SOLAR FOR SCHOOLS APRIL 2013

NATIONAL SOLAR SCHOOLS MOVEMENT National movement among K-12 schools across the country to go solar More than 500 K-12 schools in 43 states have gone solar in last three years Part of larger effort by educators to: Create educational opportunities Save money Reduce carbon footprints

TAKING SCHOOLS SOLAR Wide range of effective models Every project reflects needs and goals of school Two major approaches Large vs. small Direct ownership vs. third-party ownership

SMALL SYSTEMS Small, 1-5 kW projects Installed in highly visible areas Designed to demonstrate how solar works Easy to incorporate into curriculum and activities because highly visible Often implemented by individual schools or groups of parents

EXAMPLE Illinois Solar Schools Program helps K-12 schools install 1 kW demonstration systems with online monitoring systems Since 2006 the Program has funded projects at over 220 schools

LARGE SYSTEMS Large solar installation on roof, parking lot, or open area Include multiple buildings within school district Offsets significant portion of school’s electric bill Often planned as part of large building or renovation project, included in master plan for district

EXAMPLE Milpitas School District in California installed solar parking lot canopies on 14 properties District will save $12 million on electric bills over 25-years

MODEL FOR TAKING SCHOOLS SOLAR Direct ownership Purchase solar systems outright Retain RECs and incentives See immediate savings on utility bills Must provide upfront capital to pay for system Cannot take advantage of federal and state tax incentives

EXAMPLES OF DIRECT OWNERSHIP MODELS Bake Sale Model Uses a combination of grants and fundraising to cover the entire cost of a solar system Do not sign any long-term contracts with the installer Good fit if: Proposed system is small Goal is to have a solar demonstration project Have funding opportunities/grants available Are located in wealthy community Have student body that is large and/or very active

EXAMPLES OF DIRECT OWNERSHIP MODELS Do-It-Yourself Model Fundraise the cost of the system Community members, parents, or teachers install the panels with the help of an installer Good fit if: Local installer is interested/willing to provide a discount on the system cost in exchange for help from community Community members with solar installation or electrical experience are interested in helping with the project.

EXAMPLES OF DIRECT OWNERSHIP MODELS State or Utility Solar Schools Programs Some states offer state-sponsored or utility- sponsored programs that provide schools with grants for solar systems For example: PG&E Foundation, TXU Energy, and the Illinois Clean Energy Community FoundationPG&E FoundationTXU EnergyIllinois Clean Energy Community Foundation Visit your local utility’s website or check out to see what programs are available

MODEL FOR TAKING SCHOOLS SOLAR Third-party Ownership Third-party-financed PV installations are owned and operated by another entity, usually a solar developer or its investors Can go solar with $0 upfront Allows schools to take advantage of tax credits on systems Less risk for schools, since do not own the panels Operations and maintenance included in PPA agreement

EXAMPLES OF THIRD-PARTY OWNERSHIP MODELS Community-Owned Power Purchase Agreements Similar to traditional PPAs Members of the community create a third-party entity to own the system on behalf of the school in order to take advantage of tax incentivesthird-party entity Third-party entity (made up of community members) owns and operates the solar system Members of the community can support a solar project financially while still earning a modest return on their investment.

EXAMPLES OF THIRD-PARTY OWNERSHIP MODELS Sidwell Friends School in Washington, D.C. installed 120 solar panels on gym Funded $200,000 cost of the project by inviting community members to purchase solar bonds in increments of $5,000 Bonds earn a modest rate of return for about 10 years

EXAMPLES OF THIRD-PARTY OWNERSHIP MODELS Morris Model Hybrid approach that allows a private solar developer to become the owner of the project State or local government provides the solar developer with low- cost project capital by issuing debt (such as bonds).

CONCLUSION Nationwide movement for schools to go solar Wide variety of approaches See huge enthusiasm for projects among community members, administrators, students, and teachers

QUESTIONS? Emily Stiever Program Director Community Power Network