Board of Education Receives More Specifics About Solar Panel Project

Construction on the Terrill Middle School solar panel project could start as soon as next spring, if voters OK bonding for the plan this September.

The Scotch Plains-Fanwood School District has been working on the project for over a year now, and last November gave Trenton-based architects to begin developing the plans. At last week's Board of Education meeting, the firm presented the specifics of what the project will entail, and what it will cost.

Right now, the ultimate cost of the nearly 16,000 square foot panel system is estimated to be $727,272. About 40 percent of that money could come back by way of the state's debt service aid, and another $312,842 will be covered through the Customer On-site Renewable Energy Rebate grant, which the district received last April. The total net cost to the district after these savings is $123,521.

The plans will be submitted to the state Department of Education by March 31. To keep things moving forward after that, the project must be put to a public referendum vote on September 28. The district will be requesting to bond for the full $727,272, with the understanding that some of that money will come back through the aid detailed above.

Architect George Duthie told the board last Thursday that the annual incentives the district could receive will likely balance out this cost. After 15 years, Duthie said, the district can expect to see about a $299,580 reduction in utility bills. It can also make money through the sale of the energy back to the grid via Solar Renewable Energy Credits, or SRECs, which are bought by electric companies so that they can offset the state's requirements for producing clean energy.

Duthie said after the debt service aid, the CORE rebate, the utility bill reduction and the expected SREC revenue, the project should pay for itself in only 2.1 years, not including the bond interest. The revenue after the initial payback, he said, may be used for other district needs thus lessening the burden on taxpayers. After 15 years, the life of the bond, the total incentives from utility bill savings and the sale of SRECs should equal $863,496, but Duthie noted that the savings estimates are conservative by nature and could be realized to be more.

"The project will not result in a tax increase," he said. "That's not bad for a 700-some odd thousand dollar project."

The project began after the district received the $312,842 CORE Rebate grant last April. The district was initially denied the grant, but then extra funding became available and SP-F was awarded the funds.

Terrill Middle was chosen for its ideal size, roof structure, age and shading. If the project is a success, the district says it will try to seek funding to start solar energy initiatives at the other schools.

"Solar is real, it's out there, and it's catching on really, really quickly in New Jersey," Duthie told the board.

New Jersey, he said, is only second to California in terms of solar energy use, partly because of the incentives the state offers to make it happen. A number of schools in the state are already using a solar panel system, include ones in Greater Egg Harbor, Columbus and Bridgeton. Duthie said they have all found it to be a successful innovation with many positive aspects.

The solar panel setup at Terrill will be 15,984 square feet and consist of six components: the photovoltaic panels, an inverter that converts the power from direct current to alternating current; a weather station; a ballasted racking system on which the panels are mounted; pv arrays (linked sections of the panels); and a touch screen kiosk, which acts as an educational unit by reporting the efficiency of the system in real time. The panels will face solar south. It's estimated that the system output will be 111.9 kilowatts. The expected life for the panels is up to 35 years and for the inverter at least 15 years.

Duthie insisted that no maintenance is required for the system, and that the only real cost will be the interest on the bond, which he said is at historically low rates.

If the bond referendum is approved in September, the architects will move forward with bidding for construction.

When one Scotch Plains resident questioned whether the project's costs were appropriate given the year's tight budget constraints, Board President Trip Whitehouse noted that the district's enclosure in the CORE rebate program is narrow and requires the project be done within 24 months, although they can get an extension so long as they're actively working on the project. If the district were to stop the project, they would forfeit the funds since the rebate program is no longer in effect.

"This is not something that will be there next year or the following year," Whitehouse said.

Another point made by Duthie was that the revenue generated through the sale of SRECs is high right now, and that the later the district waits, the lower the revenue stream will be as more solar energy projects enter the game.

"I don't see us putting that much on the line for something that has such a great financial benefit," Business Administrator Anthony Del Sordi said about the plan.

Other questions raised regarded the durability and cleaning of the panels. Duthie assured that they were sturdy and able to withstand blizzards and storms. He also mentioned that the angle of the panels would allow rainfall to wash away nearly anything and that the system monitors itself in real-time, so that in the event there's any drain on the system output, the kiosk system will be alarmed.

Scotch Plains resident Rona Goldberg brought up the potential for energy savings in the summer, when the sun is shining most intensely, but schools aren't being used as frequently. Duthie's response was that the system isn't capable of storing energy, but it is able to basically turn the meters back, restoring the electricity to the grid and allowing it to be sold to others.

Not only will the solar power energy system save the district money, Duthie said, but it also saves the environment from 80 tons of carbon dioxide pollution each year. The reduction in carbon dioxide is equivalent to over 194,000 auto miles per year.

Del Sordi said that the facilities committee has already done a review of the plans and that they'll have a follow-up meeting with the finance committee in the next few months. Another presentation fully detailing the funding will come sometime thereafter.