Decommissioning
Loblolly Solar will power up to 44,000 local homes with safe, clean energy. In doing so, we make a commitment to the community to safely operate and maintain the solar farm for its useful life, 35 years. To reinforce our promise, we have developed a Decommissioning Plan which defines how the solar farm will be removed, returning the land to its former state. You never have to worry about being left with an unmaintained or abandoned solar farm in your neighborhood.
Prior to obtaining building permits and commencing construction, Loblolly Solar will be required to provide Surry County an estimate of the cost to decommission the Project (the “Decommissioning Cost Estimate”) prepared by a Virginia Licensed Engineer. The Decommissioning Cost Estimate will be professionally reviewed every five years and updated as needed. Prior to operation, Loblolly Solar will provide security in the amount of the Decommissioning Cost Estimate in accordance with Va. Code § 15.2-2241.2. The security will be posted in the form of a cash escrow, a performance surety bond, a certified check, an irrevocable letter of credit, parent guarantee, or other security acceptable to the county in an amount equal to the Decommissioning Cost Estimate. The security will remain valid until the decommissioning obligations have been met.
The security will be in favor of Surry County and shall be obtained and delivered to the county before any construction commences. This means that if Loblolly Solar ever ceases to operate, there are funds available to the County in an amount that will fully cover the cost of decommissioning. You’ll never be left with an abandoned project in your community.
We are prepared for the future
Why are we talking about dismantling Loblolly Solar when it hasn’t yet been built? As a responsibly managed project, the full lifecycle of Loblolly Solar has been taken into consideration, even its retirement. While solar panel technology — the same used on homes, churches, and schools across Virginia — has proven to be highly dependable over the last 4 decades, we also know it slowly degrades in power production. It’s not much: 35 years after installation, Loblolly Solar panels will still be producing 82.5% of its original capacity, decreasing at a linear rate of just 0.5% per year.
In fact, the dependable, long term performance is just one of several factors that drive the success of solar farms. Solar panels come with a manufacturer’s warranty of at least 25 years. Because they are completely sealed, waterproof, and have no moving parts, individual solar panels fail at a very low rate, roughly 5 out of 10,000 per year. Monitored remotely, defective panels are easily replaced from inventory stores.
What’s more, Loblolly Solar will have a Power Purchase Agreement (PPA). Among other things, the legally binding, long-term contract obligates us to deliver an agreed amount of power each year, for the duration of the contract (typically 20-25 years), or face penalties for non-delivery. Finally, Loblolly Solar will carry insurance covering the entirety of the facility against unforeseen events. Similar insurance allowed the Humacao Solar Farm in Puerto Rico to be completely and quickly repaired following damage caused by the Category 5 Hurricane María.
Still, good things can’t last forever. Regardless of the long lifetime of solar panels, PPA obligations, and insurance, Loblolly Solar will eventually come to the end of its useful life. As committed members of this community, our Decommissioning Plan is blueprinted and secured with funds to make sure the project is successfully decommissioned and the land is restored and ready for its next use.
A closer look at the plan
Generally speaking, decommissioning is identical to construction, but in reverse order. After transporting the solar panels offsite they will be dismantled, and metals, glass, and silicon will be recycled or sold as scrap. Under current market conditions, the revenue from salvaging valuable materials, particularly the copper wiring connecting all solar panels, is found to more than cover the removal and transportation costs of all materials on site.
Decommissioning will be enforced at the end of Loblolly Solar’s lifespan or even sooner if failure to repair or remove unsafe structures, discontinuance of operations, or abandonment of the project (in whole or in part) occurs. This will be determined by the county building official. Once the project equipment has been removed from the site, the property will be completely restored.
There is a lot motivating Loblolly Solar to safely operate for the lifetime of the project. The integrity and long life of modern solar panels, the contractual PPA framework, insurance, and nature of a revenue-producing asset all ensure that Loblolly Solar will be carefully maintained throughout the life of the project. When the time comes to remove all system components, there is a plan and funds in place – approved by the county and periodically reviewed and updated – that guarantees we will take good care of the community. As your newest neighbors, we look forward to forging valuable relationships and providing our area with safe, clean energy.
