GRAND RAPIDS ? The City of Grand Rapids took another step towards its goal of having all of its energy needs supplied by renewable sources by 2020 with the ceremonial launch of 429 solar panels atop the city’s water system administration center roof, what Mayor George Heartwell described as the ?next step in our energy future.?

The $500,000 array is expected to provide 25 percent of the building?s electricity needs. As the daily production tracked upward of 400 kilowatt-hours, Heartwell said the solar roof was ?a transformative moment? and the ?first of many installations you?ll see? on city buildings in Grand Rapids.

The solar panels, half-funded by a federal grant and half funded by city water customers, are expected to generate an estimated 135,000 kilowatt-hours per year. Since becoming operational in May, the solar roof had generated almost 35,000 kilowatt-hours. The estimated payback on the city?s share of the installation cost: 8 years. The system is expected to function for at least 30 years.

The system was installed by South Bend, Ind.-based Inovateus Solar. It covers only part of the water building?s roof because that?s all the city could get for $500,000. If the panels work out, Grand Rapids will look to put solar roofs elsewhere in the city – so long as it can get grants to fund some of the upfront expense. The city’s water treatment plant near Lake Michigan is a likely candidate, officials said.

Grand Rapids has set a goal of having all of its energy needs supplied by renewable sources by 2020. About 24 percent of the city?s power comes from renewable sources now.

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