The Steelton-Highspire School District in Pennsylvania, facing significant budget deficits, implemented a strategy to reduce operational costs by adopting solar energy and transitioning to electric school buses. This initiative was driven by necessity rather than environmental goals, highlighting a pragmatic approach to financial challenges common in many underfunded school districts.
The district partnered with McClure Company, an energy services firm, to install a 1.7-megawatt solar array through a power purchase agreement (PPA). This arrangement is expected to cover 100% of the district’s annual electricity needs and save approximately $3.6 million over 20 years. PPAs are a common mechanism for schools to access solar energy without upfront costs, but the terms of these agreements require careful scrutiny to ensure they are financially beneficial. The article includes new information about a previous PPA offer the district rejected because it was deemed unfavorable compared to the one eventually agreed upon with McClure.
To transition its six school buses to electric, the district secured a $2.4 million rebate from the Environmental Protection Agency’s Clean School Bus Program, funded by the 2021 Bipartisan Infrastructure Law. The district worked with First Student, its transportation services contractor, to install on-site charging stations that leverage the school’s solar power, thus avoiding the high costs and complexities associated with upgrading external electrical infrastructure. The choice to use on-site solar power was strategic. It avoided potential high costs associated with utility upgrades at an off-site bus depot, taking advantage of readily available space and the solar array. This integration of solar power and electric buses is expected to save the district around $20,000 annually.
As of the end of 2023, 433 school districts in the U.S. had both solar installations and electric school buses. These districts have a cumulative solar capacity of 609 megawatts and commitments to deploy 4,556 electric school buses. The article includes updated figures from Generation180 and the World Resources Institute, indicating a growing trend among schools to adopt these technologies.
The article also explores some financial intricacies of solar PPAs and the economics of electric buses. The cost-effectiveness of solar power versus utility-provided electricity can vary depending on location, utility rates, and specific PPA terms. There is new context regarding the variability of solar power value and the importance of understanding demand charges, which can significantly impact a school’s electricity bill. Experts like Greggory Kresge of the World Resources Institute emphasize the importance of evaluating time-of-use rates offered by utilities, which might be cheaper than solar power for charging buses during off-peak hours.
The article discusses the potential for vehicle-to-grid (V2G) technology, where electric school buses can provide backup power during outages or help reduce peak demand charges. First Student is already working on such microgrid projects in cities like New York, and similar V2G initiatives are being launched in several states. There is added detail about ongoing V2G projects and Steelton-Highspire’s plan to explore using its electric buses for backup power, highlighting the potential for schools to enhance their energy resilience.
While the combination of solar and electric buses presents a significant opportunity for cost savings and emission reductions, the article concludes by noting that each technology has its challenges. School districts need to coordinate decisions made by different departments (e.g., facilities and transportation) and carefully evaluate the financial and logistical aspects of these projects. Organizations like Generation180 are facilitating knowledge sharing among districts through networks such as the School Leadership and Clean Energy Network. The district is still awaiting a full year of data to fine-tune its approach but emphasizes the importance of acting quickly to secure available funding.
