ELWOOD — Officials with Elwood Community Schools hope to have each of the district’s buildings converted to solar power by Dec. 31 to take advantage of a clause in a controversial law passed earlier this year.
Under the law that takes effect July 1 and would end net metering by 2027, homeowners, schools and businesses would be forced to buy electricity at a full retain rate while selling excess electricity to the grid at a lower wholesale rate.
However, ECS board member Bob Savage said the district can be grandfathered in to allow it to earn money at the higher rate.
“We would generate positive cash flow over the course of a year, according to the program,” he said.
Savage said the district expects to enter a 20-year lease of the solar array. The $6 million project also includes retrofitting of the buildings to LED lighting.
“The leasing is done in such a way that the school district doesn’t have to seek any bonds,” he said. “We will have positive cash flow while we’re paying it. Once the lease is up, we’ll make even more.”
There would be no upfront costs, and the $421,000 that would be due at the end of each year would be offset by money made by generating and selling electricity, Savage said. Under a state energy savings program, he added, contractors guarantee kilowatts rather than dollars saved because of the fluctuating value of electricity.
For instance, a report commissioned by the district from EMCOR Construction Services and PSG Energy Group estimates the utility costs for the district over the next 25 years would be more than $17.5 million. However, the solar conversion would net an estimated savings of $8.7 million.
Though estimates include all of the district’s buildings, there has been some talk about excluding Elwood's administration building from the project because of the possibility of a move, Savage said.
“On the other hand, if we do it, we have increased the value of the building for when we sell it,” he said.
Superintendent Dr. Chris Daughtry said the solar conversion and retrofitting is an important means of saving money, becoming environmentally friendly and providing an educational opportunity for students.
With tax caps dictated by state law, Daughtry said, districts must find ways to save money as other costs increase.
“It helps to control energy costs for us moving forward. And we know for us there will not be more money,” he said.
“We’re always trying to become greener. We have older buildings, but this is our way to move our buildings into the 21st century.”
Daughtry said the district also will take advantage of the project by setting up kiosks and developing educational units where students can do mathematical conversions and see the impacts of electric usage.