Bloomingdale Schools Consider Solar Program

The is considering energy projects that could offset the costs of infrastructure improvements to the districts three buildings.

The board heard presentations by Ronald Ianoale, an attorney with Ronald J. Ianoale, Esq., McManimon & Scotland, LLC, and LAN Associates Director of Construction Angel Cabello during its regular meeting Monday.

During the meeting, Business Administrator George Hagl said he invited the presenters to attend the meeting because he was intrigued by a paper Ianoale had authored entitled "Strategies for Financing Energy-Related Improvements." The paper makes suggestions for ways school districts can benefit from implementing energy programs.

Three methods in particular are described in the paper, and were described to the board Monday. The first would involve bonds being issued to the district and approved by the voters through a referendum. Ianoale said that if the district pursued bonds, the district could also apply for a debt service grant from the state, although this funding is currently on hold.

Ianoale said if the district were to do a solar energy project, in which solar panels are placed on the roofs of the district buildings that can sustain them, the district would also be able to sell Solar Renewable Energy Certificates (SRECs) for around $650 each. SRECs are energy credits that are bought or sold after solar facilities have generated 1 MWh. They are primarily bought by electric suppliers so that the supplier can fulfill their renewable energy standards determined by the New Jersey Board of Public Utilities (NJBPU).

The values of SRECs are set by the NJBPU, and the panels would stay on the roofs for about 15 years, he said.

In addition to gaining revenue from the sale of the SRECs, the district would also be saving money on its own utility usage-about 20 percent Ianoale projected. 

Another option Ianoale described, which would not require a voter referendum, is to enter into a Power Purchase Agreement (PPA) with a provider who would install the panels, maintain them, and reap the benefits, such as selling the SRECs. The benefit to the district would be that it would save on utilities.

"All you need to do is to provide a roof," Ianoale said.

The third option would be for the district to simply to begin an Energy Savings Improvement Plan (ESIP), which would entail entering into a performance contract in which the district would incur debt to complete energy savings projects, and the savings would be used to pay back the debt.

The purpose of any of these projects would be to free up money for the district to complete infrastructure repairs, Ianoale said.

"If we can generate enough savings, maybe there's enough money to repair the roofs," he said.

Ianoale also said incorporating the project into the district's curriculum could help students learn about the benefits of renewable energy.

Board Member Andrew Babar Samuel asked Ianoale if it would be more advantageous to wait for new technology to come out, potentially creating a better option for the district at a later time.

"Technology won't change so dramatically," Ianoale said, adding that the sale of the SRECs could yield lower revenue if the district waits.

Cabello mentioned that at this point, the repairs to the buildings are in such immediate need, and that these suggestions could help.

Cabello said the district has about 100,000 square feet in flat roofs, and that the repairs could cost as much as $500,000 to repair. Hagl said the roof has not seen an upgrade since 1996 or 1997, the roof is having some leakage issues and has not had significant repairs in the past 25 years, and that the is also having leakage problems with the roof.

Ianoale recommended the district first move forward with an energy audit, which he said the district can apply to be partially paid for (75 percent) by the NJBPU. If the recommendations made in the audit are implemented, the NJBPU will pay back the district for the remaining 25 percent, he said.