Committee to explore new paths to bring sun power to LW
GRF DIRECTOR'S COLUMN
by Mike Ban. eld
GRF Director
Late in 2025, the GRF Board tasked the Facilities Committee to explore the possibility of bringing solar power to GRF Trust properties. It created the Solar Power Subcommittee (SPSC) whose focus was to identify and pursue an opportunity to capitalize on a 40% federal tax credit by engaging in a Power Purchase Agreement (PPA) with a solar power contractor. The tax credit—which Leisure World was not eligible to pursue on its own—expires July 1, when all applicable solar projects must be under construction.
A PPA, simply put, is when a bank purchases, builds and maintains a solar power system on GRF property in exchange for GRF paying them a set rate for the power produced—a rate that is substantially less than the going rate charged by Southern California Edison (SCE).
The long term “lease” contract would be 25-30 years, at the end of which GRF would own the system outright with all maintenance responsibilities into the future. The advantage of this program is that GRF would have no capital outlay in exchange for reduced savings over the course of the contract.
The committee analyzed power consumption and costs at each of GRF's 27 metered facilities and identified those that use the most expensive peakdemand power.
Members determined that a combined approach using both dedicated rooftop systems and a solar farm system could potentially be the most cost effective option. The Physical Property Department sent out a Request for Proposal (RFP) to 18 local commercial solar contractors. Only four responded, only one of which, Newport Power, met the termsoftheRFP. SPSCreviewed the proposal, found the projected savings to be insufficient and asked the contractor to revise the scope of work to augment the benefit to the GRF.
The revised proposal was presented to the Facilities Committee and then to residents at the Feb. 9 Solar Town Hall, which generated many questions and comments, both for and against.
At the end of the meeting the contractor, on behalf of the PPA bank, Sustainable Finance, presented the committee with a Letter of Intent (LOI). It outlined terms for a consequent contract. Contract specifics cannot be publicly disclosed because of confidentiality and non-competition clauses.
GRF counsel vetted the LOI and presented it to the full board in executive session on Feb 19. The board found the terms unacceptable and rejected it. The SPSC offered suggestions to strengthen GRF’s position, but there has been no response from the bank. At the Feb. 20 Facilities Committee meeting, the subcommittee was directed to begin anew as follows:
• Develop a comprehensive plan to address reducing and eliminating fixed costs for energy providing GRF with independence from the grid.
• Engage appropriate expertise to support development and implementation of plans.
• Extend the timeline to accomplish intended outcomes with multiple opportunities to engage the Leisure World community and demonstrate a sound approach to improvement.
• Investigate “for cash” opportunities for implementing solar so that GRF benefits fully and that those benefits are distributed evenly over time to residents.
• Investigate potential partnerships that could reduce the cost of improvements to GRF’s electrical infrastructure, The Solar Power Subcommittee is committed to finding the best logistical and financially attainable option to bring solar power to the GRF Trust properties to benefit shareholders now and in the future.
