Overview
Client: Town of Chestertown, Maryland
Project partners: Maryland Energy Administration, Maryland Clean Energy Center
Projects: 2.2 MW town-owned solar: 1.2 MW for town operations, 1 MW community solar
Summary: GreenGen partnered with the town and state agencies to turn clean energy goals into an executed, financeable project that advances near net-zero town electric operations and affordable clean energy for residents.s
Background
GreenGen is developing a 2.2-megawatt municipal solar project, owned and operated by the Town of Chestertown, Maryland. The project pairs a 1.2 MW array for municipal facilities with a 1 MW community solar array that provides discounted electricity to residents, including a dedicated allotment for low- and moderate-income households.
Developed through a model municipal partnership, the project is scheduled to be operational in CY 2027. Chestertown expects combined financial benefits of about $400,000 per year, reducing pressure on local tax rates while protecting the community against future energy price volatility. Households enrolled in the community solar program can expect annual electricity cost savings of 10-20% with expanded access to clean energy.
Challenge
Limited budgets and lean staff make it difficult for small towns to fund, finance, and manage a project of this scale. Chestertown needed a structure that would:
- Keep ownership, and every dollar of savings, within the community
- Reduce upfront cost through available state and federal funding
- Secure financing on terms a small municipality could support
- Lower the cost of municipal operations that residents fund directly through local taxes
Solution
A Model Municipal Partnership
GreenGen worked alongside public partners to assemble an ownership and funding structure that makes the project value-accretive for the town. Each partner contributed a distinct piece:
| Project Partner | Contribution |
|---|---|
| Town of Chestertown | Project owner, retaining long-term savings for town operations and residents |
| GreenGen | Project implementation partner, turning the town’s goals into a financeable project |
| Maryland Energy Administration | $1 million grant through the Local Government Energy Modification (L-GEM) program |
| Maryland Clean Energy Center | Low-cost financing through the Maryland Clean Energy Capital municipal bond |
| Federal Incentives | $1.35 million investment tax credit, further reducing net project cost |
A Repeatable Process for Cities and Towns
01
Align on Community Goals
Define town energy needs and resident benefits.
02
Retain Municipal Ownership
Keep long-term savings in the community.
03
Stack Public Funding
Combine available grants and incentives to cut net costs.
04
Access Low-Cost Capital
Finance the balance through state bond programs.
05
Share the Benefits
Add community solar to provide savings to LMI households.
Results
- ~$400,000 in expected combined annual financial benefits
- Positive cash flow for the town over the project’s 25+ year life
- 10-20% annual electricity cost savings for households enrolled in community solar, with expanded access to clean energy
- Power for 200-250 local households, including a dedicated allotment for low- and moderate-income households
- Reduced pressure on local tax rates and protection against future energy price volatility
- ~1,300 metric tons of annual greenhouse gas emissions eliminated, equal to nearly 3.3 million vehicle miles per year
- $2.35 million in combined grant and tax credit value
Figures are projections; the project is expected to be operational in CY 2027.
“Chestertown is proving that small towns can be clean energy leaders. By advancing our path to net-zero and keeping this project municipally owned, we’re ensuring that every dollar of savings strengthens our community.”
Meghan Efland · Chestertown Mayor
Interested in working with the GreenGen team? Reach out to us!