Schneider Electric pitches $30 million energy overhaul to Fort Mill schools with 20-year savings guarantee

Schneider Electric told the Fort Mill School District board that a proposed district-wide infrastructure program would reduce utility consumption by about 17% and yield a guaranteed annual energy-savings payment of $836,000 over a 20-year guarantee, results the company says translate to roughly $22.5 million in guaranteed savings over the term.

The presentation, delivered by Justin Schutt of Schneider Electric and project development engineer Ashley Hyatt, described a two-phase program. Phase 1 — the scope discussed at the meeting — would include retro-commissioning and standardization of building-automation systems (full replacements at Fort Mill High School and Banks Trail Middle School), interior and exterior LED conversions, sports-lighting retrofits for 23 fields (including replacing wood poles with steel at two Fort Mill fields), water-conservation measures across roughly 2,000 fixtures, weatherization sealing, replacement of 88 inefficient step-down transformers and the replacement of 60 aging windows in the R wing at Fort Mill High School.

"Comprehensively this will drive down your utility consumption by 17%," Schutt told the board, adding the company guarantees an annual return on the district's investment of $836,000 for the duration of a 20-year guarantee.

Schneider outlined a financing strategy that would rely on a mix of local bond proceeds, utility rebates and a tax-equivalent strategy using Section 179D and Inflation Reduction Act incentives. Because the district is tax-exempt, Schutt explained, the firm would take the tax deduction and return the economic value to the district as a discount on later-phase work.

"It's not a loophole. It's a financial strategy to give you the benefit that you deserve," Schutt said, acknowledging Schneider will carry some audit and recordkeeping risk — the firm's corporate books would remain open for five years in the tax-audit process.

District finance staff said the board has set aside $1.8 million for planning and has $10 million from a recent bond referendum, giving roughly $11.8 million available toward the project; the full phase-1 cost was presented as just over $30 million, leaving the district with a projected out-of-pocket need (after rebates and incentives) the presenters estimated at roughly $7.5 million.

Board members asked about operational impact and measurement. Schneider said most heavy construction would be scheduled in summers, nights and weekends to limit classroom disruptions and that the guaranteed savings would be tracked in kilowatt-hours (units of energy), not dollars, so changing utility rates would not affect the terms of the guarantee.

Schneider also detailed long-term service: 24/7 remote monitoring, a client-services team to track guarantees and a warranty structure (a 25-year parts-and-labor warranty was quoted for sports-lighting equipment supplied by Musco Lighting Solutions). The company said it would include two years of on-site support in the capital proposal with annually renewable service thereafter.

No contract was awarded at the meeting. Board members asked for supplemental contract details and cost breakdowns; staff said the project and contract terms will return to the board for further consideration and that financing structures (special-obligation bonds, potential 10-year call provisions) remain under discussion.

What happens next: District staff will continue to review contract details and financing options and supply the board with the full contract and pricing for formal action at a later meeting.