Sun Chief Solar could be the first solar project to break ground in Jay County.

Jay County Council amended its economic development agreement and tax abatement Wednesday with Scout Clean Energy for the company’s proposed 100-megawatt facility northeast of Redkey.

Sun Chief Solar, to be located on approximately 1,200 acres near Scout Clean Energy’s Bitter Ridge Wind Farm, first moved through Jay County governmental proceedings about three years ago.

Like other prospective solar farms — in Jay County, they include Skycrest Solar planned in Penn and Jackson townships, Rose Gold Solar planned north of Dunkirk and New Jay Solar planned east of Dunkirk — Sun Chief has been working through the regional transmission organization PJM interconnection’s process. Energy companies across the country are experiencing delays amid the process, said Scout Clean Energy east region associate project manager Spencer Micali.

In April 2022, PJM Interconnection announced plans to revamp its analysis process for new electricity services joining the power grid, leading to delays for project studies and approvals. Projects have been divided into three queues, and Sun Chief Solar’s application has been sorted into the “fast track.”

Scout Clean Energy expects to receive confirmation of PJM Interconnection’s study analysis by Sunday.

The proposed timeline for Sun Chief also anticipates an interconnection service agreement to be in place by May 15, with construction to follow in June. Hopes are to have the solar farm operational by summer 2026.

Despite other prospective solar farms in Jay County starting the process sooner, noted Micali, Sun Chief could be the first among them to begin construction.

Scout requested a two-year extension to the timeline in its economic development agreement and 10-year tax abatement with the county, stipulating construction must begin no later than Dec. 31, 2026, with the work to be completed no later than Dec. 31, 2027.

Scout will save about $3.8 million in property taxes with its 10-year tax abatement approved in November 2021. The company will provide about $1.3 million in economic development payments to the county, and its facility is projected to result in additional $38.9 million in assessed value. It is projected to generate more than $24 million in property taxes over its 35-year life.

Per the updated economic development agreement, the company has also agreed to provide the county its first economic development payment no later than six months following the start of construction. (Previously, the first payment was due no later than 15 days after commercial operations begin.)

Council member Harold Towell noted prospective solar projects in Jay County have been delayed several times over the last few years. He asked what the county and residents will get out of the delays.

County attorney Wes Schemenaur explained the first economic development payment will come in potentially next December, which is around the same time it would have been received with Sun Chief’s previous timeline. He and Micali noted the changes were made to avoid reopening negotiations.

Council approved the amendments on a 3-1 vote with Towell dissenting. Jeanne Houchins and Randy May were absent from the meeting.

Also, council agreed to move forward with advertising a rate change for local income taxes in 2025.

County auditor Emily Franks suggested decreasing the levy freeze rate by 0.05% and increasing the public safety rate by up to 0.1% to account for the addition of three new correctional officer positions at Jay County Jail next year. Council agreed to move forward with the change, which will be formally voted on by October.
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