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Nellis Solar Power Plant

Solar park in Nevada, US

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Through Watt and Solar panel

The peak power generation capacity of the plant is 15 MWAC. This means the ratio of average to peak output, or capacity factor, of this plant is around 22%.

Construction began on April 23, 2007, and operation of the first 5 MW began on October 12, 2007.

Economics

Under the terms of the Power Purchase Agreement, MMA Renewable Ventures, who own the panels, is leasing the land at no cost and Nellis is agreeing to buy the power for 20 years at about 2.2 cents/kW·h, instead of the 9 cents they are paying to Nevada Power, saving the Air Force $1 million each year. None of the $100 million cost came from the Air Force, but instead MMA "funds, owns and operates the solar energy system and sells the electricity generated to the energy customer through a predictable, long term contract."

The partners were able to build the plant, recover costs and produce electricity at a savings, because of the fairly complex financing structure arranged among MMA, its investors, Nevada Power, and Nellis — in addition to the value of solar tax incentives.

The plant was expected to produce 30 GWh per year but actually produced about 32 GWh the first year, 8% more than expected, saving the Air Force $1.2 million in the first year of operation.

Gaining the most resilience benefit from a solar installation requires adding a Battery energy storage system to retain power when the solar array is not producing and ideally a Microgrid to allow independent operation from the electric grid during a power outage. For this reason, Nellis announced a battery storage and microgrid project in 2022 to complement its solar array.

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