Bond Financing
Financing is frequently the biggest impediment to getting solar panels installed on public schools. And in these difficult financial times, few districts are contemplating any expenses or projects that put additional pressure on their General Funds.
It may be possible, however, to use financial instruments like Clean Renewable Energy Bonds (CREBs) or Qualified School Construction Bonds (QSCBs) to underwrite the cost of renewable energy systems that can be paid for from a school’s energy savings and applicable utility rebates. CREBs and QSCBs are zero or near zero interest bonds, so it is possible for many districts saddled with high electricity costs to use their avoided electricity costs to pay off these bonds. In fact, depending on the current rebates and cost of electricity in your region, solar projects may be cash positive throughout the 15 year repayment term.
(Note: Applications for CREBs and QSCBs are now closed for 2009, but expect to see them again sometime on 2010.)
For the 2009 allocation, we received a generous offer from SunPower Corp. and MuniBond to help interested school districts complete the bond applications without cost or obligation. KyotoUSA, together with SunPower Corp. and MuniBond, will be hosting several workshops in late 2009 for school districts interested in submitting applications for the 2010 allocation. If you would like to participate, please provide us with your contact details and we'll put you on the invitee list.
Here's a major difference between the two types of bonds:
· CREBs have a $3M cap (estimated) per renewable energy project - with the least expensive projects receiving priority.
· QSCBs have a $25M cap which can include renewable energy components.
You can see the list of of districts receiving a 2009 QSCB allocation at the California Department of Education website.
Contact us at: kyotousa@sbcglobal.net or at (510) 704-8628.
Please remember that we at KyotoUSA and the HELIOS Project are not experts on school district financing or bonds. Please be sure to conduct adequate and appropriate “due diligence” to make sure that any agreement you pursue or enter into meets with all appropriate laws and regulations.
