Energy Systems Group proposes $20 million districtwide solar, HVAC and infrastructure plan to El Rancho Unified

Energy Systems Group (ESG) presented a districtwide energy and infrastructure feasibility study to the El Rancho Unified School District board on May 19, proposing a bundled project of roughly $20 million to replace aging HVAC, upgrade lighting and transformers, add solar at El Rancho High and install EV chargers.

ESG representative Ashu J told trustees the firm had worked with the district for more than a decade and framed the plan as a bundled approach that pairs high‑savings measures (solar, efficiency) with necessary but lower‑payback projects (HVAC replacements, exterior lighting). "If we were to implement this project, we think we can save more than 50% of that energy consumption," Ashu J said, referring to the district's current usage of about 1.1 million (kWh) annually.

Why it matters: ESG said the project would address long‑deferred facility needs while producing energy and maintenance savings. Key elements ESG listed included 234 HVAC unit replacements, 355 networked thermostats to enable remote monitoring, about 100 transformer replacements, targeted LED lighting upgrades, kitchen exhaust retrofits at several sites and a roughly 400‑kilowatt solar array sized for El Rancho High. The firm also proposed installing eight EV chargers as part of the solar installation.

Costs, financing and savings: ESG presented a preliminary cost estimate of about $20 million with a current accuracy band of roughly ±10–15%. The company proposed tax‑exempt 20‑year financing (it estimated indicative interest around 4.25%) and said savings from solar, energy efficiency and avoided maintenance could cover lease/loan payments. ESG projected net annual savings after financing of about $18,000 and cumulative lifetime savings of about $6.9 million. The firm noted urgency related to the Inflation Reduction Act tax credit: projects must meet start/completion rules to qualify for a 30% tax credit and ESG said the district should complete qualifying solar work by December 2027 to be comfortable claiming that credit.

Trustee questions and staff requests: Trustees pressed for more detail and precautions. Trustee Perez asked, "If the projected savings are not as expected, whose financial responsibility does that fall on?" Ashu J replied that ESG provides energy‑savings guarantees on projects and, in the company’s practice, will compensate shortfalls under agreed measurement protocols. Board members also asked for more detail on the district’s existing solar power purchase arrangement and on how the new project would integrate with or replace current contracts.

Other concerns included facility envelope work: several trustees urged that window condition and air infiltration be evaluated because replacing HVAC without addressing leaky windows could undercut savings. ESG acknowledged windows can be expensive to replace and said the firm could model lower‑cost window inserts and include window measures in the next feasibility phase.

Next steps: ESG said it would proceed with detailed design at its cost if the board directs staff to continue; the firm proposed returning in mid‑August with a final contract and guaranteed price if the board elects to advance the project. The presentation and trustee Q&A concluded with a request to staff to supply additional data on existing solar production, current payments under any power‑purchase agreement and to model window and envelope options for the board’s August review.

What was not decided: The board did not authorize construction or financing at this meeting; trustees requested further information on the project scope, the district’s existing solar PPA, a breakdown of projected grants and incentives, and a detailed review of how the project would be procured and guaranteed.