The energy storage part of the deal is provided through SolarCity’s “Demand Logic” partnership with Tesla Motors. The company is expected to install Powerpacks (picture on the right).
The Powerpacks will take advantage of the district’s time-of-use electricity billing system by storing excess electricity generated by the solar arrays during the day and dispatching it to the grid when the rates are higher.
The company didn’t release the school’s electricity rates, but last time Tesla made an energy storage deal with schools in California, they were seeing utility rates varying from a low of $0.12 cent per KWh during the night to as much as $0.42 cent per KWh during peak usage.
Temecula Valley decided to use SolarCity’s Power Purchase Agreement, which doesn’t require an upfront investment from the district and they will pay for only the power the systems produce at a fixed rate that is “less than what it is currently offered by the local utility”.
The deal is expected to save the district $520,000 the first year and as much as $35 million during the 25 years agreement.
Janet Dixon, Director of Facilities Development at Temecula Valley Unified School District, said about the announcement:
“Like many schools districts across the county, Temecula Valley has faced increasing budget cuts and rising operational expenses.With SolarCity, we found a creative way to cut our electricity bills. This money will free up funds for the district to invest in student programs and curriculum.”
The school district will save money which they will then invest in student programs and all that by consuming cleaner energy.