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CUSD 300 weighs buy vs PPA for rooftop solar as federal incentives near July 4 deadline
Summary
Staff presented options to install rooftop solar on six buildings: direct purchase (estimated project cost $14.5M, net ~$8.8M after incentives, ~8‑year payoff, ~$22M 20‑year savings) or a PPA example (lower up‑front cost, estimated $9.5M 25‑year savings). Staff warned a May board action is needed to secure federal incentives before a July 4 cutoff.
CUSD 300 staff briefed the operations committee on April 7 about a proposed rooftop solar program for six district buildings, laying out procurement options and the financial tradeoffs.
District presenters noted the six buildings under consideration consume about 14.2 million kilowatt‑hours annually—an amount they equated to powering roughly 1,300 average U.S. homes—and emphasized the choice of finance model drives both upfront cash needs and long‑term returns.
Under a direct purchase example, staff said the estimated gross project cost for the six roofs is approximately $14.5 million. With projected state and federal incentives (stated in the presentation at about $5.7 million) the district’s net cost would be about $8.8 million; staff estimated annual electric bill savings of about $1.1 million, an eight‑year payback and roughly $22 million in net savings over 20 years. The district would own and be responsible for maintenance and repairs.
As an alternative, staff presented a purchase‑power agreement (PPA) example in which the district pays for solar power under a long‑term contract but does not own the system. In the example staff used, the PPA rate was about 6¢/kWh versus the district’s current ~9¢/kWh, producing an estimated $9.5 million savings over 25 years; the PPA offers no ownership and a lower long‑term return than direct ownership but requires no upfront capital from the district.
Dr. Williams flagged timing: the federal incentives used in staff scenarios were described as subject to a July 4 expiration, and staff said capturing the incentives would require bringing a formal recommendation to the board in May. Staff advised the committee to weigh cash availability, the district’s fund balances (already committed in part to Dundy Crown work) and operational capacity to maintain a purchased system versus the convenience of a PPA.
Ending
Trustees asked follow‑up questions about storage, exporting excess generation and fund‑balance impacts; staff said selling power back to the grid is not currently allowed under state code (they will confirm) but that storage or internal transfers are possible with additional infrastructure costs. Staff said they will return with a formal May recommendation if the board wishes to pursue incentives.
