An abandoned airstrip that hasn't welcomed planes in decades could one day be home to a solar farm.

The city of Nevada City is considering a $6.5 million project to build a configuration of solar panels at the old Nevada City airport off North Bloomfield Road that would dwarf all other solar installations in the county.

The proposed system would have a maximum capacity of 1,000 kilowatts, which is equal to 1,340 horsepower. At that rate, it could power nearly 17,000 60-watt light bulbs at once.

Other solar energy installations on city property have a capacity of about 10 kilowatts.

The airstrip — an unpaved, roughly cross-shaped clearing slightly overgrown with trees — has been out of commission since shortly after World War II, according to Nevada City Engineer William Falconi. At times, it has been co-opted as a motocross course, and it now serves as a storage grounds for miscellaneous city equipment.

City officials worked with Chevron Energy, a division of oil giant Chevron Corp., on a preliminary feasibility study earlier this month at no cost to the city. They found the system would have virtually no negative effect on the environment and would not be visible from surrounding residences, Falconi wrote in a memo to the City Council.

Council members reviewed the project at their meeting last week, but made no decisions on it.

Should the city move forward, it can contract with Chevron to draw up design plans for $16,000.

Officials aren't moving forward yet, said City Manager Gene Albaugh. They need the financial stars to align first.

First, the city is working on applying for a $3 million grant from the California Energy Commission. That would help cover the initial investment costs.

Second, the city is waiting to see if the California Public Utilities Commission will change payback rates to make large-scale solar operations worth the investment.

Energy is worth about 14 cents per kilowatt hour, Falconi wrote, although the price fluctuates depending on the time of day and season. PG&E pays contributors more for energy during peak hours, which are usually during the day and in summer months.

At those rates, the city could bring in more than $1 million yearly by selling energy from the proposed solar system.

The problem is PG&E does not pay the full per-kilowatt-hour rate; about half is discounted for transmission costs.

The lower rate would not generate enough revenue to pay capital costs and interest rates, Falconi wrote.

The PUC could make it possible if it increases what's called a “feed-in tariff.”

Feed-in tariffs have been used for years in Europe as incentives for people and businesses to install solar generators. Rather than having the government subsidize solar construction, other customers of utility companies pay a little more on their bill each month.

The extra revenue allows the utility company to buy back energy from customers with solar panels at a higher-than-market rate.

Feed-in tariffs already are in place in California, but the rate is not high enough to make large-scale solar production profitable, Albaugh said.

Nevada City already has solar installations atop City Hall, at Pioneer Park and at the city's storage yard, but those produce only enough to defray the city's energy bill, Albaugh said.

Falconi and Albaugh said the project will likely be in discussion for years to come before residents might expect a productive farm.

To contact Staff Writer Michelle Rindels, e-mail mrindels@theunion.com or call (530) 477-4247.