said. "And I don't think it's what township residents would like to see."
Taylor, the consultant, responded to concerns about using the municipal building roof:
The roof's transformer has a circuit constraint, limiting installation and preventing the collection of state incentives.
Structural engineering would be required, and the 20-year lifespan of flat membrane roofs conflicts with the 30-year solar panel warranty.
Additionally, the facilities department is concerned because the new municipal building has already experienced leaks, making the roof an uncertain site for installation.
Advertisement
Generation: The solar array is projected to produce roughly 3,868,000 kilowatt hours (kWh) annually.
Consumption Offset: This production would offset a good portion of the township's total annual consumption, which is approximately 5.5 million kWh.
Savings: The projected PPA rate is $0.05 per kWh, compared to the township's current average utility rate of 11.5 cents per kWh.
Cash Flow: The cumulative cash flow (savings) for the township is estimated at just under $5 million over the 15-year term.
In this scenario, the PPA provider takes the financial risk and absorbs all project incentives, including the federal Solar Investment Tax Credit (ITC) and state SRECs (Solar Renewable Energy Credits). The consultant noted that major developers have been buying up solar panels to "safe harbor" the ITC until the end of 2030, insulating the township from imminent deadlines.
The 15-year PPA term provides the township with three standard options:
Extend the agreement for a five-year term, potentially negotiating a lower rate.
Purchase the system at its fair market value.
Require removal by the PPA provider at no cost to the township (minus wear and tear). This third option can provide negotiation leverage, as the provider may prefer to sell the system at a reduced rate rather than incur significant removal costs.
The township committee requested a more comprehensive presentation that details all existing options—including those not recommended—and clarifications as to why some were rejected.
