Santa Monica-Malibu School District Signs Solar Power Purchase Agreement

SANTA MONICA, Calif.--(BUSINESS WIRE)--On September 1, 2010 the Santa Monica-Malibu Unified School District Board approved entering into a solar contract that will provide nearly two-thirds of the power their elementary schools need and will save the district as much as $4 million over the next 25 years.   

“The Board’s decision represents a successful culmination of a nearly two-year effort,” said Virginia Hyatt, Purchasing Director for the District. “We couldn’t have arrived at this point without the support and active participation of a team of dedicated solar advocates.”

The City of Santa Monica jump-started the effort in 2008 with a $20,000 grant for a solar potential study and development of a Request for Proposals. The team assembled to select a solar provider included City staff from the Solar Santa Monica program, SMMUSD staff as represented by Hyatt, and the District’s special “Measure BB committee,” comprised of architects, construction managers, and Board-appointed community representatives.

The initial RFP led us to a solar installer, but financial support for the project never materialized. The District was seeking partners for a Power Purchase Agreement, where an investor bears the costs and enjoys the tax benefits, and the District purchases the power from the system at a discounted rate.

“The whole effort just petered out after about six months,” says Hyatt. “We were reluctant to give up, but it wasn’t clear where to turn next.”

In mid-2009, Solar Santa Monica re-entered the picture. Per Susan Munves, Director: “The School District represented a big step forward towards the community’s solar installation goals if we could get the PPA to work. We had a history of successful collaboration on other energy initiatives, so we committed to another look.”

Solar Santa Monica led another round of analysis. Even with the economy in disarray, and rebates dropping, the potential for a no-cash-down agreement was reaffirmed. Ultimately, ReGeneration Finance joined contractor PermaCity Solar and the PPA partners were solidified. The combination of system size, starting price, escalation rate, and buy-out option was finally agreed upon.

“We are proud to have helped facilitate such an important development for our students and our community,” said Munves. “It tested our mettle and our patience, and in the end we triumphed.”