State rebates hold key to solar plans

The Nashoba Regional School District has spent years pursuing creative ways to cut its energy costs, said William Spratt, its director of facilities, including a recent effort to install solar panels atop two school buildings.

The problem is, the panels may end up costing more money than they save.

Nashoba has been counting on a state program that awards money for solar electric panels. The Commonwealth Solar program is not guaranteed beyond seven years. If the program is not renewed, and funding dries up, the district would not see a return on its investment. The district, which draws students from Bolton, Lancaster, and Stow, could even end up spending more for electricity by going solar, according to Spratt.

"The financials of the project don't make sense" without the rebate program, he said. "There's about a 17-year payback on the investment."

Provided through the Massachusetts Technology Collaborative, the state's economic development agency for renewable energy, Commonwealth Solar provides rebates to private businesses and residents who purchase solar panels to supply their electricity.

School districts can't directly receive credits from Commonwealth Solar, so Nashoba intends to achieve its cost savings by working through Borrego Solar Systems Inc., a national solar-energy provider with offices in Lowell, that would receive credits from the state program and use them to reduce the cost to the school district. Officials project that Nashoba would save about $1.2 million over the next 30 years if the credits from Commonwealth Solar remain intact. Spratt expressed doubt that the district would realize any savings without the credits from Commonwealth Solar.

However, should the state program be ended prematurely, Nashoba would have to pay the difference for any credits not received by Borrego.

Spratt said the district is still pursuing the solar project, which could include installations at the Luther Burbank Middle School in Lancaster and Nashoba Regional High School in Bolton. The finances could easily change: Borrego

has indicated its openness to negotiating a lower price with the district, he said.

However, Nashoba's concerns highlight some of the difficulties involved for communities looking to tap alternative energy sources in the face of escalating fuel and electricity prices.

Bolton is just one of several communities pursuing solar power. At the prompting of the town's Energy Committee, formed to look at alternative energy solutions, officials are also exploring putting solar panels on the expanded Bolton Public Library and the new public safety center, said Town Administrator Jodi Ross.

Hopkinton officials are also examining whether to place solar panels on the town's fire and police stations and two schools.

Ashland's school system already has a solar panel up and running at the high school.

Borrego and other private contractors have offered to step in and secure the Commonwealth Solar rebates for cities and towns. Under its proposals to Nashoba and Hopkinton, Borrego would pay for the capital costs of installing

solar panels and receive the rebates from the state program. The towns would pay the costs back to the company over time through a fixed rate for the electricity generated by the solar equipment.

"We're trying hard to make it affordable for the customer," said Cara Morano, a municipal energy consultant for Borrego. "We're certainly willing to negotiate, because it's in the customer's best interest."

Morano said there's a growing interest among municipalities across the state in solar energy.

She said investing in solar makes sense for many communities, by allowing them to stabilize electric rates over a long period of time. In the current market, electricity rates are rising so drastically that cities and towns are hit with sticker shock when it comes time to renew an energy contract, she said.

That makes it difficult for cities and towns to prepare budgets when their energy costs are constantly bouncing upward, said Morano.,/p>

"Solar provides predictable energy costs that are at or below what they are paying currently," the Borrego consultant said, "so it becomes very simple for them to make a decision."

Brian Main, facilities director for Hopkinton, said he's optimistic that an arrangement with Borrego would work for the town, although he said the project is still in the study phase. The savings may not be huge, he said, but could at least allow the town to freeze its electric payments.

"There's no cash outlay," said Main, "and we will be able to budget fixed electrical costs over a long period of time."