The town of Oak Bluffs has reached agreement with Eversource that will allow work to continue on an energy storage facility in the town.

The battery storage facility will be located at 208 Edgartown-Vineyard Haven Road and will be capable of storing 14.7 megawatts. According to a memorandum of understanding signed by the town and the utility Monday, it will be the first of its kind on the Island as the technology has only recently been in use in Massachusetts. The site is located in a wellhead protection area and the Lagoon Pond watershed.

Eversource petitioned the state Department of Utilities to seek zoning exemptions for the facility. Oak Bluffs filed a motion to intervene. The MOU signed Monday will allow the project to go forward with conditions.

Included in the document is a commitment from Eversource to take measures to protect public health and safety, including a payment of $50,000 to the town to pay for the services of an emergency consultant. The company also agrees to follow permitting requirements and allow regular inspections and town oversight. The project is also expected to go before the Martha’s Vineyard Commission as a development of regional impact.

Eversource also agrees to remove the lithium-ion batteries, the power conversion system, and the step-up transformers at the company’s expense when it decommissions the storage facility.

“It’s a new project, one of the biggest of its kind, and we’re excited on a variety of levels but there’s some concerns on a variety of levels,” board chairman Brian Packish said. “This memorandum of understanding will help us have a greater comfort level to all work together to help us move the project forward.”

In other business Monday, selectmen granted an extended building permit to builder Dwayne Vought and hotel owner Leighton Collis for work on the Ginger Hotel on Kennebeck avenue. Mr. Vought expected to finish work last month, but ran into construction delays.

Selectmen voted to allow continued construction during limited hours until June 21, but they raised concerns about disruption to the area and parking availability.

“I’m really worried about how this progresses and then impacts the downtown, the parking the trucks and things of that nature,” Mr. Packish said. Selectmen also thanked Mr. Collis and Mr. Vought for investing in the dilapidated building near the center of town.

“We know this is a great project. You’re improving a hotel that didn’t have the greatest reputation,” Mike Santoro said.

Selectmen also took another step toward approving the installation of solar panels on the Oak Bluffs School roof. The project is years in the making, and panels are expected to be installed in the next year, according to town administrator Robert Whritenour. Selectmen authorized Mr. Whritenour to draft a lease agreement with the vendor Green Skies and the Cape & Vineyard Electric Cooperative.