Funding Energy Projects at Schools
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1 Funding Energy Projects at Schools CERTs Conference February 3, 2011 Brian Ross
2 Renewable Energy Schools Much interest by schools in renewable energy Cutting edge New technology Generates interest by students, community Renewable energy can help achieve multiple local goals: Sustainability Carbon reduction Educating students, informing community
3 Renewable Energy Schools Renewable energy projects were championed by teachers, students, or parents Limited knowledge of how to install systems Limited decision-making authority Limited access to capital Each school was reinventing the renewable energy wheel Installing Funding Curriculum
4 Renewable Energy Schools The Minnesota Pollution Control Agency and the Office of Energy Security commissioned: A step-by-step guide to evaluating, installing, and using renewable energy systems in K-12 schools Evaluating Installing Funding Curriculum
5 Renewable Energy Schools A step-by-step guide to evaluating, installing, and using renewable energy systems in K-12 schools Best Practices for Schools in: 1. Understanding renewable energy opportunities and limitations; 2. Evaluating the renewable energy resource; 3. Site and building assessment prior to bidding; 4. Financing and funding alternatives; 5. Bidding projects and managing the installation process; 6. Integrating into educational curriculum; 7. Using energy efficiency to maximize renewable energy value.
6 Renewable Energy Schools A step-by-step guide to evaluating, installing, and using renewable energy systems in K-12 schools First step Assess past practices of schools for: Type of renewable energy systems Methods of funding and financing Engaging students and staff Engaging the community Incorporating the system into classroom curriculum
7 Minnesota Renewable Energy Schools 1. Apple Valley School of Environmental Studies Solar PV (2 kw), wind turbine (20 kw) 2. Battle Creek Middle School Solar PV (10 kw) 3. Chisago Middle School (Lindstrom) Solar (10 kw) 4. Cohasset Elementary School Solar PV (2.88 kw) 5. Cuyuna Range Elementary School (Crosby ) Solar PV (1.44 kw) 6. Eden Valley Watkins High School Solar PV (1.29 kw w/tracker, 0.43 kw stationary array) 7. Hartley Nature Center (Duluth) Solar PV (11.8 kw) 8. Interdistrict Downtown School (Minneapolis) Daylighting, passive solar design, solar preheat
8 Minnesota Renewable Energy Schools 9. Kennedy Community School (St. Joseph) Solar PV (5.6 kw), geothermal loop, Wind (2.4 kw) 10. Lac qui Parle Valley School (Madison) Wind (230 kw) 11. Lowell Elementary School, Duluth Solar PV Minneapolis - Olson, Pillsbury, Seward, South High School Solar, 5kw PV at each school 16. Minneapolis Southwest High School Solar demonstration trailer 17. North Shore Community School, Duluth Solar PV (2.67 kw) 18. Northfield School of Arts and Technology s (ARTech) Solar PV (2 kw w/tracker) 19. Osceola Middle School, WI Solar thermal (32 flat panel collectors)
9 Minnesota Renewable Energy Schools 20. Park Rapids Wind (20 kw) 21. Pipestone School District Wind (750 kw) 22. Prairie Woods ELC (Spicer) Solar PV, thermal, wind 23. Proctor Public School Wind (20kW) Rochester High Schools (Mayo, John Marshall, Century, Lourdes) Solar PV ( kw) 28. Two Harbors High School Solar PV (2.88 kw w/tracker) 29. Willmar Middle School Solar PV (2.38 kw) 30. Winona Senior High School Solar PV (1.1 kw) 31. Wolf Ridge ELC (Finland) Solar PV, Thermal and Wind (10kW)
10 Renewable Energy Schools A step-by-step guide to evaluating, installing, and using renewable energy systems in K-12 schools Best Practices for Schools in: 1. Understanding renewable energy opportunities and limitations; 2. Evaluating the renewable energy resource; 3. Site and building assessment prior to bidding; 4. Financing and funding alternatives; 5. Bidding projects and managing the installation process; 6. Integrating into educational curriculum; 7. Using energy efficiency to maximize renewable energy value.
11 Renewable Energy Schools A step-by-step guide to evaluating, installing, and using renewable energy systems in K-12 schools Financing and Funding Best Practices: 1. Outside Resources All schools relied heavily on outside sources of funding. Many relied exclusively on outside funding. 2. Community Focus The outside resources tended to be local resources. A number of factors contributed to this, including relying on students and teachers for fundraising, and a goal to engage not students but the larger community.
12 Renewable Energy Schools A step-by-step guide to evaluating, installing, and using renewable energy systems in K-12 schools Financing and Funding Best Practices: 3. Small Projects 24 of the projects were solar PV projects, and nearly all of these were small scale projects. The scale of the project makes certain funding options (particularly financing) untenable. 4. Financing was never seriously considered School renewable energy projects were rarely ever thought of as building projects, except when the renewable energy project was part of a new building.
13 Funding and Financing A step-by-step guide to evaluating, choosing, and implementing funding tools for K-12 renewable energy systems Financing and Funding: Funding - The source(s) of capital for a renewable energy project. Funding can come from banks, investors, local governments, state and federal agency programs and grants, businesses, and individuals. Financing - Borrowed capital to provide funding for a renewable energy project for which there is a contractual repayment schedule from an internal (school district) source of funds. Financing can include loans from banks or other financial institutions, tax equity financing, general obligation or revenue bonds, tax credit bonds, and several types of third-party financing contracts.
14 Funding and Financing A step-by-step guide to evaluating, choosing, and implementing funding tools for K-12 renewable energy systems Funding: Energy utility rebates and grants Local foundation grants Contributions from local businesses Contributions from residents Creative fundraising events in the community State of Minnesota rebates and grants Regional foundation grants Federal rebates and grants
15 Funding and Financing A step-by-step guide to evaluating, choosing, and implementing funding tools for K-12 renewable energy systems Financing: Traditional financing - Bank loans (general budget supported) Tax-exempt bonds - General obligation or revenue bonds (tax revenue supported) Tax credit bonds CREBS, QECBs, QSCBs (reduced interest bonding supported by the Federal government) Third party contracts leasing, lease/buy back, purchase power agreements (PPAs), general budget supported via lease payments or energy payments
16 Funding and Financing A step-by-step guide to evaluating, choosing, and implementing funding tools for K-12 renewable energy systems Sample Action Steps for Funding and Financing: 1. Identify funding and financing resources available to the project. a) Identify potential sources of funds. Examples: Utility rebates; local foundations. b) Review financing options. Examples: Purchased Power Agreements (PPAs); 2. Create a project budget. 3. Engage financial stakeholders. Examples: Financing professionals at the school district; 4. Engage the community. Examples: Community solar and wind; Student engagement. 5. Address funding and financing within the bidding process. Examples: Third-party financing; Volunteer labor.
17 Minnesota Office of Energy Security Website: / Resources
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