Submitted By: Tony Clayton
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Presentation By: Doug Peebles
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Department: Electric Utility
FORMAL TITLE:
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Resolution 2027-7 to sunset the Ocala Community Solar Subscription Program
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Ocala's Community Solar Subscription Program launched in June 2020, allowing Ocala Electric Utility (OEU) customers to subscribe to 25 percent, 50 percent, or 100 percent of their usage under the City's 17 MW entitlement in the Florida Municipal Power Agency’s (FMPA) Florida Municipal Solar Project. Subscribers pay a Solar Energy Surcharge of $0.016/kWh, which was designed to reflect the cost of solar without affecting non-subscribers. As of October 2026, about 0.2 MW (1.17 percent) of the available capacity was subscribed. On September 16, 2026, the Utility Advisory Board approved the sunsetting of the program.
FINDINGS AND CONCLUSIONS:
After five years, the program has not achieved meaningful participation: as of April 2026, the largest participant canceled their subscription, leaving about 99 percent of the entitlement unsubscribed; residential uptake is negligible; and one customer previously held about 89 percent of subscribed capacity.
The cost of administering and marketing the program is disproportionate to its use. Customers frequently confuse it with net metering, and the surcharge no longer reliably reflects the actual cost of solar. Staff therefore recommend sunsetting the program, giving existing subscribers 45 days' notice, and continuing to serve Ocala's 17 MW FMPA solar entitlement through OEU's general power supply.
FISCAL IMPACT:
Sunsetting the program ends approximately $27,000 per year in Solar Energy Surcharge revenue. Ocala's 17 MW capacity under the FMPA ARP Solar Participation Agreement will be added to the general generation portfolio. A budget amendment is not required.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This resolution will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny
RESOLUTION 2027-7
SUNSET THE OCALA COMMUNITY SOLAR SUBSCRIPTION PROGRAM
WHEREAS, in June 2020, the City launched the Ocala Community Solar Subscription Program, allowing Ocala Electric Utility customers to subscribe to a portion of their usage from the City’s 17 MW entitlement in the Florida Municipal Power Agency’s Florida Municipal Solar Project for a Solar Energy Surcharge; and
WHEREAS, as of October 2026, only approximately 1.17 percent of the available capacity is subscribed, and the cost of administering the program is disproportionate to its use; and
WHEREAS, on September 16, 2026, the Utility Advisory Board approved sunsetting the program.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, in regular session duly assembled, as follows: the Ocala Community Solar Subscription Program is hereby sunsetted upon adoption of this resolution.
This resolution adopted this ______ day of ______________________, 2026.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire J. Bethea Sr.
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney