“It’s great to be first in the nation,” Scenic Hill Solar CEO Bill Halter said after landing $31.8 million in financing for a network of solar plants that will power the entire University of Arkansas System.
This morning, Climate United of Bethesda, Maryland, announced the pre-construction loan for what Halter called a groundbreaking project that will benefit the entire state. The 18 solar arrays, totaling 66 megawatts of capacity, are expected to save the university system more than $120 million for electricity over 25 years, benefiting 70,000 students and 17,000 employees.
It will be by far the largest commercial and industrial solar project in Arkansas history, Halter said. And the funding represents Climate United’s first investment from the $6.97 billion it received from the U.S. Environmental Protection Agency’s National Clean Investment Fund.
“Climate United is the first green bank, as they are called, to get a loan out, and Scenic Hill was the recipient of that first loan,” Halter said.
The 18 arrays will be in 13 different utility service areas, including Entergy Arkansas, SWEPCO, OG&E, municipal utilities in North Little Rock and Hope, and several electric cooperatives.
The arrays qualify as legacy projects under the net-metering policy that faced a Sept. 30 deadline. Thus the UA System will reap a credit for excess power created that equals the rate the utilities charge for retail electricity.
“When you do net metering, the facility has to be located in the same utility service territory as the load,” Halter said. “The power plants for the University of Arkansas at Fort Smith have to be in the OG&E service territory. Likewise, the Fayetteville campus is served by SWEPCO, whereas Pulaski Tech and UALR are served by Entergy.”
The project covers all of the campuses of the University of Arkansas System across the state.
“Our partnership with Scenic Hill Solar represents Climate United’s commitment to investing in communities across the country, including throughout rural America,” Beth Stafford, Climate United’s CEO, said in a statement. “We are proud to finance this landmark clean energy project that will generate cost savings that benefit students, stimulate local economic development and position Arkansas as a leader in our clean energy future.”
Halter said the project will use equipment from American manufacturers and will provide more than $120 million in direct economic development across all the state. Hundreds of electricians, civil contractors and construction workers will contribute.
The UA System has begun educational and workforce development programs in renewable energy construction and EC repair to educate workers for “these growing sectors,” a news release said.
“The UA System is proud to be a leader in the clean energy transition,” UA System President Donald R. Bobbitt said in the release. He said the partnership with Scenic Hill and Climate United will help “the premiere university system in Arkansas” significantly reduce its energy costs, with the savings helping the system “to continue to deliver world-class education to students and make larger impacts overall on our campuses, divisions and units.”
Solar tech components built by American workers will go into the arrays, representing Scenic Hill’s commitment to an initiative called the “American Made, Arkansas Built” initiative. Halter said the initiative increases American energy independence, strengthens the U.S. supply chain and “offers Scenic Hill Solar power plants as locations for first deployments of new American products” and technologies.
“This is a historic moment for solar development in Arkansas,” Halter said in the release. “It’s a great day for Arkansans.” He said the Climate United investment is filling a national gap in financing mechanisms. “We look forward to future opportunities with Climate United to accelerate deployment of solar power and batteries, power the Arkansas economy, enhance national security and strengthen American manufacturing.”
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