USDA Approves Solar Project for Iron Horse Business & Industry Park

The U.S. Department of Agriculture in May approved PCDC’s application to proceed with the Iron Horse Solar project, a proposed 11-acre solar farm to be built on undevelopable land in the Iron Horse Business & Industry Park west of Holdrege.

“Initially, we were simply looking for a way to maximize the use of our property, and this parcel couldn’t be developed for other purposes,” PCDC Executive Director Ron Tillery said. “After exploring the options for this site, we came to the conclusion that potential for adding solar energy generation was a good fit, and it would enhance the appeal of PCDC’s industrial park.”

Tillery said that inflation will drive up the cost of power over time, but once the electricity rate is established with this solar farm, rates will be frozen for 30 years. PCDC plans to sell electricity generated from Iron Horse Solar to the City of Holdrege at or below the price the city pays to NPPD for power. An NPPD policy limits the amount of power the city can purchase to 10 percent of its total daily community demand from the solar farm, or about 2.5 megawatts. 

In addition to helping with local electricity demand, the Iron Horse Solar farm will generate renewable energy credits, which are attractive to corporations interested in achieving net-zero emissions of greenhouse gases. Purchasing energy credits generated by solar farms helps companies comply with environmental regulations.

“What we hope to do is leverage PCDC’s work to develop the system to enhance our capability as an economic development organization; the system is attractive to a broad range of potential buyers once it’s completed,” Tillery said. 

Tillery said the solar farm will cost an estimated $4.5 million, and PCDC has applied for and secured a low-interest loan through the USDA’s Rural Utility Service to help fund the project. The interest could be as low as 0 percent on the loan, and 20 percent of the loan is forgivable once the “switch is flipped on.” The operating entity will have an immediate equity position in the project, a very attractive proposition.”

PCDC has partnered with Olsson on project civil engineering and GenPro Energy Solutions of Piedmont, SD, on design and technical engineering of the solar farm. GenPro works with businesses, municipalities, utilities, and government entities on energy-efficient lighting systems and utility-grade solar energy farms. 

Molly Brown, GenPro’s Developer on the Phelps County project, said GenPro has pioneered municipal solar in Nebraska starting with the first municipal utility solar project for the City of Lexington.

“Our work is primarily with other NPPD wholesale communities similar to Holdrege including Cozad, Gothenburg, Central City, Wahoo, Schuyler and others,” Brown said. 

Solar projects benefit cities by providing energy and reducing transmission and capacity charges. It also helps with economic development.

“For economic development, communities are using solar production to attract new businesses,” Brown said. “Many corporations have sustainability goals, and whether a community has adopted renewable energy can determine where they decide to bring their business.”

GenPro is currently still working through the application process with the USDA’s PACE program. Iron Horse Solar will be located on 11 acres near the gateway to the Iron Horse Business & Industry Park near 11th Avenue and Gustin Street.