Scout agreement updated

Sun Chief Solar is working through the process to amend its project timeline.

Jay County Commissioners on Monday approved amendments to the economic development agreement with Scout Clean Energy for its Sun Chief Solar project.

Most notably, the updated agreement includes a two-year extension on the proposed timeline for Scout Clean Energy to begin construction and start operations and requires the company to provide its first economic development payment before construction is completed.

Scout’s plans call for a 100-megawatt facility northeast of Redkey. Located on approximately 1,200 acres near the company’s Bitter Ridge Wind Farm, Sun Chief Solar first moved through Jay County governmental proceedings about three years ago.

Scout is estimated to save about $3.8 million in property taxes with its 10-year tax abatement approved by the county in November 2021. The company will provide about $1.3 million in economic development payments to the county over four years, 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.

Scout Clean Energy east region associate project manager Spencer Micali noted Monday construction on the project will include between 100 and 150 workers. Once operational, Sun Chief Solar will have up to two permanent employees on site for general maintenance.

Sun Chief has been working through regional transmission organization PJM Interconnection’s process for hooking up to the electrical grid. Similar to other prospective 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 impacted by delays amid the PJM process. PJM announced plans in April 2022 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 was sorted into the “fast track” Sept. 13. (Because of this, Micali pointed out, Sun Chief could be the first among the Jay County solar farm projects to begin construction.)

Hopes are for Sun Chief to secure its interconnection service agreement by the end of this year, noted Micali. Construction would begin in June, with commercial operations to start just over a year later.

Per the new agreement timeline, Scout must begin construction on the facility no later than Dec. 31, 2026, with completion set for no later than Dec. 31, 2027.

“We’re asking for an extra year, that’s simply out of an abundance of caution,” said Micali. “(We) don’t want to have to, you know, come back to the well, take another bite of the apple, do this process again.”

Also, per the updated agreement, the company will 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.)

“It essentially puts the EDA payments within a couple of months of … when they would have come in originally,” said county attorney Wes Schemenaur. “This essentially allows the county to start receiving those payments almost on track with what would’ve come in under the old agreement.”

Jay County Council approved the amended agreement with Harold Towell dissenting and Jeanne Houchins and Randy May absent on Sept. 11. It also approved updating the timeline in the tax abatement.

Next steps in coming months for Sun Chief include formally requesting to amend the project’s timeline with Jay County Plan Commission and to provide affiliated landowners with a summary of the changes.