Township High School District 113 is embarking on an ambitious project to add solar panels to its school buildings. Motivated by federal incentives for renewable energy, carbon footprint reduction, and long-term financial savings, the district is committed to embracing sustainable practices as soon as possible.
The Board of Education for the high school district recently approved the $9.94 million solar panel roof installation project for Deerfield and Highland Park high schools. By harnessing the power of solar energy, the district aims to recoup 50% of the total project cost within the first two years through energy incentives and rebates.
Ali Mehanti, the district’s assistant superintendent for finance, highlights the significance of this endeavor. “Looking at the board’s goals for reducing our carbon footprint, it was important to take advantage of the substantial incentives available,” he stated.
One of the primary sources of incentives is the Inflation Reduction Act, which entitles the district to a 30% reimbursement of the project’s total cost, amounting to approximately $2.98 million after the first year of installation. Additionally, rebates from the electric utility ComEd totaling around $672,000 and the federal Renewable Energy Credit (REC) program contribute to the incentives package. The district anticipates receiving $2.35 million from the REC incentive over a period of seven years, based on the size of its electrical system.
By leveraging these incentives, Mehanti predicts that the project will be fully paid off within 13 years. The solar panels are expected to offset nearly 25% of the combined school electricity usage, resulting in approximately $200,000 in utility cost savings during the first year alone.
Over time, these savings will accumulate, projecting annual utility savings of over $300,000 by year 11 and exceeding $500,000 by year 27. By looking at the 20-year bond perspective, Mehanti concludes that the project will essentially be cost-free after 12 years, with ongoing savings thereafter. Cumulatively, the district expects to save a total of $16.9 million over 30 years, including all three rebates.
As the only school buildings in the district, Deerfield and Highland Park high schools will be pioneers in utilizing solar electricity. Performance Services, a reputable installation provider, has been selected for the installation, with plans to execute the project during the summer of 2024.
FAQ
1. What are the main motivators for Township High School District 113 to install solar panels?
The main motivators are federal incentives for renewable energy, carbon footprint reduction, and long-term financial savings.
2. How much of the total project cost does the district expect to recoup within the first two years?
The district expects to recoup 50% of the total project cost within the first two years.
3. What is the primary incentive source for the district?
The primary incentive source is the Inflation Reduction Act, through which the district is eligible to receive 30% of the total project cost back after the first year of installation.
4. What percentage of the school electricity usage will be offset by the solar panels?
Nearly 25% of the combined school electricity usage will be offset by the solar panels.
5. How much total cumulative savings does the district expect over 30 years?
The district expects total cumulative savings of $16.9 million over 30 years, including all three rebates.
6. When will the installation of the solar panels take place?
The installation is scheduled to occur during the summer of 2024.
