Bakersfield approves $8m solar-and-storage project for water system

Bakersfield approves $8m solar-and-storage project for water systemThe City Council approved a revised energy savings performance contract with Willdan Energy Solutions for the Municipal Water Enterprise Fund’s 1000 Buena Vista Road facility. The city says the scheme could deliver first-year electricity savings of about $382,000 while preserving eligibility for up to $3.5 million in federal incentives.

Council approved a contract with Willdan Energy Solutions not to exceed $7,990,188 for solar photovoltaic and battery-storage infrastructure at 1000 Buena Vista Road.

The project serves a water facility containing a major tank site, booster pumps and treatment equipment that operates around the clock to supply drinking water.

The city removed EV-charging and related infrastructure from the scope, cutting the project’s first cost by $1.2 million.

Staff said $1.5 million in battery incentives is secured, while nearly $2 million in solar incentives is available if the solar system is energised by 31 December 2027.

The project is funded through the Municipal Water Enterprise Fund’s already approved capital programme, rather than the general fund.

Bakersfield City Council has approved a solar photovoltaic and battery-storage project for a key municipal water facility, authorising an energy savings performance contract with Willdan Energy Solutions worth up to $7.99 million. The project will be installed at the city’s 1000 Buena Vista Road site, which Water Director Daniel Maldonado described as one of the utility’s largest tank sites. The facility receives water from wells on the west side of Bakersfield, treats it for human consumption and uses booster pumps running 24 hours a day to move water into the distribution system. The scheme is intended to reduce the Municipal Water Enterprise Fund’s exposure to electricity costs. Staff put first-year savings at approximately $382,000 and projected nearly $10.4 million in electricity-budget savings between 2027 and 2041. Those figures use an assumed annual utility-cost escalation of 8%, although staff said the project’s 25-year cash-flow analysis used a more conservative 5% escalation assumption. Maldonado told the council that electricity costs at the Buena Vista site alone were expected to reach about $682,000 in 2027 without the project. Under the city’s cited 8% escalation scenario, annual charges would exceed $2 million by 2041. The council considered a reduced scope from the version previously presented. EV chargers and associated infrastructure have been removed and will instead proceed through a separate citywide EV effort. The scope change cut the initial project cost by $1.2 million, according to staff. The contract uses a guaranteed maximum price structure, meaning Willdan cannot exceed the authorised amount unless the city directs change orders. Any unused contingency or allowance funding would return to the Water Enterprise Fund, Maldonado said. The city estimates a net water-department cost of $4.4 million if it obtains $3.5 million in incentives: $1.5 million for the battery system has been secured, while nearly $2 million in federal investment tax credits is potentially available for the solar component. Staff said the solar system must be energised by 31 December 2027 to secure the latter funding. On the city’s assumptions, the energy elements have a 9.5-year payback if all incentives are received, or 14.6 years if the deadline is missed. Councilmember Koman, who had opposed an earlier version on payback grounds, backed the revised project, saying the updated range was materially better than the earlier forecast. City staff said the project had already been programmed in the water utility’s capital improvement plan, incorporated into the 2025 supplemental rate study and approved through the Proposition 218 process. No additional funding was requested.