First Solar Agrees to Sell Energy to City in California

First Solar Inc. (FSLR), the largest U.S. solar-panel manufacturer, agreed to sell power to the City of Roseville, California, from the Lost Hills photovoltaic facility that it’s developing in the state.

Construction of the plant may begin next year and the 10-year power-purchase agreement will take effect in 2015, the Tempe, Arizona-based company said today in a statement. Roseville agreed to purchase 325,000 megawatt hours of power for $24 million over 10 years, First Solar said in the statement.

In its first year the Lost Hills plant, in Kern County, will produce enough power for at least 11,000 homes, the company said.

The agreement will help the city reach the state’s requirement that 33 percent of its energy come from renewable sources by 2020, Michelle Bertolino, Roseville’s electric utilities director, said in the statement.

The city, about 20 miles (32 kilometers) northeast of Sacramento, will receive all of the solar farm’s energy for four years, after which it will use a decreasing percentage as the remainder is purchased by Pacific Gas and Electric Co. under an additional PPA with First Solar, according to the statement.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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