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SALT LAKE CITY — A new 72-megawatt solar farm on Navajo Nation land in southeastern Utah — big enough to power 36,000 homes — now has long-term federal financing to cover the cost of the project.
U.S. Department of Agriculture Rural Development Utah announced this week it is putting up $76.5 million to help with costs of the Red Mesa Tapaha Solar Farm, which was inaugurated in August. Lack of connectivity to the power grid is a big issue in the Navajo Nation, though some of the power generated at the new facility is being sold to customers off the reservation.
"It's fully operational. It's running as expected and as it should," said Arash Moalemi, deputy general manager of the Navajo Tribal Utility Authority owned and operated by the Navajo Nation. He said the federal money will be used to essentially refinance short-term financing from the National Rural Utilities Cooperative Finance Corp. used to build the Red Mesa facility.
Financing particulars aside, the creation of the solar farm — which serves power customers in Utah and California as well as Navajo Nation residents — is significant. Energy sales create a revenue source for the nonprofit utility, potentially allowing it to subsidize Navajo Nation residents' power rates and extend the grid at the reservation to more homes. Proceeds from the project will also be used in the Red Mesa community for 50 scholarships and 25 paid internships.
"This is a really big deal," Moalemi said. As it stands, the Navajo Tribal Utility Authority provides power to 40,000 homes on the Navajo Nation, which covers portions of southeast Utah, northeast Arizona and northwestern New Mexico, where the three states meet. However, Maolemi said, 14,000 Navajo Nation homes still lack connection to the grid and rely on other sources for power.
"Tribal lands are often in remote areas and unable to easily connect to a grid," Michele Weaver, USDA Rural Development Utah director, said in a statement. She said the announcement of the refinancing "reinforces President (Joe) Biden's commitment to equal opportunity and support for underserved communities through the federal government."
The Red Mesa Tapaha Solar Farm sits on 500 acres in the Utah portion of the Navajo Nation, with 66 megawatts of its 72-megawatt capacity going to paying power customers in California and Utah. The remaining six megawatts will help power homes in three Navajo Nation chapters.
The Navajo Tribal Utility Authority also operates the Kayenta Solar Farm on the Arizona portion of the Navajo Nation, which generates 55 megawatts of power. A third solar facility is proposed south of Cameron on the Arizona side of the Navajo Nation.
Separately, the U.S. Department of Energy announced in late February it had preliminarily earmarked $8 million to connect 300 homes in the Navajo Nation and Hopi Reservation to off-grid solar energy access. The funds would go to Flagstaff, Arizona-based Native Renewables, a nonprofit entity that will use the money to install stand-alone solar-power generating systems at homes in the area.
Homeowners lacking a connection to the power grid in the Navajo Nation typically tap gas-fueled generators, flashlights and kerosene lamps to fill the void.
