U.S. Department of Agriculture Rural Development Utah State Director Michele Weaver on March 26 announced USDA is investing $76.5 million to expand the Red Mesa Tapaha Solar Farm in Utah.
The Navajo Tribal Utility Authority will use the USDA loan funds to purchase single-axis tracking solar arrays, allowing for maximum energy absorption. Projected revenues will help stabilize electric rates, connect unserved families to electricity, enable broadband access and create permanent employment for two to three people, USDA noted.
Construction of the expansion is expected to provide 220 local construction jobs and will provide clean energy to power approximately 36,000 homes, farms and businesses.
“Since 2018, NTUA has been working on renewable energy generation with the purpose of meeting the unmet multi-utility needs of the Navajo Nation,” said NTUA General Manager Walter Haase.
“With the exceed proceeds derived from renewable energy development, NTUA’s goal is to create new jobs, boost the local economy, keep residential electric rates stable and extend electricity to the homes without,” he said.
“Once electricity reaches a home, water services and broadband internet can be extended; therefore, renewable energy development is certainly one solution to improving the standard of life on the Navajo Nation,” Haase said.
As the Navajo Nation’s utility provider, NTUA has a mission to provide basic utility services throughout the Navajo Nation, and NTUA is authorized to develop energy generation projects in support of this mission, including solar energy development.
The location of the Navajo Nation (its latitude, sun radiance and elevation) makes it extremely attractive for the development of solar energy projects that are both large- and small-scale. The large-scale projects provide opportunities to create clean energy for export to neighboring utilities, while benefitting the Navajo Nation and NTUA’s ratepayers.
The Red Mesa Tapaha Solar Farm is NTUA’s third large-scale solar project, located on 550 acres in the Red Mesa Chapter of the Navajo Nation, within San Juan County, Utah.
Renewable energy from the project serves three Chapters of the Navajo Nation (Utah and Arizona) and exports energy to thirteen communities in Utah and two in California.
The facility, which was placed into service April 2023, produces 72 MW of clean energy. Construction of the project created 330 jobs, with over 90% of the workforce being Navajo.
Revenues from the project will help stabilize electric rates and provide funds to connect unserved Navajo families to the electric grid.
The project will also contribute 50 scholarships and 25 paid internships to the local Red Mesa Navajo community over the life of the project.
Construction of the project enabled broadband access in the community, and generated tax revenue and lease revenue for the Navajo tribal government.
The Department of Agriculture’s Rural Utilities Service is an essential partner in NTUA’s mission, providing essential financing for NTUA’s utility infrastructure, NTUA noted.
RUS financing for the Red Mesa Tapaha Solar Project is a critical element of making the clean energy generated from the project competitive and affordable.
USDA makes funding available for the Electric Infrastructure Loan and Loan Guarantee Program through regular appropriations from Congress. It provides funding to utility providers and electric cooperatives to build and improve electric infrastructure, smart-grid technologies and renewable energy systems.
USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, tribal and high-poverty areas.
