Case Study: 

Ground-Mounted Solar Array In Healthcare 

BETTER BUILDINGS ALLIANCE

Madera Community Hospital’s Smart Financing 

of Solar Array 

Madera Community Hospital is a non-profit 

organization located in Madera, California. Madera 

Community Hospital completed the installation of a 

1,140 kilowatt (kW) ground-mounted solar photovoltaic 

(PV) array in October 2011, through a 20-year power 

purchase agreement (PPA). The array produces 

2,183,220 kWh annually and offsets approximately 40 

percent of the hospital’s electricity consumption. It is 

located on an adjacent property owned by the 

hospital, with a single-axis tracking design to maximize 

energy production. 

Project Keys to Success 

Madera’s primary motivation for the solar 

installation was to reduce its electricity bills. Hospital 

decision makers were concerned about the rising 

costs of electricity and were looking for ways to save 

The 1,140 kW ground-mounted array in 

Madera, CA. Photo credit: Borrego Solar. 

on energy. The hospital was able to achieve this 

goal through the solar installation, in addition to 

several other energy efficiency measures, such as 

lighting upgrades. 

At the start of the project, the hospital worked with an 

energy service company (ESCO) to complete energy 

efficiency upgrades and then help select the solar 

installer, Borrego Solar. Borrego Solar owns and 

maintains the PV array under a 20-year PPA with the 

hospital. Borrego Solar won the project bid through the 

ESCO and jointly presented the solar proposal to the 

CFO and Facilities Director of Madera Community 

Hospital. 

From there, the project proceeded through several 

committees before reaching the Board of Directors 

during a quarterly meeting. While these approval 

processes are familiar to an experienced installer like 

Borrego, less experienced installers will need to be 

aware of the incremental steps and not let them 

become discouraging. 

SOLAR PROJECT HIGHLIGHTS 

Date Installed October 2011 

Location Madera, California 

Size 1,140 kW 

Annual 

Production 2,183,220 kWh 

Electricity Offset 40% 

Monthly Bill 

Savings 12-15% 

Financing PPA 

Learn more at betterbuildingssolutioncenter.energy.gov 
Financing 

After considering the benefits of solar energy, Madera 

Community Hospital sought a PPA that could offer solar 

electricity at a price equal to or below the cost of 

electricity from the local utility. After incentives, the 

project was able to offer a PPA price below utility rates, 

resulting in immediate savings. 

Under the PPA with Borrego Solar, Madera Community 

Hospital buys electricity from the solar array for a preset price over the 20-year contract duration. Borrego 

Solar also worked with a financier that was able to 

collect Federal and State incentives for the system, 

including the past 1603 Treasury Grant Program and 

the California Solar Initiative performance-based 

incentive. Madera Community Hospital immediately 

began to save 12-15 percent on each monthly 

electricity bill – outperforming initial estimates. 

Additional Tips 

 Madera Community Hospital, like other active 

hospitals, exhibits a consistent 24-hour load profile 

with no convenient time to cut the typical power 

supply. Borrego worked with facilities staff to 

arrange the later-than-usual activity – the 

interconnection process took place at midnight – 

using backup generators. 

 The largest challenge from the perspective of 

Madera Community Hospital was figuring out how 

to work with state building codes for hospital 

facilities. To comply with these regulations, the solar 

installer interconnected the array to the main power 

supply at a point where it would not affect the 

emergency power supply. 

 In dry climates, solar panel maintenance becomes 

more important. In drought-stricken California, the 

panels require more frequent washing due to dust. 

However, this is no extra burden on the hospital 

because Borrego Solar owns and maintains the 

array. 

 As part of the permitting process for groundmounted arrays, the project was open for 

comments from neighborhood residents. 

Fortunately, there was no opposition and the area 

received the project very well. Now, employees and 

patients at the hospital frequently inquire how they 

can get solar on their homes, too. 

KEY TAKEAWAYS 

 Impact on operations and reliability. 

Solar developers must be able to explain 

to a non-technical audience that a solar 

installation does not interfere with the 

facility's ability to draw power from the 

grid. The impact of construction activities 

must be also be considered and, again, 

be shown to pose no risk to hospital 

operations. 

 The long-term nature of either the 

financial investment or commitment. 

The upfront cost and payback period 

(cash purchase) or long contract term 

(lease or PPA) can also be a concern. A 

hospital’s Board of Directors may feel 

exposed to various technical and financial 

risks under either arrangement. To help 

tackle these issues efficiently, it is 

important to have a person from the 

business side involved in the solar project 

development and approval process. Here 

are some of the most common questions 

the Board will want answered before 

entering into a significant purchase or 

long-term agreement: 

 What if the system breaks? 

 What if it does not produce as much 

electricity as expected? 

 What if the owner or vendor is no longer 

around? 

 What are the underlying financial 

assumptions of the PPA and what would 

change the outcome? (For example, if 

utility rates do not increase as expected) 

 What are the regulatory risks? (For 

example, changes in solar policies or 

incentives) 

 Partnering with an external, profit-driven 

company. The Board will want to know 

about the counterparties to the agreement. 

How reliable are they? What is the track 

record of delivering on commitments? 

What does the market say about them? 

Hospitals will only work with established, 

reliable partners and do not want 

entanglements, especially outside their 

core business. 

Learn more at betterbuildingssolutioncenter.energy.gov