Ameresco pitches solar ownership for three Cary school roofs, warns of federal deadlines

Ameresco representatives presented a solar proposal to the Cary School District committee of the whole on Aug. 11, 2025, outlining ownership models, estimated system sizes for three schools and a timeline that company leaders said would improve the district’s chances of capturing federal and state incentives.

The company recommended an ownership model rather than a power-purchase agreement, citing changes in federal tax treatment. “We are not able to offer PPAs at the moment,” Ameresco Senior Account Executive Diana Vargas told the board, referring to lenders’ concerns about the Investment Tax Credit (ITC) direct-pay rules. Company Vice President Steve Taggart said ownership now often makes more financial sense for tax-exempt entities because schools can access direct pay and lower borrowing costs.

Ameresco emphasized near-term federal and administrative deadlines. Vargas highlighted two dates the company is tracking: projects that begin construction before Dec. 31, 2025, would avoid new foreign-entity sourcing requirements that take effect Jan. 1, 2026; a later date of July 4, 2026, is a more likely but still important cut-off for meeting eligibility for the ITC under current guidance. Taggart said ComEd interconnection approval typically takes about three months and that design requires about one month, so the company recommended starting steps this fall to meet the 2026 window.

Why it matters: Ameresco said the combination of a 40% ITC direct pay (from the federal Inflation Reduction Act), Illinois Shines renewable energy credit revenue and a ComEd rebate would substantially reduce up-front costs for the district. The company provided preliminary estimates for three candidate buildings based on district-provided utility bills and aerial roof imagery: Oak Knoll Early Childhood Center (estimated 177 kilowatts), Briargate Elementary (estimated 205 kW) and Cary Junior High (estimated 720 kW). At the meeting the presenters walked the board through projected rebates, renewable-energy-credit revenue and the ITC effect on net system cost; the district’s aggregated, preliminary calculation presented during the meeting showed an estimated combined up-front cost of about $5,370,000 for the three buildings, an automatic utility rebate of roughly $275,387 and a potential treasury (ITC) refund of about $2,148,000, leaving an estimated balance of $2,946,613 to be amortized over a 20-year period, according to the numbers Ameresco displayed.

Key details from the presentation: - Project sizing and roof condition: Ameresco said it would not install panels on roofs older than five years and identified Oak Knoll, Briargate and Cary Junior High as candidates; Cary Junior High’s new roof is scheduled for next summer and may affect that building’s eligibility. Vargas said panels provide some roof protection but that roof replacement and installation are often done sequentially when needed. - Financial incentives and revenue streams: Ameresco described three revenue components it used in its estimates—an estimated ComEd rebate (paid directly to the district), revenue from Illinois Shines renewable energy credits (RECs) sold by the district and the 40% ITC direct pay. Vargas said Illinois Shines REC revenue is typically paid over a 20-year period, while the ITC direct pay would be claimed the April following project completion. - Ownership vs. PPA: The presenters said ownership is currently the preferred model for tax-exempt entities because of the direct-pay ITC and differences in tax and borrowing treatment between developers and school districts. Taggart noted, however, that the company’s financial partners have become more cautious about PPA structures amid Treasury guidance uncertainty. - Batteries and resiliency: Ameresco said the proposals reviewed at the meeting did not include battery storage; presenters said batteries can improve resiliency for critical facilities but currently are not cost-effective for the district’s buildings in the company’s view. - Timeline and risks: Ameresco outlined a sample schedule aiming to energize Oak Knoll and Briargate by late September 2026 if the district gave notice to proceed in mid-October 2025. The company identified three central risks: changing federal guidance on what counts as “beginning construction” for safe-harbor ITC rules; supply constraints and potential cost increases tied to domestic-content sourcing rules that take effect for projects starting after Jan. 1, 2026; and the ComEd interconnection review duration.

Board questions centered on roof longevity, maintenance, expected first-year energy savings, net metering rules in Illinois and public outreach. Vargas said Oak Knoll’s preliminary first-year energy savings estimate was about $21,000; Ameresco staff said they size systems to match building load because excess generation yields limited financial return under local net-metering rules. The presenters also offered to support district staff with federal paperwork, Treasury filings and community outreach if the board proceeded.

No formal vote or contract award occurred. Board members and staff said they would return the item for discussion at a regular board meeting with a staff-prepared summary and detailed cash-flow tables if the board wished to proceed.

"We will make sure all the paperwork's done properly," Taggart said, adding Ameresco’s government-affairs resources would assist with filing requirements.

What’s next: District staff indicated they will compile the company’s information and place a discussion item on an upcoming regular board meeting agenda to allow the board to consider whether to proceed with design, community outreach and procurement steps. Ameresco proposed an internal timeline that would start with a notice to proceed in October 2025 to hit a mid-2026 construction window, but said the district faces risk if Treasury or other federal guidance tightens the definition of beginning construction.

Ending: Ameresco representatives said they would follow up with answers to several technical questions raised during the presentation and offered to help with community education events if the district elects to pursue projects.

Speakers quoted or named in this article appear in the speaker list below and were the only sources for direct quotations used in this story.