A solar energy project the Lampasas City Council is considering may generate only half the power originally estimated, according to an executive summary in the city’s grant application, prepared by HDR Engineering.

HDR’s estimate, which City Manager Michael Stoldt said was deliberately conservative, actually may increase Lampasas’ likelihood of receiving the $2 million grant the city is seeking, he said.

The city’s grant application estimated that a total budget of $2.4 million -- the State Energy Conservation Office grant plus $400,000 in city funds -- would pay for construction of 1,472 photovoltaic panels. That equipment would generate about 433,000 kilowatt hours of electricity per year, or about 0.5 percent of Lampasas’ annual consumption.

The city’s first feasibility study suggested a budget of $2.4 million could build enough panels to produce 1 percent of the energy used annually.

Submitting a moderate estimate is better than making overly ambitious claims in an application, Stoldt said, as grant funding can be rescinded if an entity later learns it cannot afford to build everything it expected to.

“We haven’t overpromised,” Stoldt said. “If anything, we may be able to do more [than HDR estimate].”

If Lampasas receives a grant and the City Council accepts it, the city will build as many solar panels as the budget will allow, Stoldt said.

The effect of solar power use on utility bills should be roughly the same, he said, regardless of how many kilowatt hours of renewable energy the city produces.

If Lampasas uses solar power for a portion of its electricity, the average residential electricity bill may increase between $0.45 and $2 per month, according to the executive summary for the SECO grant. Bills for small general service would increase by $0.30 to $2 per month, and large general service bills would increase by $2 to $26 monthly, according to estimates.

When discussing whether to apply for the grant, Stoldt and city staff noted that the City Council can decline a grant if generating power from solar panels would impose a burden on the city or its utility customers.

“At this point I haven’t gotten any negative information about it,” Stoldt said of the possible energy project.

SECO, part of the state comptroller’s office, has $30 million to distribute for projects relating to renewable energy. The maximum grant amount is $2 million, so funding could go to 15 entities -- or more, if some applicants did not apply for a full grant, Stoldt said.

The city manager said he has not heard how many entities applied for funding, but SECO originally planned to require construction contracts by Dec. 11.

The announcement of grant recipients

should be made within the next few weeks, Stoldt estimated. fluctuate