Reading officials broke ground on a solar energy project that is expected to save about $270,000 in electricity costs by 2027.

The project is part of the city’s plans to modernize facilities, reduce energy costs and move toward its goal of achieving 100% renewable energy by 2050.

The project, in partnership with Schneider Electric, will install 3,180 solar panels at the public works campus and 1,075 panels at the Cedar Street parking lot near City Hall.

When the project is completed, the solar canopies are expected to fully offset the electricity usage at City Hall and the Public Works Administration and garage, officials say.

It is projected to cut annual electricity costs at those facilities from $268,550 in 2025 to zero by 2027.

Over 20 years, officials said the overall Guaranteed Energy Savings Act project is expected to generate an estimated $13.5 million return on investment, with savings likely to increase as energy costs continue to rise.

“Today’s groundbreaking represents another important step forward for the city of Reading,” Mayor Eddie Moran said in an announcement of the groundbreaking. “These projects are helping us lower costs, stabilize our energy budget, reduce air pollution and make city facilities more sustainable and efficient for years to come.”

In addition to reducing energy costs, the project is expected to:

• Reduce air pollution.

• Help stabilize the city’s long-term energy budget.

• Reduce exposure to volatile energy markets.

• Protect city vehicles from extreme weather events.

• Reduce heat island effects in parking lots by providing shade.

The project also allows the city to use existing parking lots to produce renewable energy while improving public infrastructure.

City Sustainability Manager Bethany Ayers Fisher said the investment positions Reading for a stronger and more sustainable future.

“Investing in local renewable energy infrastructure makes good fiscal sense,” Ayers Fisher said. “These projects will help stabilize our operational budget, reduce pollution, and allow us to continue investing in our community.”

The solar project is part of the city’s larger Guaranteed Energy Savings Act initiative, which has already included upgrades to more than 3,200 LED lights across municipal buildings, parks, recreation centers and public spaces throughout the city.

The city also has completed HVAC upgrades, solar lighting installations, insulation improvements and upgraded sports lighting technology at several facilities and parks.