Morgan Hill Unified School District is working on a contract with Bank of America and Chevron to install solar panels at both high schools by the year's end.
The move could save the district up to 23 percent of its overall energy costs by providing up to 80 percent of the electricity for Ann Sobrato and Live Oak high schools over the panels' 20-year lifespan.
The district will have a seven-year window to buy the panels from Bank of America. If they do, these savings will be greater but maintenance costs would increase, Deputy Superintendent Bonnie Tognazzini said.
The district plans to install solar panels at the high schools in November atop carports in the schools' parking lots, which would generate one megawatt of power each.
With their long hours and high-tech equipment, use more energy than other district schools, Tognazzini said.
The panels will be purchased from Chevron by investor Bank of America, said Tognazzini. The school district will then buy the power generated by the panels from Bank of America at an estimated 15 cents per kilowatt, district energy manager Peggy Roberts said. While this is "about the same" as the amount the district pays in bulk through Pacific Gas & Electric, Roberts said this would be a static amount. Pacific Gas & Electric raises prices at an average of six percent per year, she said.
Details are still being worked on as the contract between the three groups is finalized, Tognazzini said.
The trustees approved for staff to move forward with the panels at their May 27 meeting.
"Hopefully, it's a win-win for us," Trustee Mike Hickey said. "The cars will be in the shade and if we can cut some of our utility costs it will be great."
The system could be up and running by December 30, according to district projections.
Trustee Julia Hover-Smoot, who initially had concerns over hidden costs after the panels' warranties run out, said that it's a good bet the panels will save a lot of money.
"Since the benefit to us is we buy energy in the future at a much lower rate, there's a good bet that we're going to save a lot of money," she said.
Smoot said she also didn't want to pretend that the district is "going green" by putting in solar panels.
"This is about us getting lower-cost electricity," she said.
Natalie Everett Natalie Everett covers education and city issues for The Times. Reach her at (408) 779-4106, ext. 201, or neverett@morganhilltimes.com.
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