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# As Council vets major solar deal, CAO says he’s ‘extremely comfortable’ with it
- URL: https://www.richmonder.org/as-council-vets-major-solar-deal-cao-says-hes-extremely-comfortable-with-it/
- Published: 2026-09-24T14:32:54.000Z
- Updated: 2026-09-24T14:48:19.000Z
- Description: “I’m satisfied that we have mitigated the risk to an acceptable level where the reward far outweighs it.”
- Author: Graham Moomaw
- Tags: City Government, #lead

City Hall’s top administrator said Wednesday that he’s “extremely comfortable” with the terms of a 25-year deal to put solar panels on dozens of city buildings.

The pending solar contract has been in the planning stages for months. Along the way, there’s been tension as various departments worked out details of how Richmond could reap the savings and climate benefits of solar energy while minimizing the legal and financial risk of a multi-decade commitment.

At a lengthy City Council committee meeting Wednesday afternoon, Chief Administrative Officer Odie Donald II said the process has been “interesting and complex.” 

Last month, Donald [said in an email](https://www.richmonder.org/richmond-is-rushing-to-do-a-solar-energy-deal-some-officials-see-a-lot-of-risk/) there were concerns about “a lot of risk” associated with the project, which is being led by the city’s Office of Sustainability. This week, he told Council members he felt good about the final product. The “clunkiness” of the process, he said, made it better and gave him confidence “we’ve gotten it right.”

“I’m satisfied that we have mitigated the risk to an acceptable level where the reward far outweighs it,” Donald said, adding that he didn’t want to give the “false impression that there will be absolutely zero risk.”

It’s not clear if Donald’s comments will be enough to guarantee the solar deal’s smooth passage in a fast-turnaround vote set to occur Monday.

At the committee hearing, Councilor Kenya Gibson (3rd District) said it’s well known that homeowners can get “scammed” by residential solar contracts that don’t live up to the sales pitch or leave customers in limbo after a bankruptcy. She said she wasn’t calling the Richmond contract a scam, but saw similar high-pressure sales tactics and aspects of the deal she found “alarming.”

Councilor Sarah Abubaker (4th District) said she has nothing against clean energy, but was taking a “trust but verify” approach to ensure the city is protected if the deal doesn’t go as planned.

Councilor Katherine Jordan (2nd District) said she supports the project, because there’s also a “risk of not doing anything.”

“There is not another solar deal out there,” Jordan said.

At the end of the nearly two-hour hearing, Jordan made a motion to send the deal to the full Council with a recommendation to approve. It failed, because neither Abubaker nor Gibson seconded the move.

Jordan then motioned to send the deal to the full body with no recommendation. That passed 3-0.

![](https://storage.ghost.io/c/99/06/99067822-fdfd-42b1-ab19-555c33eefb89/content/images/2026/09/image-26.png)

### **The proposal**

Under the power purchase agreement, which Mayor Danny Avula supports, a private developer would install and own solar panel arrays on up to 39 rooftops of government buildings. The upfront equipment and installation costs would be paid by the developer.

The city would purchase at least 5 megawatts of solar energy from the company — Staunton-based Secure Solar Futures — at a lower rate than what it currently pays Dominion Energy for electricity. Over 25 years, proponents of the project say, the panels could generate almost $20 million in savings for the city, in addition to helping Richmond meet its environmental sustainability goals.

Solar power purchase agreements have been used widely in Virginia, and Secure Solar Futures has done numerous deals like the large-scale project proposed for Richmond.

[As electricity costs rise and federal tax credits wind down, Richmond hopes to move fast on solarCurrently, Richmond’s annual electricity costs are about $18.7 million.![](https://storage.ghost.io/c/99/06/99067822-fdfd-42b1-ab19-555c33eefb89/content/images/icon/apple-touch-icon-1-3fcccf94-74b5-45a3-8f36-3367f333c862.png)The RichmonderSarah Vogelsong![](https://storage.ghost.io/c/99/06/99067822-fdfd-42b1-ab19-555c33eefb89/content/images/thumbnail/EPMW11-7534b9ed-8933-4a29-a5a7-cbc4385500a8.jpg)](https://www.richmonder.org/as-electricity-costs-rise-and-federal-tax-credits-wind-down-richmond-hopes-to-move-fast-on-solar/)

While vetting the deal, officials have sought to ensure it will deliver the promised savings, won’t come with hidden costs and doesn’t lock the city into something it has little ability to revisit later.

The Council is under a time crunch to approve 39 separate leases for rooftop space. Because of timelines tied to federal solar tax credits that are expiring, the Council has been told it must vote by Sept. 30 in order for the deal to be financially viable. The solar developer gets those tax credits, according to officials, but would pass the savings to the city through lower energy rates.

Council members received an overview of the project in July. Wednesday’s meeting of the Governmental Operations Committee was the first time the governing body reviewed precise details in an open meeting.

![](https://storage.ghost.io/c/99/06/99067822-fdfd-42b1-ab19-555c33eefb89/content/images/2026/09/34C16623-F6B4-4911-B183-DDE9C0576BD3-69442-000007C0924ECE78.jpg)

Richmond Chief Administrative Officer Odie Donald II told City Council members he’s comfortable with the terms a solar energy contract set for a vote next week. (Graham Moomaw/The Richmonder)

### **Contract details**

The way the deal is structured, the city would pay an annual fee in advance for each solar site, depending on the expected energy output. 

If the panels need to be taken out of service so the city can perform roof maintenance, the city would pay the removal and storage costs. The city would also continue paying as if the removed panels were still producing energy.

If the city wants to purchase the systems outright or decides to stop paying for the solar energy, the deal lays out termination fees meant to help the developer recoup its upfront investment and avoid penalties related to the tax credits.

Those fees vary based on the size of each solar installation, and decrease over time. The first-year termination fee for the biggest planned solar setup at the city’s wastewater treatment plant is roughly $3.3 million. Across all 39 sites, the first-year termination fees add up to more than $28 million.

The city would pay the same rate for the solar energy across the life of the contract, with no yearly increases. That means the projected savings would depend partly on how much the city would be paying for Dominion power in the future. With Dominion’s rates rising, backers of the project say it allows the city to lock in lower prices for a cleaner energy source.

[Richmond eyes closed landfill as potential solar farm and pollinator meadow siteMore than half a dozen developers responded to a public request issued by the city to see what might be possible.![](https://storage.ghost.io/c/99/06/99067822-fdfd-42b1-ab19-555c33eefb89/content/images/icon/apple-touch-icon-1-da0756d2-38b5-4d24-9016-901fac4d0978.png)The RichmonderSarah Vogelsong![](https://storage.ghost.io/c/99/06/99067822-fdfd-42b1-ab19-555c33eefb89/content/images/thumbnail/E04037DF-9A3C-49FC-B44D-111924D94DDD_1_201_a-18e486a8-dfbf-4857-9a17-6e8a8ffdc718.jpg)](https://www.richmonder.org/richmond-eyes-closed-landfill-as-potential-solar-farm-and-pollinator-meadow-site/)

### **Council discussion**

Most of the Council’s questions came from Abubaker and Gibson, who serve on the three-member committee that reviewed the deal along with Jordan.

Gibson expressed unease that the leases would be with seven newly created, generically named LLCs. The contract indicates those LLCs would be co-owned by Secure Solar Futures and unidentified third-party investors.

“That’s who we’re actually doing business with,” Gibson said. “And I don’t really know who they are.”

A spokesman for Secure Solar Futures told The Richmonder information about investors is “confidential until it becomes official.” The company later said it’s currently the sole investor, but others could be announced after the deal is approved.

Laura Thomas, director of the city’s sustainability office, said it’s standard for power purchase agreements to involve LLCs. She assured the Council extensive staff work has already gone into the project to ensure it works for Richmond.

“Folks from all parts of this organization have been a part of this process and their technical expertise has gotten us to this point,” Thomas said.

During public comment, several speakers urged the Council to support the project.

“If the city misses this opportunity, they will be depriving Richmonders of a chance to have lower DPU bills, more funding available for essential city programs, and all the additional benefits that come with clean and resilient energy systems in their communities,” said Carolyn Pugh, climate policy director with the nonprofit Community Climate Collaborative.

Backers of the deal characterized the risk concerns as overblown, saying the feared financial losses could only occur in an unlikely scenario where the city stops paying for energy it agreed to buy.

“Essentially, we assume all the risk,” said Tony Smith, the CEO of Secure Solar Futures.

Abubaker disputed that, noting the privately owned solar panels would be added to the city’s property insurance. Secure Solar Futures would cover the costs of any rider added to the city’s insurance, as well as the first $5,000 of any deductible in the event of an insured loss.

Abubaker read aloud from a written comment she said the city had received from its insurance broker. The broker called the contract “extremely one-sided” and “not in the city of Richmond’s favor.”

“My advice would be to push back and try to get the contract revised accordingly,” Abubaker said, still quoting the insurance broker’s words.

Sarah Carpenter, a policy advisor to Avula who has been involved in the solar negotiation, said it was her understanding those insurance terms made the project cheaper.

“I just want to push back a little bit on that characterization from the insurance broker,” Carpenter said. “I don’t think that’s supported in the contract, the way I read it.”

Abubaker said Carpenter’s role as a policy aide to the mayor doesn’t put her in a position to give formal legal advice. Carpenter agreed.

The office of City Attorney Laura Drewry has also registered concern about the contract, but didn’t weigh in during the meeting. The city attorney’s office serves both the mayoral administration and the Council, occasionally putting lawyers in the position of having to advise two branches of government that may have opposing views.

The legal concerns were significant enough that the city attorney’s office resisted having the solar deal introduced earlier this month at the Council’s Sept. 13 meeting, according to city officials.

To speed up the process and take advantage of tax credits, the city didn’t do its own competitive bidding process. Instead, officials piggybacked off an existing contract the Prince William County Public Schools awarded to Secure Solar Futures.

There were competing claims Wednesday about the contract’s indemnification clause, which specifies who pays whom for losses and damages. Some Council members said Richmond seems to be getting worse indemnification terms than Prince William, but Secure Solar Futures said Richmond’s indemnification is better than the original contract.

Several Council members asked what would happen if it turns out the designated rooftops aren’t suitable for solar arrays, a concern they said was particularly relevant in a city with old buildings and a somewhat lax approach to maintenance.

If some rooftops won’t work, supporters said, sites can be dropped with no financial hit to the city.

Council members asked if that could be spelled out in a written amendment. Smith, the solar company CEO, said he was open to “friendly” amendments. He asked that they wait until after the Council votes.

“You have our word on record that we will do that,” Smith said.

Councilor Stephanie Lynch (5th District) asked if the Avula administration would return to Council asking for funds to prep rooftops for solar or solve unanticipated solar issues. It would be “classic city of Richmond,” she said, to try a “great, well-meaning, beautiful thing” but overlook how much money is needed to make it work.

Donald, the CAO, assured the Council that wouldn’t happen.

### **‘A great conversation’**

Jordan and Councilor Andrew Breton (1st District) both indicated they’ll be voting for the deal.

Breton said he’s been discussing details with the Avula administration for months.

“Every question that we’ve had is getting back an answer that is positive and responsible,” he said. Breton also said it would be helpful if Council could get a full rundown of possible risks and how the city resolved each one.

Jordan said the lengthy hearing may have set a new record for the committee.

“It’s a great conversation,” Jordan said. “This is an exciting moment for the city.”

Speaking with reporters afterward, the solar company CEO said he felt Council members had been “misinformed.”

“I think there's been a lot of misinformation about the terms of the contract and the risks,” Smith said. “And it's unfortunate that these Council members were misinformed by whatever source it might have been.”

Smith said he was referring to a [recent articl](https://www.richmonder.org/richmond-is-rushing-to-do-a-solar-energy-deal-some-officials-see-a-lot-of-risk/)e by The Richmonder that was based largely on direct quotes from Avula’s CAO and a senior city attorney, both of whom expressed concerns about risk in internal emails last month. Smith later said he wished to retract his comment about “misinformation,” clarifying that he only felt the article lacked context about how the risk concerns had been resolved.

Because the contract was just introduced Monday, Wednesday’s meeting was the first time the Avula administration discussed those concerns at length in a public setting.

Abubaker asked if the Council could receive full documentation on the city’s risk assessment of the deal. The CAO indicated he would explore the possibility of sharing it, but said it could invoke issues with attorney-client privilege.

*Contact Reporter Graham Moomaw at* [*gmoomaw@richmonder.org*](mailto:gmoomaw@richmonder.org). *Dominion Energy is a sponsor of The Richmonder but was not allowed to influence or review this report.*