PILOTs for solar will now cost developers a minimum of $20,000 per-megawatt under changes to Schoharie County IDA law OKed Wednesday.
The vote wasn’t unanimous; IDA Board member Joe Trapani of Sharon Springs said he’s concerned the change will lead to solar developers challenging their property tax assessment—something that could end up being costly.
The $20,000-MW minimum will almost certainly be challenged, agreed Peter Johnson of Schoharie, another IDA Board member, who voted in favor of the change.
“We are on the frontier…” he said. “It’s inevitably going to be tested in court. The county needs to prepare itself.”
(See related story.)
On the frontier because NYSERDA—the state’s energy Research & Development arm—suggests PILOTs of $2,500 per-MW.
The Schoharie County Energy Committee has been pushing for the $20,000-MW minimum PILOT—payment in lieu of taxes, typically a tax break given in exchange for jobs—for more than a year.
Even as he celebrated the IDA vote, Energy Committee chair Don Airey said after Wednesday’s 4-1 vote that the $20,000 per-MW figure is still deeply discounted.
Solar doesn’t create any longterm jobs and is already well-compensated by state incentives, he’s said many times.
“I have a concern that $20,000 might even be too low,” Mr. AIrey said, “but I think it may also be the sweet spot between what’s fair to taxpayers and developers.
“This has never been about being ‘against solar,’ but about what’s fair.”
Under the changes approved Wednesday, there’s a maximum of 20 years for solar PILOTs with the $20,000-MW minimum in place for all 20.
Initially, the minimum applied only to Years 1-10.
But sharing some of Mr. Trapani’s concerns, IDA Board member Ben Oevering of Schoharie said that could lead to developers fighting a project’s assessed value over things like depreciation.
Beginning in Year 11, there will also be a three percent annual “inflation increase” in PILOT payments.
The PILOT will be split evenly three ways between the county and the town and school district the project’s located in—though the three are free to negotiate a different distribution.
Mr. Trapani, the only board member to vote against the changes, argued the IDA has an obligation to speak for everyone—including other “stakeholders” and businesses.
While acknowledging that there are some landowners who see solar as an opportunity for a steady source of revenue, Mr. Johnson disagreed, estimating 95 percent of the county is in favor of $20,000-MW minimum.
Even as he applauded the IDA’s decision, Mr. Airey said this is just the beginning for the Energy Committee. He expects wind and hydro to quickly become a bigger part of PILOT discussions.
And he criticized NYSERDA and the state for “being absolutely no help” in helping upstate communities negotiate them.
“The playing field is so uneven…” he said. “I think we did our job [with the solar PILOT]. Local government did its job. But we did it on our own.
“Never once did anyone from the state call us and ask ‘What do you need?’ That’s not going to change as these energy issues continue.”

SEE RELATED STORY IN THIS WEEK'S t-j.