Innovative Financing Approach for K-12 Energy Efficiency

Overview

Douglas County School District (DCSD), NV financed $10.7 million in the first phase of energy efficiency improvements through an energy savings performance contract (ESPC) paired with a tax-exempt installment-purchase agreement (IPA). The project achieved energy cost savings of nearly $510,000 in the first year, exceeding the $456,000 in ESPC guaranteed savings covering the IPA principal and interest payments. The financing enabled DCSD to upgrade aging facilities – including student-occupied buildings in urgent need of maintenance – and also address rising utility costs. Unlike bond financing, an ESPC did not require voter approval, which allowed the upgrades to be implemented more quickly than with bond financing and to proceed despite a limited District budget. The project also supported the local economy, with 70 percent of the project sourced by local businesses (labor, supplies, and services).

Tools:

Learn more about the District's financing approach by reading the DCSD Implementation Model: A Lesson Plan in Financing K-12 Energy Efficiency 

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Sector:

Education

Barrier:

Financing or paying for a project

Tool type:

Financing

Building Type:

K-12 schools