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Safer, Healthier Schools at No Cost to Taxpayers? Welcome to an ESIP
Thomas Lambe,
Business Administrator / Board Secretary
What if you had the opportunity to renovate your home with no out-of-pocket expenses because the energy savings of the new LED lighting, boilers, HVAC system, windows, roofs, and perhaps solar, would pay for the full cost of the project, with extra savings still in your pocket? Additionally, you would be contributing to a greener environment by reducing the carbon footprint. Sounds too good to be true? Well, schools across New Jersey are using such a concept to upgrade their facilities, without raising taxes, through an Energy Savings Improvement Program (ESIP) that is sponsored by the State of New Jersey’s Board of Public Utilities Clean Energy program.
ESIP RFP
After advertising a Request for Proposals in September, the RIH regional school district opened proposals in early November from three reputable Energy Savings companies (ESCO's), who are recommending upgrades that would modernize our buildings, with the cost of the projects paid from reduced utility bills. During the next several months, the district administrators and board committees will be interviewing the vendors and vetting the potential projects. A final decision on which projects are being entertained will likely be made during the spring of 2022. Some of the projects being considered are LED lighting, solar panels, and HVAC upgrades.
LED Lighting
Since ESIP's were first introduced in New Jersey about a decade ago, LED lighting has proven both to be very easy to install and also to be the biggest driver of cost savings. Some of the installation costs would be subsidized by SmartStart rebates from the New Jersey Board of Public Utilities Clean Energy program.
Solar
Solar power is another project that many districts consider. A third-party solar company may be willing to install solar panels at no cost to the school district because they would have the ability to resell the produced energy on the open market. Still, the district must carefully consider the ramifications that solar would have on the cost of its roofs and its parking lots if solar were to be considered for those locations.
HVAC Costs
Although energy savings reduce our costs, the installation of air conditioning would increase them. So this impact would have to be factored in if HVAC upgrades are to be considered. In any case, the operating costs of HVAC with an ESIP would cost the district less than HVAC upgrades without an ESIP.
Health and Student Achievement
In addition to costs, projects must be evaluated based on their impact on air quality, health, and student achievement. With the COVID-19 pandemic making schools scrutinize their ventilation systems and air quality, few would argue against providing better, cleaner airflow that positively impacts the health and safety of everyone in our school community. Few would argue against cooler classrooms that positively impact instruction and student achievement during the hot months of September and June. The costs of these upgrades could be offset, to some degree (pun intended), by the savings from the ESIP projects.
Low Risk
Although debt would be issued, the district has little risk because the ESCO that is awarded the project would guarantee savings. Worst case financial scenario - if the projected savings are not met, the ESCO would reimburse the school district to meet the debt service obligations - without taxpayers having to foot the bill.
We will continue to keep you informed as we consider an ESIP and upgrades to our buildings.
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