ASHFIELD — The Selectboard has signed a letter of intent with Solect Energy to build two solar arrays.

With the letter having been signed on Monday, the Hopkinton-based solar energy company can proceed with site visits and electrical engineering, while the Ashfield Energy Committee can proceed with its application for a $1 million state Climate Leader Communities grant. If received, the grant would pay for 90% of the installation costs for a ground-mounted array at the Wastewater Treatment Plant and a roof-mounted array at the Highway Garage.

At the Wastewater Treatment Plant on Conway Road, Solect Energy is recommending a 179.45-kilowatt system, with an access road and chain-link fence surrounding it. Andreas Schmid, vice president of business development with Solect Energy, said the array would include six rows of panels, with each row placed roughly 9 feet apart. Panels would be 8 feet above the ground with a 25% pitch.

Constructing the system would cost $623,163. Should the town receive the Climate Leader Communities grant, it would leave a little more than $62,000 left for the town to pay.

Schmid said the arrays will produce more than enough energy to meet the Wastewater Treatment Plant’s needs. The plant uses 76,520 kilowatt-hours per year, and the proposed system could produce as many as 195,367 kilowatt-hours in its first year.

“That’s 255% of the annual consumption,” Schmid said.

Excess energy can be sold back to the grid and proceeds could be used to offset electric bills for other town facilities. In the first year, Schmid said the town could earn $21,117 in energy bill credits and $28,215 in Solar Massachusetts Renewable Target (SMART) Program incentives.

Over the course of the 25-year lifespan of the solar panels, Schmid said the system could result in $450,161 in energy bill savings, $694,005 in bill credits and $535,765 in SMART incentives.

At the Highway Garage on Cape Street, Solect Energy is recommending a 74.88-kilowatt rooftop system. Construction of the system would cost a total of $209,430 and, should the town receive the Climate Leader Communities grant, it would be on the hook for roughly $21,000.

“It’s a lower cost to install because we don’t have to put up racking, we don’t have to build an access road, we don’t have to put up fencing,” Schmid said of the rooftop system. “We just have to put this (the panels) up on the roof.”

According to Schmid, the Highway Garage uses 17,760 kilowatt-hours per year, and the proposed system could produce 79,290 kilowatt-hours in the first year. This would result in $3,098 in electric bill savings, $10,933 in bill credits and $13,830 in SMART incentives in the first year. Over a 25-year lifespan, the system could produce $104,925 in electric bill savings, $359,305 in bill credits and $262,611 in SMART incentives.

The panels will degrade over time, but as solar technology has evolved, the lifespan of panels has lengthened, Schmid said. The proposed panels have a 30-year warranty, but at year 30, they could still be producing at an 85% capacity. At that time, the town will be able to choose between replacing the panels, keeping the existing ones or removing the entire system.

“Maybe you don’t replace the panels, maybe you just need to replace the inverters in year 30,” Schmid said. “They’re more durable and long-lasting. You can get a little extra production out of them.”

Schmid said the town will also have the option to sign a yearly maintenance contract with Solect Energy, which will include yearly inspections and any required maintenance. Maintenance is free for the first year. In the second year, maintenance of the Wastewater Treatment Plant array would cost $4,632 and maintenance of the Highway Garage array would cost $2,956.

“That ensures safety and ensures productivity, and the kind of savings and revenue from the incentive program that you’re counting on,” Schmid said.

The Energy Committee is expecting to hear whether the town has been named a Climate Leader in the coming weeks. If so, the committee can proceed with the grant application and working with Solect Energy to finalize the solar array plans.

Energy Committee Chair Alexandra Osterman said the town has met all the requirements and has no reason to believe it will not be named a Climate Leader. Climate Leader grant applications will be due Aug. 1 and Osterman hopes to hear back about the funding awards by the end of the year. If awarded, solar array construction could begin as soon as spring 2026.

Reach Madison Schofield at 413-930-4579 or mschofield@recorder.com.