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Reducing Emissions and Saving Energy and Dollars in San Jose

The high upfront costs of buying and installing solar panels can be a big hurdle for anyone considering this alternative energy source. But the San Jose Unified School District, through an innovative partnership with Bank of America and Chevron Energy Solutions, has created the largest network of solar-powered and energy-efficient K-12 educational facilities in the U.S.

The 5.5 megawatt solar panel system will cut San Jose's need for utility-generated electricity by 25 percent. That is expected to reduce the district's carbon emissions by about 37,500 tons over the life of the panels. (Source: Chevron Energy Solutions)

Bank of America's financing for this project, through our Leasing group, is also allowing San Jose to realize energy cost savings - estimated to be $25 million over the next three decades - without the need for budget-breaking, upfront capital investments that would otherwise top $30 million. The cost savings are possible - and predictable - because of a bank-arranged service contract over 20 years that will enable the district to purchase power at fixed rates significantly below market utility rates. Under the partnership, Bank of America will own the solar equipment, a commitment making it eligible for $4.2 million in incentives obtained through the California Solar Initiative and from federal investment tax credits. Chevron Energy Solutions' role involves designing, building, operating and maintaining the solar panel system.

"This is living proof that schools can improve their facilities and help the environment without tapping their capital budgets," said Jorge Gonzalez, president of the district board of education.

The benefits also realized by the students of San Jose. Notes Gonzalez, "The program is an educational opportunity. It can help teach our school communities about energy efficiency and renewable power."

In the years ahead, students will learn about science, technology and renewable energy by monitoring production of solar energy, observing how the systems work, and comparing production and capacity on sunny and cloudy days.

The first phase of the project was completed in early 2008, with the installation of two megawatts of solar arrays on rooftops and parking lot shade canopies at four district schools - Gunderson, Pioneer and Leland High Schools and San Jose High Academy.