Kauai schools to get free solar systems in trade for power buy

Dec 14 - McClatchy-Tribune Regional News - B.J. Reyes The Honolulu Star-Advertiser

A private company is outfitting all 15 public schools on Kauai with solar power systems at no cost to the state under an agreement expected to save about $30 million in utility costs through the next 20 years, state officials announced Tuesday.

Contractor Hawaii Pacific Solar will begin installing the photovoltaic systems at the schools in January and is scheduled to complete all work by summer of 2014.

Once installed, the state Department of Education will buy power from the company for about 16.9 cents per kilowatt-hour, the Governor's Office said.

The rate will rise to 28 cents per kilowatt-hour over the life of the 20-year contract.

"Compared to what would be the cost of dealing with carbon-based fuels, it's really stunning, the change," Gov. Neil Abercrombie said at a news conference.

Abercrombie said he expects the cost of imported oil to rise more rapidly through the next two decades as emerging economies in Asia increase demand for oil and coal.

"It's going to be exponential in its rise, and this little venue here in Hawaii is going to be a very, very difficult one to sustain," he said.

A pilot project also is under way to outfit four Oahu schools with photovoltaic panels, with work expected to be complete in 2012. Officials said the goal is to expand to all schools in Hawaii. Schools in the pilot project are Aiea High, Kahuku High and Intermediate, Kaimuki High and Waianae High.

"Certainly we're interest in expanding the use of alternative energy in all of our schools," state schools Superintendent Kathryn Matayoshi said. "Electricity is a big cost for us, so it really is a win-win."

Hawaii Pacific Solar will install the panels at no cost to the state and recoup costs under the terms of the power purchase agreement.

"There are federal and state tax credits that make it attractive for the private sector to own the system as opposed to the state writing a check to put it in itself," said Randy Moore, assistant superintendent for school facilities and support services.

"It's a good deal all around."

In 1997, Act 96 established a photovoltaic pilot program to set up solar PV installations in each county. According to the act, solar PV installations would generate adequate energy savings to be self-sufficient.

The department's power purchase agreement achieves the purpose and goals of Act 96, the Governor's Office said.