Funding for clean energy technologies through the Inflation Reduction Act (IRA) is starting to reach K-12 school districts across the country, according to a news release from the National Association for Energy Service Companies (NAESCO).
The Investment Tax Credit (ITC) is part of the IRA that was primarily targeted for solar energy projects but can also apply to renewable energy systems like wind, geothermal and fuel cells. The tax credit can allow schools to deduct a significant percentage of the cost of renewable energy systems from their federal taxes.
NAESCO spotlighted four districts that recently received funding for their projects.
Seattle Public Schools: Received $7,970,439 for a ground-source heat pumps project involving 19 buildings, with more planned, as part of a program advancing sustainable energy practices in all new construction projects.
North Fayette Valley Community School District, West Union, Iowa: Received $873,483 to contribute to a $4.2 million project to replace a 1957 steam heating system with ground source heat pumps in August 2023. The 1,100-student district is one of the first in the country to file for reimbursement from the IRS using Elective Pay.
Hart County Schools, Kentucky: Received $793,079 in federal funding from Elective Pay for the installation of a high-performance geothermal system that was completed as part of an energy savings performance contract. The project helped reduce the school’s energy use by 52 percent.
Oregon School District, Wisconsin: Received $73,761 and was the first district in the state to receive a clean energy tax credit for a recently installed rooftop solar array to help lower the high school’s electric bills.
Dave Lubach is the executive editor for the facilities market.
