Quantum of Solar

Schools are perpetually strapped for cash. Economically devastating blackouts are a danger during sweltering summer afternoons. Climate change looms as a growing threat. Is there one solution that could help alleviate all three problems?

Yes. It’s called a Solar Power Purchase Agreement (PPA). Here’s how it works for a school system. An energy company designs, installs and maintains the solar panels. A bank finances the solar system, owns it and sells the power to the school at below-market rates. The school effectively leases the solar panels so they don’t have to shell out a huge amount of capital to buy them.

In San Jose, California, Chevron Energy is designing and installing five megawatts of solar panels and making energy efficiency retrofits for the San Jose Unified School District. Bank of America is financing and will own the systems. The benefits that accrue to the school district include:
•    $25 million of energy savings over the life of the systems
•    Budget stability for electricity costs
•    25% reduction in energy demand for the district
•    Reduction of 37,500 tons of CO2 equivalents over the life of the project

PPAs for schools appear to be a growing trend. Chevron is actively looking for more school systems in the Sun Belt for whom they can do similar agreements. Bank of America has committed $20 billion to projects like solar PPAs that support the growth of environmentally sustainable business activity.

This is an example of solving for pattern, where one solution addresses multiple problems simultaneously. Can you think of other examples where a project would chip away at our fossil fuel dependence and also help solve other social and environmental problems? Share them here.