Solar developer requests PILOT agreement

Sep 7, 2016

On Tuesday night, Clean Energy Collective, the developer of a solar project on Tucker Lane asked the Board of Selectmen to enter into a PILOT agreement.

A PILOT agreement, which stands for payment in lieu of taxes, is common among solar projects in Massachusetts.

“Of the solar farms across the Commonwealth, about ninety-five percent of them do end up in these agreements,” Town Administrator Paul Dawson said.

The agreement is essentially a way for the company to stabilize taxes over the term of the solar agreement with the town.

Dawson emphasized to the board that this would not mean any reduction in taxes, and that the payment would be calculated by the Board of Assessors based on the value of the property, as is the normal procedure. The assessors would figure out what taxes would be like on a regular basis for the property, including any anticipated or scheduled increases, and would come up with a similar payment over time.

“This is not an unusual request,” Dawson said. “It would all be paid over the life of the agreement. It just makes it more palatable for the developers.”

The developers suggested the agreement take place over 25 years, but Dawson said perhaps the town would suggest 20 years instead. The assessors are currently working on a possible plan.

The Selectmen agreed to the assessors coming up with a PILOT plan, and it will be voted on at the Fall Town Meeting on Oct. 24.