Costs Savings

 

School districts are large energy consumers, and energy costs consume a large share of school district budgets. Transitioning the school district to 100% clean energy will save resources over time, and through creative finance mechanisms, such as solar power purchase agreements, the district will likely save money right away.

 

Shifting American K-12 schools to 100% clean energy would reduce the same amount of climate pollution as taking 1 in every 7 passenger cars off the road.

 

Shifting the Granite School District to clean energy creates the opportunity for the district to pursue pathways to affordably finance 100% clean energy over two decades. Our district spends a lot of money on energy----we propose investing it in a way that transitions us to 100% clean energy over two decades. 

 

Solar is cheaper than ever. The cost of solar panels is one-third of what it was just 10 years ago.

 

State and local governments invest more capital in school facilities than in any other infrastructure sector outside of transportation. It’s important that we seize the opportunity to help steer these investments into schools that run on clean energy.

 

Finance Pathways

 

Often schools are concerned with the costs to realize a transition to clean energy. However, Utah has a suite of incentives and grant programs to make renewable energy even more affordable and accessible to schools. Here is a summary of the different opportunities that exist:

 

Finance solar with third party financing

• 90% of solar installed in schools in the last three years has been financed with partners looking for tax shelters and are willing to split the federal solar tax credit with the district. This reduces the upfront cost of the system. This is referred to as a Solar Power Agreement or SPA.

• In 2010, Utah’s state legislature allowed for solar third-party purchase agreements called power purchase agreements (PPA). 

• Kearns County School District in California entered into a PPA that is saving it $17 million dollars over 25 years. We can provide more examples. 

• In Utah, the Natural History Museum holds a PPA with sPower (Sustainable Power Group), which makes it easier for the building to alleviate cost burdens.
   

Finance energy efficiency and other upgrades through Energy Savings Performance Contracting (ESPC’s)

• An energy savings performance contract (ESPC) is a model where an Energy Services Company (ESCO) achieves energy savings at a property or portfolio of properties as a service. This model guarantees savings for a set period of time in exchange for payment from the energy cost savings. 

• Typically ESCOs offer a service package that includes the design and engineering, financing, installation and maintenance of the energy infrastructure retrofit for the public entity (such as public schools)

• This is a way to advance energy improvements without impacting the district’s budget by using future energy savings to pay for energy efficiency and even some  facility upgrades. 

• With this approach, a third party called an energy service company (ESCO) will evaluate current energy use and propose turnkey efficiency and conservation measures that will save money and provide an assurance of energy saved. 

• The ESCO pays for the upgrades and recovers its costs through the money that is saved by the energy efficiency measures themselves.

• This is a very common practice by districts across  the country, and some well-known companies carry out this work in addition to local contractors.. 

• Utah Code 11-44 requires that the use of ESCOs in requires:

  • annual savings must exceed annual project repayment cost;

  • guarantees are required to ensure savings; and,

  • annual reporting is required to verify savings are being realized

 

Commercial Property Assessed Clean Energy (CPACE) 

• Finance mechanism available through state statute that affords commercial and industrial property owners support for energy efficiency, renewable energy, and water conservation projects. 

• Utah’s Office of Energy Development would act as the liaison between the financing resources, the contractors and the school district.

 

Grants

(Other local finance options)

• Utah State Facility Energy Efficiency Fund;

• Utah Revolving Loan Fund; 

• Blue Sky Grants from Rocky Mountain Power (RMP). 

  • In 2017, RMP awarded nearly $800,000 to three school solar projects -- North Sanpete Middle School, DaVinci Academy of Science and Arts, and Vernal Area Chamber of Commerce.  The DaVinci Academy of Science and Arts serves almost 500 students; they received 163,800 to install a 65-kW solar system, which provides 13% of the school’s energy needs each year.  More projects funded by RMP’s Blue Sky Grant and their benefits can be at Blue Sky Community Projects (https://www.rockymountainpower.net/community/blue-sky-projects.html)