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A Resolution Approving an Independent Contractor Agreement With Nerd Power Il, LLC for Facility Solar Design and Installation Representing Five Percent of Estimated Total Project Cost to Secure Federal Incentives in an Amount not to Exceed $162,541.00, Authorizing Its Execution and Waiving the Village’s Bid Process for the Agreement
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Introduction
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The purpose of this item is to approve a Resolution approving an agreement with NeRD Power and waiving the Village’s bid process for the agreement.
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Recommended Action
Approve the Resolution approving the agreement with Nerd Power and waiving the Village’s bid process, which requires approval by two-thirds of the Village Board, per Village Code Sec. 2-6-10.
Prior Board Action
• The Village Board adopted the 2026 - 2030 Capital Improvement Plan on December 9, 2025. The CIP includes the Public Works solar project.
• The Village Board adopted the Climate Ready Oak Park (CROP) plan on August 1, 2022. The CROP plan includes commitments related to renewable energy for Village facilities and commitments for emissions reductions.
• The Village Board adopted a Memorandum of Understanding with the Cross-Community Climate Collaborative (C4) on June 21, 2026.
Background
Village Staff is requesting that the Board approve an agreement with NeRD Power for $162,541, or approximately 5% of anticipated project costs for seven modeled solar photovoltaic installation projects. The scope of this agreement includes activities necessary to establish the Federal Investment Tax Credit (ITC) “Safe Harbor” treatment for the project. Establishing ITC safe harbor allows the Village four years to complete all or a portion of the seven solar projects and be able to receive the ITC.
Climate Ready Oak Park Commitments:
• Meet the energy needs of Village facilities with 100% renewable electricity by 2030.
Village Board Goals 2026/2027:
• Pursue opportunities to increase the percentage of renewable energy supplied to Village facilities through onsite solar and community solar.
Village Staff worked with NeRD to create PV system proposals for seven Village Facilities. The $162,541 in the current contract represents 5% of the total cost if all seven systems are installed. Approving this contract and paying 5% of the total costs of seven systems allows the Village to capture the value of the Federal Investment Tax Credit (ITC) for any of these systems put into operation by 2030.
Currently, the CIP includes a proposal for a solar energy system on the Public Works Facility. This facility has sufficient roof space for a large solar PV system and high electricity use. The electric heat at the Public Works facility is not included in the Village’s franchise accounts with ComEd, meaning that the Village pays the electric bill for this use. A solar PV system on this facility will result in annual energy cost savings and return on investment.
Other proposed projects include facilities which are a part of the Village’s franchise accounts. Before returning to the Board with agreements for those projects, staff will assess the benefits to Village residents in terms of savings on the ComEd franchise charge on their bills.
If the Village Board ultimately decides only to move forward with the Public Works solar array, the full $162,541 deposit will apply towards that project and the Village will lose no money. Paying the full 5% for all seven projects allows the Village the ability to assess the benefit of completing those projects in the next four years and accessing the ITC.
The ITC for solar energy projects is currently phasing out. Under the Inflation Reduction Act, the Federal Government created a process by which, for the first time, tax-exempt entities could benefit from certain tax credits through a process called Elective Pay. For solar energy systems installed on Village Facilities, the Village is eligible for a credit of up to 50% of total project costs. This represents significant savings for Village projects. For these reasons, staff is supportive of waiving the bid process.
The Credits are as follows:
• Base credit: 30% of project costs.
• Energy Communities: 10% of project costs (Oak Park is likely eligible)
• Domestic Content: 10% of project costs
The ITC is expiring. For projects to qualify for a credit, they must meet one of the following deadlines:
• A project completed and placed in service by December 31, 2027; or
• Incur at least 5% of total project cost by July 4, 2026.
If the Village Board does not wish to waive the bid process, it may be possible to install and place in service the Public Works solar project by December 31, 2027. However, because of related roof work needing to be completed, there is a risk of not completing the project in time to capture the ITC.
By approving the attached contract and paying 5% of project costs for multiple Village solar projects the deadline for completion and placement in service is extended to 2030. If the Village does not complete every project, the 5% paid for that project will be applied to the cost of one of the other projects with no loss to the Village.
Village Staff began engaging with NeRD Power through their work with Seven Generations Ahead and the Cross Community Climate Collaborative (C4). C4 identified NeRD Power as an organization whose experience, project approach, and execution capabilities aligned with the C4 network standards. NeRD has a track record of assisting municipalities in designing projects to capture the Investment Tax Credit. For these reasons, staff is supportive of selecting NeRD Power.
The Public Works facility is a completely electric facility with two electric meters, one for general electricity use and one for electric heat. The general electricity use is part of the Village’s franchise accounts and receives bill credits resulting in a monthly bill of zero dollars. The electric heat meter is not part of the franchise agreement, and the Village pays for this electric use. This relates to the Village’s Franchise Accounts since the Village pays the bill for electric heat at Public Works, the amount offset by a solar PV system would be savings to the Village and demonstrate a return on investment regardless of any future decision in relation to the franchise accounts.
The benefit of solar PV systems on accounts which are part of the franchise will depend on which approach the Board pursues in regard to those accounts. Staff will explore the impact of each project before bringing them to the board for budget and contract approval. These two benefits will also be examined in more detail as the Board considers the franchise accounts in the future.
• Bill Credits - Installing solar PV on Village Facilities will reduce the amount of grid electricity used by Village facilities. This may result in a decrease in the franchise fee assessed on electric customers in the Village.
• Cash Payments - Should the Village choose to convert the bill credits to cash payments, the Village will see cash value from grid energy savings related to the solar PV systems and a return on investment on the solar panels.
Timing Considerations
Approving the contract will allow staff to issue the first payment of $162,541 to NeRD Power by July 4. Doing so will provide the Village access to the Investment Tax Credit for any of the proposed solar projects placed into service before 2030.
Financial Impact
The Building Improvement Fund (GL#3012.43790.101.540673) includes $90,000 to cover the 5% needed for the Public Works solar array, which is included in the CIP for 2027. Additional funds within the Building Improvement Fund are available to cover an additional $40,000. Staff will need to request a budget amendment of $32,541 to cover the difference.
The Capital Improvement Plan includes $1,680,000 in 2027 for a solar energy project on the Public Works building for FY2027. Any subsequent projects would be requested and approved through the Village’s CIP process annually.
Operations Impact
Staff from the Office of Sustainability and Public Works have been involved in the proposal development. Public Works will oversee the contracts for the installation work. The Office of Sustainability will track and report the impact of the installations through the Village’s benchmarking program. Staff from the Finance Department will assist with filing the appropriate paperwork with the IRS for the direct pay Investment Tax Credit benefit.
DEI Impact
Installing solar PV systems on Village facilities will save Village resources. This will free up resources for programming which may benefit vulnerable populations and help prevent future levy increases which would disproportionately affect vulnerable populations.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Approve the Resolution
Advantages:
• The Village will be able to benefit from the Federal Investment Tax Credit for any of the seven projects placed in service by 2030.
• NeRD is a solar installation company that has been vetted by the Cross Community Climate Collaborative.
• The Village will see energy savings and a return on investment of a solar PV system installed on the Public Works building.
• The Village will not lose any of the 5% down payment should they choose not to complete all seven projects.
Disadvantages:
• Waiving the bid process does not allow the Village to evaluate proposals from multiple installers.
Alternatives
Alternative 1:
The Board can elect not to approve the Resolution and direct staff to pursue placing the Public Works solar array in service by December 31, 2027.
Advantages:
• For projects placed in service by December 31, 2027 the ITC will still be available.
• The Village would be able to complete a competitive bid process for the project.
Disadvantages:
• It will not be possible to place all seven projects in service by December 31, 2027. Any projects completed and placed in service after that date will not be eligible for the ITC.
• Prior to installing solar, there are improvements which need to be made to the roof at Public Works. While possible that both projects could be completed by December 31, 2027, there would be a risk that the PV system would miss the cutoff and not be eligible for the credit.
Alternative 2:
The Board can elect not to approve the Resolution
Advantages:
• The Village would not need to waive the bid process.
• No financial resources would be used on these projects this fiscal year.
Disadvantages:
• Meeting the Village’s goal of 100% renewable electricity for Village facilities will be considerably more expensive without the ITC.
• Any future solar PV installations would not be eligible for the ITC.
Anticipated Future Actions
If approved, Village Staff will present the seven projects as part of the CIP presentation. Each project will require an amendment to the agreement and budget allocation from the Board.
Prepared By: Lindsey Roland Nieratka, Chief Sustainability Officer.
Reviewed By: Jack Malec, Assistant to the Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. NeRD ITC Agreement
3. Project Summary
4. 2026 CIP - Public Works
5. Letter of Support - Cross Community Climate Collaborative
6. NeRD Power Experience Summary
7. Solar Proposal