SWAMPSCOTT — A proposed solar canopy project at Swampscott High School gained momentum Thursday night, as new cost estimates and potential state funding opportunities eased earlier concerns from the Finance Committee about its long-term value. 

In a previous meeting, committee members voted to approve a capital plan that left the solar canopy project out — pushing it back to a later year. In what many town officials have acknowledged to be a difficult series of budget years, they cited uncertainty around how long it would take for the town to see a return on its investment. 

But after hearing from Facilities Director Max Kasper with updated projections and a breakdown of potential savings, several members signaled they were more comfortable moving forward. 

“We weren’t necessarily against the project, but we didn’t feel we could state what an expected return on investment was,” Finance Committee Chair Eric Hartmann said. “We specifically said we’d be open to revisiting that vote if we were able to talk to you and get comfortable with some of those facts.” 

The project, which would install solar canopies over the high school parking lot, is being considered as part of the town’s broader capital planning and climate goals. Kasper said the site could support a system as large as 600 kilowatts, with rough cost estimates reaching up to $3.3 million depending on the final scope, which would be determined after the design phase. 

A key factor in the project’s viability is access to state funding. Swampscott, designated as a “climate leader” community, is eligible to apply for up to $150,000 in design funding and a $1 million construction grant within a three-year window. 

“It technically is a competitive grant,” Kasper said. “It’s not something that we are definitely going to get, but this is certainly a project that fits the mold.” 

Even without a guaranteed grant award, committee members were encouraged by projections showing that the system could generate significant annual savings on electricity costs, along with additional revenue through state incentive programs. 

In one scenario discussed, the town’s upfront cost after grants could be reduced to roughly $650,000, with first-year energy savings estimated at around $80,000. 

Based on those figures, committee members suggested the project could begin paying for itself much sooner than initially expected. 

“It almost feels like we might be cash flow positive in year one,” Hartmann said. 

While Town Administrator Nick Connors pointed out that the figures associated with the final cost and interest are not yet exact, Hartmann still said the overall financial outlook of the project was far better than the committee had initially thought. 

“It seems like a positive data point,” he said. “If the actual cash out the door to the town from a debt service is only going to go up by, say, 50, 60 grand, and our electric bills are going to go down by $80,000, and we’re going to get a $10,000 incentive … I’d sign up for that today. 

Kasper also noted that the condition of the high school parking lot would need to be addressed in the coming years, regardless, which he said strengthens the case for pairing that work with a solar installation. 

The Finance Committee ultimately agreed to recommend adding $300,000 for solar canopy design to their recommended capital plan for Town Meeting, contingent on receiving state grant funding which is expected to cover roughly half the cost of design. 

Continuing their review, the committee also voted to delay a $3.5 million sewer borrowing request until December, following suit with the Select Board, which made a similar vote on Monday evening. 

The delay stems from ongoing questions about the town’s practice of funding repairs to privately owned sewer laterals — pipes that connect individual homes to the main sewer system — as part of its broader effort to reduce pollution entering local waterways, particularly at Stacey’s Brook. 

The ongoing sewer repairs have been part of a long-term strategy to meet environmental requirements under a federal consent decree concerning bacterial contamination in the Stacey’s Brook and King’s Beach area. Town leaders have opted for a strategy that involves addressing sewer laterals early, to avoid even more costly fixes down the line. 

Hartmann and Connors discussed information that came up during Monday night’s Select Board meeting, where Department of Public Works Director Gino Cresta sent a message to say that the next installment of sewer funding could be held off until December Town Meeting, as the town takes a closer look at the funding structure. 

Finance Committee member Liz Smith, who previously served as the Chair of the Water and Sewer Infrastructure Advisory Committee, said that a brief delay in funding would likely not impact the short-term work of a project that has been nearly 10 years in the making. 

“My understanding is that with the work starting this summer for Phase 2B, I don’t know how many laterals are in that plan, but that work would be starting based on last year’s authorization … so what’s really being pushed is any future work and future borrowing,” she said. 

Smith and other members agreed that they wanted more detailed information before committing to that additional borrowing, particularly around how much of the work benefits individual property owners and whether a betterment or cost-sharing model should be considered. 

Ultimately, the Finance Committee voted unanimously to approve the Capital Plan article for the Town Meeting warrant with the changes they discussed, including the solar canopy design and excluding the sewer infrastructure funding — for now.