Mar. 28—The planned solar array at the Knox County Regional Airport in Owls Head, now stalled over an unpaid bill unrelated to the project, appeared doomed as soon as the airport signed the contract to build it with Pine Tree Solar last June, according to those familiar with the project.
The airport terminated the $1.36 million contract on March 15 after issuing several default notices citing building delays, financial questions and the departure of Pine Tree Solar’s project manager. The project was to be substantially completed by Jan. 4 but was way behind, Jeremy Shaw, the airport’s manager, said. The airport also faces a May 11 deadline to use the $17.9 million it had received through the federal CARES Act in 2020, part of which is funding the airport solar array, he said.
“As soon as the contract was awarded to them, we had phones basically ringing off the hook of disgruntled customers warning us about Pine Tree’s business practices,” Shaw said. “We have been very closely monitoring them.”
Key components of the airport array are being held by the distributor because Pine Tree Solar hasn’t paid its bills for a separate project and customer, Shaw said. The distributor, Krannich Solar East of New Jersey, is not releasing the materials despite having already received $240,000 for the airport project’s 844 solar panels, according to Shaw.
Project materials have been delayed because of the company’s outstanding balances from work done on different solar installations, Pine Tree Solar’s former Project Manager James Weston said in an affidavit for the airport obtained by the Bangor Daily News.
The affidavit also said Pine Tree Solar workers were not paid in a timely manner for work performed on the Knox County project and that the company inflated a payment request.
Krannich Solar East said Monday it still is waiting to be paid for the money owed, and it had been contacted by Pine Tree Solar owner Michael Griggs that same day saying he will pay the debt. Krannich Solar sales manager Paul Butterly said he hopes the payment is made this week, so he can get the panels shipped out of the warehouse where they are tying up space. He hopes to ship them by April 1. He did not know how much was owed.
The final continuing default and termination notice from Knox County’s law firm to Griggs on March 12 also said Pine Tree Solar breached the warranty for the project regarding its ability to continue as a business.
“Pine Tree is simply not able to demonstrate that it remains financially solvent,” the notice reads.
Aaron Fethke, the attorney for Griggs who is based in Searsport, did not respond to a request from the BDN on Wednesday for comment on the status of the airport situation and his client.
The panels were supposed to arrive by early December, and, when they didn’t and work slowed, airport manager Shaw became concerned about completing the 360 kilowatt solar project.
Pine Tree Solar has faced a pattern of complaints from customers and suppliers over the past couple years. Already the subject of two lawsuits and complaints to authorities over delayed installations or refunds, the company in February ran afoul of the state’s revenue department. Its registration certificate was revoked in February for not complying with the state’s sales and use tax law.
Pine Tree Solar also defaulted on 18 different auto loans worth $260,000 through Camden National Bank, according to a lawsuit filed by the bank in January.
Shaw, who has been the point person for the project, worked with the county’s legal team to add protections for the project once they heard complaints about the company. They included performance bonds, payments bonds, a surety firm to take financial responsibility for the project and a third-party payer.
“We took extra steps should this not work out that we would be covered,” he said. “We will not lose any money on this.”
Shaw said Pine Tree Solar also owes $1,000 per day in damages from Jan. 5 through March 15 for not substantially completing the project on time.
An outside company representing the airport plans to meet with two other solar companies this week that had bid on the project to get it going again, Shaw said. They are Maine Commercial Solar and ComLabs LLC. One option would be to sign a new contract on which Pine Tree Solar does not appear to possibly get around its debt issue with the distributor, Shaw said.
ReVision Energy was the original winner of the contract, but it was unable to meet certain provisions of the federal “Buy American Act,” Shaw said. The act requires 60 percent of all parts of the project to be sourced in the United States.
It will not be possible to get fully U.S.-made “Tier 1 solar panels,” the only kind ReVision wants to sell, until early 2025, James Manzer, director of commercial sales at ReVision Energy, said. They have the highest quality control and quality assurance rating, he said. The company was concerned that it could not meet the project’s schedule because of that and bowed out of the project.
“We ultimately parted on the project in amicable terms and have been actively conversing with the County regarding future partnership and project opportunities,” he said in an email.
Pine Tree Solar was able to get approvals for its parts sourcing to meet the federal requirements, but it did not use Tier 1 panels, Shaw said. With the Buy American approvals already in hand for the panels at the distributor, the other two solar companies under consideration to take over the project will not have to go through the detailed federal process again.
The project also has an interconnection agreement with Central Maine Power in place, so whichever solar contractor finishes the project will only need to get a new state electrical permit, Shaw said.
“Everything else is already in place,” he said, noting the project could be completed quickly.
This isn’t the first time the airport ran into problems with plans for a solar project. The initial project planned in 2020 called for an $11 million investment to create a 5 megawatt solar array, more than 10 times larger than the current one. Shaw said it was planned for 56 acres of land behind the transportation museum. When the airport conducted an environmental analysis, it found so many wetlands and vernal pools that it had to scrap the project.
The airport found another large property off of Route 17, but the Federal Aviation Administration said it could not use federal funds for a solar array that was not on airport property. The airport found a few acres on its property near the intersection of Ash Point Drive and Terminal Lane on which to build the currently planned solar array.
After ReVision Energy stepped back from the smaller contract, Pine Tree Solar was next on the list of four bidders by price, Shaw said.
“Pine Tree wasn’t the choice we wanted. It was the choice we had,” he said.
Shaw said the project could be completed in a couple months if everything falls into place. But he won’t be there to see it up and running. He is leaving his job as airport manager on Sunday, to be replaced temporarily by former airport manager Jeffrey Northgraves.
“Yes, I’ve had enough,” Shaw said.
Lori Valigra is an investigative environment reporter for the BDN’s Maine Focus team. She may be reached at [email protected]. Support for this reporting is provided by the Unity Foundation and donations by BDN readers.
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