The developer behind a proposed 70-megawatt solar farm in Trenton is asking the town to cut its tax bill in half, the Ellsworth American reported.
At a presentation to the town select board on Tuesday, an attorney for Maryland-based SynerGen Solar explained the proposal, which would involve the town placing the solar farm in a tax increment financing, or TIF, zone, according to the American.
A TIF allows a municipality to shelter property tax revenue from the state’s education funding and revenue sharing formulas. Towns can use the money for a limited range of approved municipal projects or share some of the revenue with the property owner in what is called a credit enhancement TIF. This arrangement, which amounts to a tax break, is often used as an incentive to bring in new businesses.
SynerGen’s attorney proposed a 50/50 split between the solar developer and the town, according to the Ellsworth American.
The American reported the estimated tax revenue from the solar farm in its first year, fiscal year 2024-2025, would be $691,962, of which the town would receive half under the SynerGen proposal. In subsequent years, the tax revenue would decrease because the solar panels would depreciate in value. Tax revenue in year seven was estimated at $230,654.
If built, the solar farm would require clearing 300 acres of a 900-acre wooded parcel behind the industrial park, the American reported. The 70-megawatt rating would be close to the 76-megawatt facility in Farmington owned by Florida-based NextEra Energy, which was the largest in Maine when it opened in 2021. Boston-based Longroad Energy broke ground last year on a 132-megawatt solar farm in Kennebec County tha will be the largest in Maine.