Solar energy is a renewable, clean energy source that can save schools money. The sun shines everywhere – so why doesn’t every school have solar energy?

What makes a solar project “good”?

Here are a few main factors that determine if and when going solar is right for each school.

1. Site

Solar panels require space, so the first step is to find a location for the solar panels. Is there nearby land available? What is the size and condition of the school roof?  Because solar systems last for decades, it’s best to install solar on new or recently replaced roofs so the panels do not have to be removed and reinstalled for a roof replacement.  

2. Price

There are three things that influence whether a solar project will be financially feasible (and hopefully advantageous):

1. Size and type of the solar array: Larger systems benefit from economies of scale. (Bigger = better rate.)
2. Current price of electricity: Schools paying high electricity rates have the greatest potential to save money with solar by comparison.
3. Length of contract term: The longer a school commits to the solar agreement, the lower their solar energy rate will be.   

3. Policy

Policies, incentives, permitting requirements, or additional costs could help or hurt the case for solar in a particular location. The less barriers, the better.

How can a school finance a solar project?

Many people are surprised to learn that solar energy is not always expensive for schools – in fact, schools around the country are currently saving millions of dollars by going solar. Many schools take advantage of a third-party ownership structure, such as a Power Purchase Agreement (PPA),to significantly reduce the financial barriers to solar adoption. Here’s how it works:

1. A school partners with a solar company, such as Madison Energy Infrastructure, who installs and maintains a solar system on school property at no upfront cost to the school.
2. The solar company owns and maintains the array, while the school agrees to pay for the electricity it generates for an agreed-upon, fixed rate and term.
3. Typically, the school will pay a lower and more predictable rate, and the agreement lasts between 15 and 25 years. The school does not have to ask taxpayers for any capital funds, and they can often save money while protecting the budget against rapidly changing energy prices.