With so many schools struggling to operate within tight financial constraints, it’s a relief to hear that many have begun slashing utility bills–rather than more teaching positions–to close in on budget shortfalls. Solar power, ironically, has been instrumental in this cause.
As reported in the Wall Street Journal on Monday, it all comes down to cost. It might seem counterintuitive, but solar power is frequently less expensive to buy than retail electricity. In California, for instance, the cost of energy derived from the sun (between 11 and 12 cents per kilowatt-hour) can be nearly half as much as energy from the grid (between 17 and 24 cents per kilowatt-hour). Furthermore, the current oversupply of solar panels has caused prices to drop by more than 30 percent in the past three years. The increased affordability in solar panels has led to solar installations in more than 500 schools across the country. Check out this link to the Denver Public School System.
At the Scottsdale Unified Schools district in Arizona, purchasing and installing solar power has led to significant savings. In 2009, the school district agreed to purchase electricity generated by solar panels installed on its own campuses. Since the school does not own the solar panels, it also didn’t have to pay for them (known as a Distributed Generation Power Purchase Agreement). After entering an agreement to pay 7 cents per kilowatt-hour for solar energy (rather than 11.5 cents for grid power), its total electricity bill has been cut by 5 percent. Though a modest amount, the agreement to buy solar is saving the school district roughly $300,000 per year. David Peterson, the school district’s superintendent, said the savings freed up enough money to rehire six teachers who had been laid off.
For schools, reducing utility expenses is essential. While they make up only a small fraction of total operating expenditures (6 percent at Scottsdale), it is one of the only non-essential areas to cut costs.
