Community Solar Garden Project
Project Overview
The Municipality of the District of Lunenburg (MODL), along with the Districts of Shelburne (MODS) and Argyle (MODA), are collaborating on a 7MW community solar garden to provide clean, renewable energy to residents. The project will generate enough electricity to power approximately 1,200 homes and reduce greenhouse gas emissions by 6,000 tonnes annually (150,000 tonnes over 25 years).
Located at 283 Oakhill Rd, the site was selected due to its proximity to power lines, lack of need for clear-cutting, and potential for repurposing a former industrial sawmill site into a hub of green energy. The project is being managed by Alternative Resource Energy Authority (AREA) on behalf of the municipal partners.
This project has gone through several changes, and the current model as proposed to Council is outlined below.
The estimated project cost is $20-25 million, to be fully financed through borrowing and repaid through project revenue. An Inter-Municipal Services Corporation (IMSA) will be established to own, build, and manage the solar garden. Partner municipalities will guarantee the borrowing but will not take on new debt themselves.
Municipal Partners’ Ownership Share
District of Lunenburg: 56.14%
District of Shelburne: 21.93%
District of Argyle: 21.93%
How Community Solar Works
The solar garden operates under Nova Scotia’s Community Solar Program, offering a subscription-based model where residents receive a $0.02/kWh discount on their power bill (equivalent to ~10% savings for the average household). There is no cost to subscribe—residents simply sign up to participate.
This initiative provides an accessible green energy option for renters, homeowners without suitable roofs, or those who want to support renewable energy but cannot install solar panels. MODL’s share of the total approximate 1,200 subscriptions are around 700, with approximately 60 reserved for residents near the project site and the rest available to MODL residents. The province encourages prioritization of low-income and equity-deserving groups to ensure broad accessibility.
To keep the project 100% subscribed, eligibility requirements may be adjusted over time. Municipal Councils, through the IMSA, will have the authority to make changes as needed. The final subscription model will be determined once the project application is approved.
Financial & Community Benefits
The project is expected to generate approximately $250,000 in annual revenue, which will be shared among partner municipalities. Beyond benefiting subscribers, this revenue can be reinvested into other municipal green initiatives, such as Well Financing Programs or Clean Energy Financing Programs, helping to reduce energy poverty and improve access to clean drinking water.
To proceed with the project, Council has budgeted $650,000 in the 2025/26 capital budget for the land acquisition, which will be repaid once construction is complete and financing is secured. Additionally, $840,000 is allocated in the 2025/26 capital budget to cover interest costs during construction, which will also be reimbursed upon securing financing. Both amounts are funded through general operating reserves and will not impact municipal debt levels.
Project History & Community Engagement
Initially, a site on Mullock Road beside the Lunenburg Regional Community Recycling Centre was selected due to its access to transmission lines, municipal ownership, and compatibility with the landfill buffer zone. However, environmental assessments conducted in December 2023 discovered unique plant species, making the site undevelopable.
As a result, a new location at 283 Oakhill Rd (the former Bowater Sawmill site) was chosen. This site was selected because it has direct access to power lines, is a post-industrial site, and does not require clear-cutting.
The Municipality has engaged with the community through multiple “Dinner and Learn” sessions to gather feedback:
October & November 2023 – Held for the initial Mullock Road site.
May 27, 2024 – Held for the newly selected Oakhill Rd site.
Why Invest in a Community Solar Garden?
This project is an opportunity to reduce electricity costs, create a new municipal revenue stream, and support sustainability goals while fostering regional collaboration between municipalities. By repurposing an industrial site, the project also aligns with broader climate action commitments and enhances energy resilience for the community.
Additionally, it creates an affordable green energy option for individuals who may not otherwise have the money or property to invest in personal solar projects. This ensures that renewable energy is more equitable and accessible to a broader group of residents.
This initiative represents a long-term investment in sustainability, financial resilience, and community well-being.
Completed Steps & Next Steps
Completed:
The creation of an Intermunicipal Services Agreement (IMSA) was approved by partner Councils (if awarded a PPA).
The Councils passed motions to provide a debt guarantee for the project (if awarded a PPA).
The project’s application, including a proposed bid price, was submitted to Nova Scotia’s Community Solar Program on March 7, 2025.
Next steps:
The results of the project’s application are expected by May 2025. If approved, Council will review the outcome and decide whether to proceed with construction and operations.
How can I learn more?
If you'd like to stay informed about public engagement opportunities, or subscriptions, please enter your email in the Stay Informed box on this page to receive email updates and stay connected with this exciting project.