Another Big Win for Local Solar Energy: DMEA Secures $72M in USDA Funds

Today, the U.S. Department of Agriculture (USDA) announced Delta-Montrose Electric Association (DMEA) was one of two Colorado recipients of its Powering Affordable Clean Energy (PACE) program. DMEA was selected to receive a partially forgivable $72 million loan to fund the construction of a 20-megawatt (MW) solar photovoltaic array with an additional 80 megawatt hours (MWh) of battery storage.

The array is estimated to account for approximately 10% of DMEA’s overall load and will produce enough energy to power roughly 7,000 average homes. Site details are not yet finalized, but the cooperative will own and operate the array and has set 2030 as the target for when the array will be complete and pumping energy into the local grid. The total cost of the planned array is $96 million. The USDA will forgive 40% of DMEA’s PACE loan, and the cooperative intends to seek further assistance through the U.S. Inflation Reduction Act.

Announced February 12, 2026: Delta-Montrose Electric Association is bowing out of the loan forgiveness program award that would have helped build a 20 megawatt solar array.

The project, announced in 2024, is now a no-go. Because of inflation, rising construction costs and other pressures, the numbers for the $96 million project no longer work, DMEA’s CEO Jack Johnston said. (https://www.gjsentinel.com/news/western_colorado/dmea-scraps-solar-array-plan-citing-cost-review/article_c98e8f36-821b-4b96-bf30-f256385ea0d0.html)