Solar proposed to school board

Creston School Board members needed time to research and think after a presentation last Monday by Terry Dvorak, owner of Red Lion Renewables.

Dvorak proposed a solar power service agreement in which Red Lion Renewables would place a solar field in the grassy area west of the high school, middle school and bus barn.

In the proposed agreement, Red Lion would be financing the project. “The school district doesn’t have any out of pocket,” Dvorak said. “It could amount to the tune of either $38,000 or $46,000 a year in savings.”

The project is contingent upon securing a USDA grant. “USDA has a grant program we can apply for but the school can’t,” he explained. “The grant has an application process. We have to apply for it before March. We may not know until July or August.”

The solar proposal was built based on the school’s previous consumption and includes a battery system for demand charge. The school would be purchasing the power from Red Lion at a lower cost than they are now with Alliant Energy.

Red Lion has been around for eight years and primarily provides solar power for schools and cities. “We have systems that are five years old and we have 101 systems that generate electricity in Iowa right now,” he said. “We probably do 80% or more of the power purchase agreements in Iowa.”

The school spends just more than $300,000 per year on electricity among the middle school, high school and bus barn, meaning Red Lion’s proposal could cut costs by 15%.

“I don’t want to oversize it. The best scenario is that at the end of one year, we made one kilowatt hour more than you needed,” Dvorak said. “You can bank those kilowatt hours until April 1 and you start over again.”

Board member Amanda Mohr questioned what is in it for Red Lion, as the endeavor is slated to cost $5 million.

“Tax credits,” Dvorak explained. “I have investors that want tax credits. They make enough money doing something else, they’d rather their IRS bill go to you and doing something meaningful as opposed to going into the ether and bridges to nowhere for some politician to decide what to do with.”

After five years, the tax incentive will be gone, and the school will be given the opportunity to purchase the system; however, Dvorak said the school is not obligated to buy if it doesn’t make sense financially.

Board member Galen Zumbach questioned the day-to-day logistics of the project, asking who is responsible for hail damage and mowing.

“This is through a power purchase agreement where I own the equipment. You’re really just agreeing to buy the electricity and let me put my equipment on your grounds.” Dvorak answered. “I do carry wind and hail. They’re windshield glass, so 1-inch hailstone, no problem. If it gets to baseball size then we’ll have issues, but my insurance will cover it.”

As far as mowing, Dvorak said the panels are three feet off the ground — plenty of space to get a mower underneath. “Just keep the weeds down so they aren’t more that three feet tall so they don’t start shading the panels and reducing production,” he said. “That’s all I really require.”

Board member Brad James asked if the project could be scaled should the school’s electricity needs increase over the 20 year contract. Dvorak said there was plenty of space to increase the solar array if necessary.

While the board was slated to vote on approving a letter of intent with Red Lion, they postponed the vote to their Jan. 16 meeting to allow the members time to do their own research.

“I’d like to learn a little more,” James said. “I’d like to be able to do my own homework. Then I know the right questions to ask you.”

Dvorak said they needed to be comfortable with the project. “This is a 20 year relationship or beyond,” he said. “Yes, it’s no money out of pocket for the school, but I’d like to get started on a good foot.”

Should the proposal be approved and the grant be secured, the project could begin before the end of 2023 should supplies be available, but due to inventory and shipping delays, it may be spring 2024 before it’s able to begin.

“It’s a big opportunity, but none of us understand it,” Mohr said. “We need to review it.”