On July 10, 2024, the Pennsylvania state legislature made a significant leap toward a sustainable future in Pennsylvania by passing a bill to support the Solar for Schools Grant Program (HB1032). This initiative aims to make solar energy more accessible to schools across the state.
Exact Solar is thrilled to see Pennsylvania taking this step in the right direction and stands in support of all the amazing nonprofits that made it happen, like:
With $25 million allocated for this year, the program is set to fund up to 50% of solar projects for eligible schools, including K-12 public schools, charter schools, and community colleges. The bill prioritizes schools in areas with recent coal plant closures and those serving low-income communities.
However, the program has specific requirements that schools and installers need to know, which we’ll cover in-depth below.
This program offers both opportunities and challenges for schools and solar installers. While the funding can significantly offset the cost of installing a solar system, the competitive nature of grant applications and the intricacies of the Separations Act deserve careful navigation.
The guidelines are expected to be released by mid-to-late October, so schools are encouraged to start preparing their proposals and designs early to ensure they are ready to secure some of the limited funding that’s available.
Why Schools Should Consider Solar Energy
Energy costs are the highest operating cost for schools after staffing (fluorescent lights at athletic events and in cafeterias aren’t cheap to operate) and have risen 40-50% in the last few years. Investing in solar energy can help schools dramatically cut down their energy bills and balance their budgets.
Almost 5% of Pennsylvania schools have now gone solar and are offsetting 65 to 110% of their energy bills. That money is now being better used to fund student programs and staff salaries rather than being handed to a power company each month.
Better yet, because of the Inflation Reduction Act, tax-exempt entities like schools are now eligible to receive a 30% tax credit back on their total system cost in the year after they receive permission to operate their solar system. This is known as “elective pay” and means that if schools invest in solar, even if their system is financed, they may be eligible to receive a budget-boosting lump sum payment from the IRS the year after building a system.
If you’d like to learn more about how elective pay works, we’ve written an in-depth guide to tax credits for commercial entities and nonprofits that you can find at the link below:
The IRA’s Tax Benefits for Commercial Solar
If your school is eligible for the new Solar for Schools funding, up to 50% of your project costs for installing a solar system could be covered.
To summarize, this means that:
- If you’re eligible for Solar for Schools, the grant will cover half the cost of a solar system for your school
- Your school will receive a check as direct payment from the IRS for 30% of the total project cost in the year after you receive permission to operate your system
- It’s very likely that 65 to 100% of your school’s energy costs will be covered by the solar system after it’s installed
If eligible for Solar for Schools, your school can get 80% of the total project costs covered. With only 20% of the cost remaining, if you’ve financed with a reputable installer, it should be only a few years before your system pays for itself!
How Schools Can Claim the Solar Grant
We’re very excited about Solar for Schools and can’t wait to help PA schools go solar. However, there are some key things to note (and much that will still be unknown until the official guidelines are released in October).
We’ll stay on the cutting edge and make sure we update our knowledge to give you a clear path forward when the time comes, but until then, here’s what we know:
- Who it’s for: The bill is designed to distribute funding equally across three regions in Pennsylvania (defined by population density).
- Who’s at the top of the list: Priority will be given to schools within 50 miles of where coal plants have recently closed (also known as ‘energy communities’) and schools serving low-income communities.
- Requirements: Projects must comply with either the Separations Act or the Guaranteed Energy Savings Act
- The Guaranteed Energy Savings Act (GESA): Under GESA, schools can contract with pre-selected contractors who have a track record of making accurate energy savings claims and can guarantee energy savings going forward.
- The Separations Act: Under the Separations Act (specific to Pennsylvania public projects), the entity conducting the site assessment or designing the system must be different from the solar system installer. Schools that elect to build a solar system with a GESA contractor may not be subject to The Separations Act, but we’re waiting for the October guidelines to be released to confirm this.
- Installers: The actual installation of the solar systems must be carried out by a firm other than the one that conducted the site assessment and designed the system.
We recommend checking out Generation180’s Pennsylvania Solar for Schools page and consulting a member of our team in the coming months. These resources will keep you updated on the latest changes in the legislation and get you application-ready when the time comes!
How Exact Solar Can Help Your School
Exact Solar has over 19 years of experience navigating the complex world of solar contracting for tax-exempt entities like schools. We’re also one of Pennsylvania’s most highly reviewed solar contractors, with over 400 verified five-star reviews. We’ve built solar systems on several schools in our area.
Below, you will find a few examples of the schools we’ve worked with.
ASPIRA Bilingual Cyber Charter School
We put the finishing touches on this system earlier this year and are very proud of it.
This installation, in particular, is near and dear to our hearts. Although the system we’ve built here doesn’t power the school itself, what it does power is very unique.
ASPIRA’s new solar system powers a greenhouse and two grow towers on-site. The produce grown within the greenhouse will be prepared and served to staff and parents by students in an on-site “restaurant.” ASPIRA will also send students to farmer’s markets with produce to fundraise to teach them about entrepreneurship.
Sandy Run Middle School
Sandy Run Middle School put out a public bid for a solar system, and Exact Solar won the contract. We built a 280 kW ballasted roof-mounted system (“ballasted,” meaning that there are no points of rooftop penetration).
This system now offsets most of Sandy Run Middle School’s electricity needs, freeing up their budget for student programs, staff salaries, and athletics.
If you’d like to learn more about ballasted systems and why they don’t need to penetrate the roof, we’ve written in-depth about them in the case study of the system we built on our office and in the case study of the system we built for Snipes Farm.
Exact Solar Is the Perfect Installation Partner for Schools
With over 19 years of experience navigating the intricate contracting requirements that schools face, Exact Solar is the ideal partner for any institution looking to transition to solar energy. In addition to the schools mentioned above, we’ve successfully installed solar systems for:
- Holland Middle School
- Newtown High School
- Truman High School
We’re excited to collaborate with your school’s faculty to explore how solar can benefit your campus. Whether you’re ready to take the next step or simply have questions about the process, schedule a free consultation with us today. Our team of seasoned solar experts are here to guide you every step of the way.