Case Study

Tioga Energy Goes to School

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Challenge	Deploying a large solar array without a sizable up-front capital investment
Solution	SurePathSM Solar Power Purchase Agreement from Tioga Energy
Benefits	No upfront capital investment or ongoing maintenance responsibilities Hedge against rising utility electricity costs Helps fulfill the School’s environmental stewardship goals Sends a positive message to families of current and perspective students Offers hands on learning opportunity to foster a future renewable energy workforce.

Background

The Athenian School is a college preparatory school with 450 students spanning grades 6 through 12. It’s located on a scenic 75-acre campus in Danville, California, 32 miles east of San Francisco. Environmental stewardship is one of the founding pillars of the school which opened in 1965. When Bob Oxenburgh joined the staff in 2004, as director of finance and operations, he recognized an opportunity to fulfill that goal through solar electric power. "It was the duty of the School to do what we could to become green," says Oxenburgh.

Challenge

After extensive discussions with the Board of Trustees and thorough research into the solar power market, Oxenburgh invited five firms to bid on a photovoltaic system that would supply half of the School’s electrical needs. The challenge was to find a way to deploy the large system without a sizable up-front capital outlay, as the School had other capital priorities for its cash resources.

Solution

One bidder clearly stood out. REC Solar, headquartered in San Luis Obispo, California, specializes in grid-tied residential and commercial solar power installations. It is among the nation’s largest solar integrators with over a dozen offices in six states. REC teamed with Tioga Energy, a Power Purchase Agreement (PPA) provider, on the bid. "REC and Tioga came in with the most complete package," says Oxenburgh.

REC Solar proposed to engineer and install the system, while Tioga Energy proposed to finance the project through a SurePath™ Solar Power Purchase Agreement. The agreement would require no upfront capital outlay by the School. Under the long-term contract, Tioga would own and operate the system and sell the renewable electricity generated to The Athenian School at fixed rates over a 20-year period. Such a situation was exactly what the School was looking for.

Convinced that the partnership of Tioga Energy and REC Solar was the right choice, Oxenburgh entered into intense negotiations with Tioga. "It was a great relief to have someone across the table who knew exactly what we needed to do," says Oxenburgh. "They were good people to work with and they were determined to get this project done."

With the contract completed, the project moved forward until Mother Nature intervened. The plan called for 1,300 ground-mounted solar panels covering 30,000 square feet, generating 220 kilowatts of electricity. The panels would be positioned on a hillside above the School and arranged in the shape of an "A" for Athenian. But, a geotechnical survey suggested that traditional PV foundations would be unsuitable for the existing soil conditions.

The initial recommendation was to replace the soil on the hillside. "It raised some serious financial issues," says Oxenburgh. The added cost of this solution nearly scuttled the project. "Tioga and REC Solar struggled hard to make this work, and came up with a relatively lost-cost alternative." The solution was to use over 100 reinforced concrete piers extending 15 feet into the earth.

Benefits

Given past experience, electricity rates are sure to rise in the future. The more public utility rates increase, the more the Athenian School will save since the fixed-rate PPA provides a hedge against rising electric costs. Tioga enables the School to lock in long-term electricity rates.

The Athenian School doesn’t have the deep pockets for-profit organizations might. Eliminating upfront capital investment and ongoing maintenance responsibilities was a huge advantage for the School and made one of the largest photovoltaic installations at a private school in California possible.

The School is proud of its heritage and committed to the five pillars, which include environmental stewardship. Over the next 20 years, the solar power system is expected to avoid generating over 66 million pounds of carbon dioxide. "It will be like taking 55 passenger cars off the road each year," says Oxenburgh.

This green effort sends a positive message to families of current and prospective students, not to mention the surrounding communities. "As an institution that actively demonstrates a concern for global warming, I think it helps us in our recruiting efforts," says Oxenburgh.

About Tioga Energy

Tioga Energy enables commercial, government and non-profit organizations to reduce their energy costs while lowering carbon emissions. Through the SurePath^SM solar power purchase agreement (PPA), Tioga Energy owns and operates renewable energy systems that provide organizations a hedge against energy price volatility and accelerate their access to clean energy without any capital outlay. For more information call 877.333.9787 or contact us.