The HELiOS Model
The more that you read, the more things you will know. the more that you learn, the more places you'll go.
--Dr Seuss
Overview
HELiOS works because it combines favorable financing, utility administered rebates, efficiency and conservation measures, and the potential availability of school modernization funds to make it possible to install a renewable energy system that produces all, or much, of a school's electricity needs without increasing a District's operating costs. Financing can come from a variety of sources including low interest federal bonds or state loans, tax-exempt municipal leases, or General Obligation bonds. Local contributions in the form of in-kind support or participation on a district solar committee can also assist a district in achieving its goals to reduce energy costs and its reliance on fossil fuel generated electricity.How is it possible to pay for a solar project without putting pressure on the General Fund? The most effective solution is for a district to ask the residents of the school district to support a construction bond that includes money for energy efficiency and renewable energy systems. Berkeley Unified School District is one of many districts in California that did so successfully in 2010. The electricity savings – which are substantial – are then available for teachers and programs. Developing a Solar Master Plan can be an important first step in determining the size of the bond that would be used specifically for renewable energy systems. An example of a comprehensive Solar Master Plan is now available on our website. In 2011-2012, KyotoUSA will be working with additional East Bay school districts who are interested in developing their own Solar Master Plans.
Alternatively, districts can take advantage low interest financing and use the savings in electricity costs to pay off the debt. At the end of 2011, interest rates remain low, PV costs are declining rapidly, and installation costs have been held in check by intense competition among solar vendors. Electricity prices continue to rise at 3 to 5% annually. In this scenario, the district’s cost to repay the loan or low interest bond would come entirely from the electricity savings. The HELiOS target is to ensure that the payments on the financing instrument are less than the value of the avoided electricity costs. In that case, the PV transaction becomes revenue positive and the district’s general fund benefits from the day the PV system goes on line. This is exactly what happened at San Ramon Valley Unified School District when it installed 3.3 MW of solar in the summer of 2011.Contact us for more information on the underlying financial calculations and assumptions that can help you determine what it will take to make a PV system cost neutral to your school district.
