Solar vitality in faculties is within the information proper now. Between federal grants and tax credit from the Inflation Reduction Act that encourage photo voltaic, to state proposals like House Bill 1032, “Solar for Schools,” which desires to create a state grant to cowl as much as 50 p.c of the associated fee for photo voltaic vitality growth in Pennsylvania faculty districts, photo voltaic has a whole lot of buzz.
Many taxpayers agree that it’s good coverage for Pennsylvania faculty districts to assessment their general vitality consumption, scale back prices, and reduce worth fluctuations. Solar could be an possibility in a complete technique to cut back vitality prices, however it isn’t the one answer. Solar supporters will level to sturdy photo voltaic development in California. Solar is rising in California as a result of the typical price of economic vitality per kilowatt hour (kWh) is $0.24, 84 p.c increased than the nationwide common. The common business fee in Pennsylvania is $0.11/kWh, ten p.c decrease than the nationwide common. Pennsylvania ranks second in vitality exports, so our prices have remained decrease than the nationwide common for the previous 25 years.
When exploring a complete vitality technique for college services, Pennsylvania faculty districts ought to begin with consumption, not supply. A district should work with a certified vitality service contractor to carry out a facility evaluation, which features a assessment of the age of services, helpful lifetime of upkeep techniques, structural evaluation, and vitality consumption. vitality. This information helps decide the best way to finest prioritize facility enhancements and investments as techniques change into much less environment friendly or out of date. Districts must be cautious of firms that appear to have a predetermined answer. Every district is completely different and photo voltaic is just not one dimension suits all.
Here are key questions that each district ought to ask:
- What are the sources of vitality used within the district? (Electricity, coal, pure fuel, propane, biomass, and so on.)
- What is the price of that vitality per kilowatt hour and the way has that fee modified over time?
- How previous are the present techniques and applied sciences that use these completely different vitality sources?
- Can the techniques get replaced by extra energy-efficient applied sciences?
These questions will assist establish the suitable path for any district trying to management vitality prices and scale back local weather affect. Remember this fundamental reality: the most affordable and greenest type of vitality is vitality that has by no means been used up. Avoiding vitality consumption reduces greenhouse fuel emissions from all vitality sources.
Solar choices for college districts
With photo voltaic, districts have the choice of proudly owning the panels or working with an organization to lease the infrastructure. Both choices have advantages and downsides. If the district owns the panels, they keep management of the property and personal all of the vitality produced. They can promote extra vitality again to the grid for added revenue. The largest profit is in the summertime months when the constructing has the bottom degree of use and the photo voltaic panels have the best manufacturing fee. The district may qualify for a number of grants and tax credit to assist defray the price of a system. However, the district is answerable for all prices of putting in and sustaining the system.
The leasing possibility is finished by an organization by way of a Solar Power Purchase Agreement (PPA). These agreements embrace a contracted kWh worth over a long run of years wherein the district agrees to pay the photo voltaic firm for all of the vitality generated by the panels, together with the vitality they don’t use. . The district would wish to spend a considerable amount of capital, search grant funding, or subject a bond for the photo voltaic array. In addition, the photo voltaic supplier required the district to improve all HVAC techniques, convert to LED lighting, and maximize facility weatherization to make these techniques extra environment friendly. These upgrades be sure that faculty services eat much less general vitality and maximize the corporate’s photo voltaic advantages.
In a PPA, the district doesn’t obtain any income from the extra vitality generated by the photo voltaic panels. Instead, the rental firm has the power to promote unused vitality to the grid, making a revenue in a system that generates energy on publicly owned land. The PPA additionally requires the district to present all tax credit or different advantages the college receives to the photo voltaic firm. This extra income can be utilized by the district to assist pay for added facility enhancements, increase salaries, offset native property taxes, and so on., however it goes immediately into the pockets of the businesses. in photo voltaic.
To be clear, photo voltaic is just not a nasty deal for PA faculties. The secret is how a district adopts and implements photo voltaic. The finest deal for faculties (and taxpayers) is the place the district retains extra possession and management of the photo voltaic array and property or works with an organization that does not entice them in a predatory PPA. The largest, and most necessary advantages are when the college receives income from the surplus photo voltaic vitality produced and long-term utility financial savings whereas decreasing greenhouse fuel emissions. These funds can be utilized to immediately profit the college, lecturers, college students, and taxpayers.
Katie Hetherington Cunfer is the Director of Government Operations at SitelogIQ.