BETHLEHEM The school district could soon be running about 80 percent of its energy using solar panels. But, as New York tax credit benefits for installing solar panels end at the start of 2016, the district will have to move quickly.
If the plan goes through, the district will receive a 30 percent tax credit. An additional New York State Energy Research and Development Authority incentive program would save the district $6.5 million over 25 years.
A solar provider has been chosen in SunEdison, yet a location for the solar panels remains to be chosen. The solar panels can be placed at any location that lies within the school district and does not have to be on school property. About 12 to 15 acres of land is needed for the solar panels and coordinating building.
Zoning for the placement of solar panels would need to be approved by the town, all in the next month, before Dec. 31 for the district to receive the full incentive. The system itself must be in operation by the end of 2016.
At the Thursday, Nov. 5 School Board meeting, Director of Operations of Bethlehem Central School District Gregg Nolte and Jon Hammer of Four Corners Energy, the consultant on the project, presented the districts solar plans thus far. Nolte is co-chair of the district’s Green Team and chair of the energy component.
No startup costs are associated with the project, as part of the Power Purchase Agreement (PPA) with the developer. The PPA is a legal agreement with the district for an agreed upon 25 years.
According to Nolte, it is to the benefit of the developer to take part in this arrangement, as they stand to receive greater payment in the future for large amount of energy the solar panels are set to produce.
“You do have to watch when you make contracts with these guys because they are going to try to get every penny they can out of you, but we should be able to create a contract that’s pretty much a win,” said Hammer.
While the plan to move to solar seemed an obvious choice for board members, a potential obstacle lies in creating a Purchase Power Agreement with the developer, as the developer will aim to reap as much benefit from this agreement as possible. According to School Board President Matt Downey, the district’s litigators will aim to make sure the agreement is favorable to the district.
In August, Nolte chose Four Corners Energy as a consultant and in August, Four Corners helped Nolte review bids of nine developers. Four Corners has worked with other school districts and municipalities in the past.
The district already has a small solar panel display at the Bethlehem Middle School through a NYSERDA grant given in 2002.
The project will continue to be discussed at future board meetings as well as at Bethlehem Zoning Board meetings, once a location is chosen.
There was no mention of opting with Monolith Solar for the panels, which plans to build its new headquarters at the Slingerlands Vista Technology Park.
This fall, the town installed solar panels at the former town clay mine site. The panels were installed at no initial cost from the town through a partnership with the New York State Energy Research and Development Agency. The panels will provide 4.6 million kWh of solar power generation. There’s an estimated first-year savings of $150,000 with a total savings of $5 million to $7 million over 20 years.