Sun Rises on Lancaster, Taiwanese Firm Partnership

Yee Szeto The City of Lancaster is partnering with a Taiwanese solar company in hopes of adding more revenue to the city coffers. The city is allowing US Topco Energy to develop a solar farm on about 38 acres of vacant, city-owned land, city officials said. US Topco has an option of paying for the land on a rental basis, or paying a one-time development fee. In return, the company has agreed to give Lancaster a portion of the energy proceeds it gets from selling the power to Southern California Edison. “We are looking at lightening the taxpayer’s load and (to) generate revenue through alternate means,” than collecting property or sales taxes, Deputy City Manager Jason Caudle said. The city is still in discussions with Edison on the purchase of the electric power, Caudle said. As a result, the amount the city stands to gain from the deal is unknown. US Topco’s benefits are two-fold: the company gains a foothold in the U.S. solar market, and it will operate in a city that embraces alternative energy and is willing to cut bureaucratic red tape to support business, said James Kuo, vice president of operations for US Topco. Initial plans call for the solar farms to generate 50 megawatts of power. Later, the goal is to create a program for US Topco to provide solar panels for residences, and to manufacture and ship solar panels, city and company officials said. US Topco opened an office in the San Gabriel Valley two years ago. Its parent company, Topco Scientific, manufactures solar components from the silicon wafers to the completed panels. US Topco sought to build its solar farm project in Lancaster after it learned of the city’s enthusiasm for supporting alternative energy projects, said Deputy Mayor Kit Yee Szeto. Last year, the city facilitated a project between homebuilder KB Homes and Chinese company BYD Corp. KB used solar panels and batteries from BYD in a handful of homes at its Alamosa community. In addition, the city has helped facilitate several other alternative energy projects, though none have involved commitments like the deal with US Topco.