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Tunkhannock leaders say solar project nearing key utility review; district hopes for increased tax credit and state grant support

January 18, 2025 | Tunkhannock Area SD, School Districts, Pennsylvania


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Tunkhannock leaders say solar project nearing key utility review; district hopes for increased tax credit and state grant support
Tunkhannock Area School District officials told the board their large solar project is moving toward construction after recent engineering and permitting work, and they said pending utility review and potential state and federal incentives could materially improve the project's finances.

The administration reported that land-development approvals are largely complete and that only roof-permitting work remains for roof-mounted arrays. The district said it has a scoping call scheduled with Penelec (the local electric distribution company) to review grid interconnection and infrastructure steps. Officials said the district and its vendors have discussed roof structural requirements with warranty providers and expect to maintain existing roof warranties.

The administration also said the federal tax-credit picture is better than when planning began. “The tax credit didn’t exist really. It does now. And there’s a strong belief we’ll qualify for that 10 percent tax credit,” a district staff member said, adding that a net increase of roughly 5 percentage points could raise the project’s overall tax-credit benefit from about 40 percent to about 45 percent. District staff framed that additional 5 percent as materially significant to total project economics.

Officials also said they applied for a state grant that could provide about $300,000 in additional support. With the revised tax-credit assumptions and the possible state grant, district speakers said the effective public support on the roughly multi‑million‑dollar project could approach amounts that would significantly reduce the district’s up-front contribution and accelerate payback. At the meeting, staff cited an estimated long-term electricity-cost savings in the range of $900,000 to $1,000,000 per year if the project performs as expected.

The project team remains cautious about timing. Administration staff said they are aiming to have the district’s current energy contract end and the solar system operational by Nov. 26, the date the existing direct‑energy contract runs out, but that the schedule depends on Penelec’s review and approval.

Board members asked for follow-up and were told the administration will report back after the January scoping call with Penelec and the district’s engineering and vendor partners.

Background: The solar plan includes both roof- and ground-mounted panels and would reduce the district’s future utility purchases if it reaches full production. Administrators said some component costs have increased as suppliers’ sourcing has shifted, but that the tax-credit and possible state grant together make the project’s net cash flow positive in their current projections.

Next steps: District staff will report results of the Penelec scoping call to the board and continue coordinating necessary permits, vendor agreements and financing steps.

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