Solar panels coming to Deerfield, Highland Park high schools; ‘It’s technically going to be a free project after 12 years, and ... savings after that’
Federal incentives for renewable energy, carbon footprint reduction and long-term financial savings were the main motivators for Township High School District 113 to add solar panels to school buildings as soon as possible.
The $9.94 million solar panel roof installation project for Deerfield and Highland Park high schools was given the green light Monday by the Board of Education for the high school district.
By the end of the second year with solar panels, the district expects to see 50% of the total project cost returned through various energy incentives and rebates, according to Ali Mehanti, the district’s assistant superintendent for finance.
“Looking at the (school) board policies regarding reducing the carbon footprint, that’s always one of the board’s goals,” Mehanti said. “But with these huge incentives that we can take advantage of, I think that this was the time to take advantage of that.”
The primary incentive source is from the Inflation Reduction Act, in which the district is eligible to receive 30% of the total cost of the project, or about $2.98 million, back after the first year of installation.
Rebates will also come from the electric utility ComEd, about $672,000, and the federal Renewable Energy Credit (REC) program. Over 7 years, the school district anticipates $2.35 million from the REC incentive, which is based on the total size of the district’s electrical system.
With all of the incentives combined, Mehanti expects the district will be able to pay off the project 13 years after installation.
Nearly 25% of the combined school electricity usage will be offset by the solar panels, which will save $200,000 in utility costs in the first year of the solar panels, according to Mehanti.
Current annual electric usage by the two buildings is 12.5 million kWh, and the photovoltaic (PV) solar panel systems will generate more than 3 million kWh, or 24.9% of the buildings’ electricity.
Annual utility savings will escalate each year, reaching over $300,000 in savings by year 11, and over $500,000 in utility savings by year 27, based on cost savings projections by the school district.
“People issue bonds over 20 years and so this project ... when we look from that perspective, it’s technically going to be a free project after 12 years, and then there’s savings after that,” Mehanti said.
Over 30 years, the total cumulative savings is $16.9 million, which includes the three rebates.
“Financially, it makes sense,” Mehanti said.
The two high schools, the only school buildings in the district, will be the first buildings to utilize solar electricity.
Performance Services was selected by the school district for the installation of the panels, and the school district hopes to install the panels during the summer of 2024, according to David Ahmer, the district’s chief operations officer.
