How Do Schools Finance Solar (and Why)?
More and more educational institutions are going solar, which is great news! Learn more about the unique needs of schools/districts looking to go solar and the benefits of solar panels for schools in this article.
But the question is – how do you pay for your own school’s PV system?
Whereas a typical residential solar installation might be within financial reach of many homeowners, the average school likely doesn’t have enough cash to pay for a new PV system entirely out-of-pocket – at least not any system large enough to offset a significant portion of that school’s total energy spending.
Fortunately, there exist financing options to help make the technology more affordable:
With solar loans, you receive the necessary money upfront to pay for your PV installation. Thereafter, you use your monthly savings to pay down the loan balance until the PV system is yours, with most projects breaking even in about 7-10 years. Because your monthly utility bill savings are designed to always exceed your monthly loan payments, you’re never actually paying directly out-of-pocket.
With solar leases and power purchase agreement (PPA’s), you’re basically renting your PV system and paying for the solar power generated (or consumed). Similar to solar loans, your monthly leasing payments are structured to be less than your monthly savings. As a result, your energy costs shrink – as does your school’s carbon footprint.
In addition, there are also green incentives that can help bring down the upfront and total cost of installing solar panels for school buildings even more:
The Federal Investment Tax Credit (ITC) allows solar customers to claim a 26% “credit” on their next tax bill with the IRS. After applying for this incentive, your entire PV system essentially becomes 26% cheaper
Most states offer net energy metering (NEM), which allows you to feed excess solar power back into the grid in exchange for utility credits that you can apply to future electricity statements
Some states offer solar rebates (i.e. cash back) for those who install PV panels on their properties. Other states allow you to generate solar renewable energy credits (SRECs) that you can sell on the open market
And remember that these financing options and incentives are in addition to the daily, monthly, and lifetime savings that your solar PV system generates once it becomes operational.
How Can I Bring Solar to My School?
It’s a lot easier than you think – especially when you partner with PV professionals who have experience helping schools go solar, save money, and shrink their carbon footprint.
To learn more about our approach to solar project development for schools and other educational stakeholders, request a free property inspection today.