Jun 11 2008
Clear Skies Solar, Inc., a leading provider of turnkey solar electricity installations and renewable energy solutions, announced today the purchase of 34 acres of land in Cantil, California - the future site of a $44 million 8MW solar farm. Clear Skies Solar is slated to close on the land contract on June 14, taking full title of the property at that time.
Along with project development partner California Sunrise, Clear Skies Solar purchased the Cantil property from a private land holder. The 34-acre farm will produce electricity that will be sold under a legal contract known as a Power Purchase Agreement (PPA), between Clear Skies Solar and the local utility company. Under this contract, the electricity produced at the farm will be sold for 20 years to the utility company at approximately $0.12 per kWh escalating at approximately 1% per annum.
“Clear Skies Solar’s solar farm in Cantil, California is just the beginning of several large utility scale projects we’re developing and executing around the globe,” said Ezra Green, Chief Executive Officer and Chairman of Clear Skies Solar. He continues, “It’s become quite clear, particularly in recent months with the price of crude oil reaching record-breaking prices, that our world is looking towards renewable energy as a solution to this global fuel crisis. Through the development of these strategic solar farms, Clear Skies Solar is hoping to alleviate this tension and expand our business to become a world leader in turnkey solar electricity installations.”
Clear Skies Solar will manage the Cantil, California property for the next 20 years and expects to see recurring revenue from this management arrangement. The environmental impact study has been completed and has found no evidence of protected desert wildlife which is the main environmental issue that has the potential to hinder a deal such as this. The attractive aspect of this property is its proximity to the utility substation. Although there are many undeveloped desert areas in California that initially look ideally suited for a solar farm, there are few locations close enough to a utility substation to make the economics of a solar farm project feasible. In this regard, the Cantil property is truly unique.