The Lava Run Solar Project is a 450 megawatt (MW) solar and energy storage project located in the southern portion of Apache County, AZ. The project is sited immediately adjacent to the existing Springerville Generating Station, approximately 14 miles northeast of Springerville, 15 miles northeast of Eager, and 18 miles southeast of Saint Johns. The project will interconnect to the grid at the TEP owned 345 kV Springerville substation.

The Lava Run Wind Project has been under consideration by ConnectGen since early 2019 and is still in the project development phase. Since 2019, ConnectGen has been diligently studying the environmental resources within the area, performing on-site solar resource assessment, and having preliminary discussions with grazing lessees and members of the community.

The Lava Run Solar Project will provide numerous benefits to the communities of Saint Johns, Springerville, Eager, and all of Apache County. Lava Run Solar represents a total capital investment of up to $1.1 billion in Apache County, which will result in a significant increase in the County’s taxable property base. The Project will benefit the County by generating approximately $42 million in new property tax revenues while also creating jobs and increasing demand for local businesses.

During construction, the Lava Run Solar Project will contribute more than $415,000 in sales tax revenues to Apache County while supporting on average 116 construction jobs over two years. These construction workers will drive local economic development through increased demand for supply chain businesses, hospitality services, equipment rentals, and other local businesses. Once Operational, the project will generate up to 17 permanent jobs, which provide well-paying opportunities for families to work and remain in the communities surrounding the Project.

Additionally, over the course of Project Development ConnectGen will be establishing the Lava Run Solar Community Benefit Program to provide direct funding for local non-profits. This program will be established based on direct feedback from members of the community. While the Community Benefit Program is still in progress, it is anticipated that there will be funding for grassland restoration projects as well as local public safety, including emergency response services.

The Project Area, as currently contemplated, encompasses approximately 5,160 acres of both Private and Arizona State Lands. It is anticipated that infrastructure associated with the project will occupy a high percentage of the land. However, ConnectGen is committed to designing the project in a way that will preserve access to the property while also minimizing the impact to local water irrigation infrastructure.

Yes. Solar power is now one of the cheapest sources of new electricity in most of the world due to declining equipment costs, improved technologies, and public policies which support the generation and use of renewable energy.¹

In the last decade, the cost to install solar has dropped by more than 50% and has experienced an average annual growth rate of 24%.² According to Lazard’s Levelized Cost of Energy Analysis – Version 16.0 (2022), even without tax credits, new solar resources have a levelized cost of energy in the range of 2.4 cents/kWh – 9.6 cents/kWh for large-scale solar. Solar projects generate electricity at a lower cost per megawatt hour than would other possible fossil fuel and most renewable energy options.³ These results have been bolstered by the International Energy Agency’s World Energy Outlook 2021, which found, “in most markets, solar PV or wind now represents the cheapest available source of new electricity generation.”⁴

Adding to their growing appeal, solar projects are uniquely able to sell their electricity output at a fixed price over the life of the project because the “fuel” is free and not subject to increases in commodity fuel prices.⁵

Yes. Solar panel materials are enclosed with glass and an aluminum frame and do not mix with water or vaporize into the air, so there is no risk of chemicals, including greenhouse gases, being released into the environment during normal use. Crystalline silicon PV panels, which represent approximately 90% of the solar panels in use today, “do not pose a material risk of toxicity to public health and safety.”⁶

All solar facilities are designed to strict electrical safety standards to ensure safe operation. Product safety standards, installation requirements, and building codes for solar facilities are addressed by the National Fire Protection Agency’s National Electrical Code, the International Code Council’s International Fire Code, the International Association of Firefighters, and several other national, state, and local safety and product standards groups.⁷

No. To ensure decades of corrosion-free operation, solar panels are also encapsulated between two layers of transparent plastic to prevent exposure to the ambient air and moisture. These encapsulation layers are further protected with a layer of tempered glass on the front and a polymer sheet on the back. For decades, this same material has been used between layers of tempered glass to give car windshields and hurricane windows their great strength, allowing them to stay intact, even if damage occurs.⁸

No. Property value studies conducted across the country have shown that proximity to large-scale solar projects does not measurably impact property values or deter the sale of agricultural or residential land.⁹ For example:

• In 2017, the Chisago County (Minnesota) Assessor’s Office conducted their own study on property prices adjacent to and in the close vicinity of a 1,000 acre North Star solar farm in Minnesota. John Keefe, the Chisago County Assessor, concluded that the North Star solar farm had “no adverse impact” on property values. Almost all of the [Test Area] properties sold were at a price above the assessed value. He further stated that, “It seems conclusive that valuation has not suffered.¹⁰
• In 2021, Kirkland Appraisals, LLC researched solar farms in Ohio as well as other states, researched studies and articles, and talked with real estate professionals. He found no negative impact in home values due to abutting or adjoining a solar farm, as well as no negative impact to abutting or adjacent agricultural land. He also noted that some of the positive implications expressed by people living next to solar farms include protection from future residential developments or other intrusive uses, reduced dust, odor and chemicals from former farming operations, protection from light pollution at night, it’s quiet and there’s minimal traffic.¹¹
• A study of 451 solar farms in North Carolina found “no direct negative or positive spillover effect of a solar farm construction on nearby agricultural land values. Although there are no direct effects of solar farms on nearby agricultural land values, we do find evidence that suggests construction of a solar farm may create a small, positive, option-value for landowners that is capitalized into land prices. Specifically, after construction of a nearby solar farm, we find that agricultural land that is also located near transmission infrastructure may increase modestly in value.”¹²

Solar projects are low-impact and coexist well with agriculture and grazing, operating without any impact to adjacent properties. During the solar project’s 30 year or more lifespan, the land hosting the project gets a recovery period, allowing the soil to restore fertility and rebuild. Native vegetation can grow under the panels, allowing the land to retain water and topsoil and improving soil health over time, which can increase the productivity and value of the land for agriculture and grazing in the future.¹³

PV panels are designed to last more than 25 years, and many manufacturers offer performance guarantees backed by warranties.¹⁴ Like many other durable products and construction materials, solar equipment can last for decades with proper maintenance, of which they require very little due to the presence of very few, if any, moving parts.¹⁵ Proper operations and maintenance can increase efficiency, extend a project’s lifetime, and ensure safety.¹⁶ Prior to construction, we will develop and implement an Operations and Maintenance Plan based on industry best practices and site-specific environmental conditions.

ConnectGen is responsible for the decommissioning and removal of project infrastructure at the end of each project’s life. Standard decommissioning practices include dismantling and repurposing, salvaging/recycling, or disposing of wind turbine components, and site restoration.

Additionally, state, county, and local permitting authorities routinely require a decommissioning and restoration plan be put in place, which outline the various ways in which the project owner will safely and responsibly remove installed equipment and restore the property within the project area. In addition, financial securities are often required to ensure host communities will bear no responsibility for decommissioning or restoration.

Solar PV panels typically consist of glass, polymer, aluminum, copper, and semiconductor materials,¹⁷ which can be safely disposed of in landfills at the end of the project life. In addition, recycling technologies have emerged in the last several years that have enabled these materials to be recovered and recycled at the end of their useful life.¹⁸ PV solar panel recycling technologies have been put in place over the last decade that have been shown to recover over 95% of semiconductor materials and over 90% of the glass in the panel.¹⁹ In other cases, solar PV components can be reused or refurbished to have a “second life” of generating electricity.²⁰ The industry continues to work with recycling partners and to research and explore additional cost-effective recycling technologies.²¹

As the owner of the Springerville Generating Station and the associated 345 kV Springerville Substation, TEP is the transmission service provider for the project. As part of its Open Access Transmission Tarriff (OATT), TEP must study the immediate and long-term effects of putting additional generation on the grid from projects that are being developed by independent power producers, like ConnectGen. Once TEP has completed its interconnection studies, they will work with independent power producers to enter into Large Generator Interconnection Agreements (LGIAs).