Multiple concurrent trends have created an unprecedented opportunity to improve K-12 public school facilities. The combination of new government funding, highly advanced technologies, and an increasing focus on sustainability mean that today, district leaders have a unique chance to renew school buildings, reduce energy consumption, lower operational costs, and create healthier, more comfortable learning environments for students.

New government incentives

For years, schools have struggled with aging infrastructures and high energy costs. Today, several key federal incentive programs are not only making energy-efficient upgrades possible, but also financially advantageous. These programs are helping school districts modernize their facilities while saving millions of dollars over time. These programs include:

1. Investment Tax Credit (ITC)

While schools are non-taxable entities, they can still benefit from the ITC through third-party Power Purchase Agreements (PPAs) or direct purchases of renewable energy systems. A PPA allows a district to install solar energy with little to no upfront cost, while the third-party developer receives the tax credit, helping offset installation costs. This approach has enabled many schools to cut their electricity bills by as much as 50% over time, resulting in significant savings.

2. Energy Efficiency and Conservation Block Grant (EECBG)

The EECBG provides funding for energy efficiency projects, such as lighting upgrades and HVAC improvements. These grants allow schools to make immediate upgrades that result in long-term savings. In some cases, schools utilizing EECBG funds can reduce energy usage by up to 30% for specific systems, freeing up more resources to reinvest in education.

3. Green Bonds

Green Bonds offer school districts a sustainable financing option to fund large-scale energy projects, such as solar installations or building retrofits. Kelsey Bailey is CFO of the Little Rock School District. Kelsey Bailey is CFO of the Little Rock School District. By issuing these bonds, schools can access favorable interest rates and spread payments over time, making energy-efficient infrastructure upgrades both practical and affordable.

4. Renew America’s Schools Grant Program

This program is designed to help schools finance energy efficiency and renewable energy projects. A recent example involves the Little Rock School District (LRSD), which won a $300,000 prize and secured an additional $11.25 million in federal awards. With these funds, LRSD will implement projects like HVAC upgrades and building envelope improvements, dramatically enhancing energy performance across their facilities.

Kelsey Bailey, CFO of the Little Rock School District, highlighted the significance of this initiative: “This grant will allow us to reduce energy consumption while redirecting savings into programs that benefit our students. It will also create a healthier, more comfortable learning environment for everyone.”

5. State Energy Program (SEP)

The SEP provides technical and financial assistance to states, which distribute funds to local school districts for energy projects like insulation upgrades, lighting retrofits, and renewable energy installations. By utilizing SEP funds, schools can enhance energy efficiency without depleting operational budgets, allowing districts to focus their financial resources on core educational priorities.

Both financial and educational benefits

The financial benefits of these energy-efficient upgrades are enormous. Schools can save millions of dollars over time, which can then be reinvested in educational resources, technology, and student services. For example, LED lighting retrofits can reduce electricity use by up to 75%, and HVAC upgrades can cut energy consumption by as much as 40%.

According to Bailey, “We have a fiduciary responsibility to be good stewards of the resources we have. By embracing energy efficiency, we can provide our children with better educational opportunities and ensure they reach their full potential.”

Beyond the cost savings, energy-efficient upgrades improve the overall learning environment. Comfortable temperatures, better lighting, and improved air quality contribute to a more conducive learning space, where students are better able to focus and thrive.

Seize the moment

School leaders are at a critical juncture. The combination of government support, technological advancements, and a desire for sustainability has created a once-in-a-lifetime opportunity to transform K-12 facilities. By tapping into these federal programs, districts can position themselves for long-term success, both financially and environmentally.

Now is the time for educational leaders to act. Schools can—and should—lead the charge in the energy efficiency revolution, securing a sustainable future while ensuring their facilities offer the best possible environments for student learning and success. For years, schools have struggled with aging infrastructures and high energy costs. Today, several key federal incentive programs are not only making energy-efficient upgrades possible, but also financially advantageous. These programs are helping school districts modernize their facilities while saving millions of dollars over time. These programs include:

1. Investment Tax Credit (ITC)

While schools are non-taxable entities, they can still benefit from the ITC through third-party Power Purchase Agreements (PPAs) or direct purchases of renewable energy systems. A PPA allows a district to install solar energy with little to no upfront cost, while the third-party developer receives the tax credit, helping offset installation costs. This approach has enabled many schools to cut their electricity bills by as much as 50% over time, resulting in significant savings.

2. Energy Efficiency and Conservation Block Grant (EECBG)

The EECBG provides funding for energy efficiency projects, such as lighting upgrades and HVAC improvements. These grants allow schools to make immediate upgrades that result in long-term savings. In some cases, schools utilizing EECBG funds can reduce energy usage by up to 30% for specific systems, freeing up more resources to reinvest in education.

3. Green Bonds

Green Bonds offer school districts a sustainable financing option to fund large-scale energy projects, such as solar installations or building retrofits. Kelsey Bailey is CFO of the Little Rock School District. Kelsey Bailey is CFO of the Little Rock School District. By issuing these bonds, schools can access favorable interest rates and spread payments over time, making energy-efficient infrastructure upgrades both practical and affordable.

4. Renew America’s Schools Grant Program

This program is designed to help schools finance energy efficiency and renewable energy projects. A recent example involves the Little Rock School District (LRSD), which won a $300,000 prize and secured an additional $11.25 million in federal awards. With these funds, LRSD will implement projects like HVAC upgrades and building envelope improvements, dramatically enhancing energy performance across their facilities.

Kelsey Bailey, CFO of the Little Rock School District, highlighted the significance of this initiative: “This grant will allow us to reduce energy consumption while redirecting savings into programs that benefit our students. It will also create a healthier, more comfortable learning environment for everyone.”

5. State Energy Program (SEP)

The SEP provides technical and financial assistance to states, which distribute funds to local school districts for energy projects like insulation upgrades, lighting retrofits, and renewable energy installations. By utilizing SEP funds, schools can enhance energy efficiency without depleting operational budgets, allowing districts to focus their financial resources on core educational priorities.

Both financial and educational benefits

The financial benefits of these energy-efficient upgrades are enormous. Schools can save millions of dollars over time, which can then be reinvested in educational resources, technology, and student services. For example, LED lighting retrofits can reduce electricity use by up to 75%, and HVAC upgrades can cut energy consumption by as much as 40%.

According to Bailey, “We have a fiduciary responsibility to be good stewards of the resources we have. By embracing energy efficiency, we can provide our children with better educational opportunities and ensure they reach their full potential.”

Beyond the cost savings, energy-efficient upgrades improve the overall learning environment. Comfortable temperatures, better lighting, and improved air quality contribute to a more conducive learning space, where students are better able to focus and thrive.

Seize the moment

School leaders are at a critical juncture. The combination of government support, technological advancements, and a desire for sustainability has created a once-in-a-lifetime opportunity to transform K-12 facilities. By tapping into these federal programs, districts can position themselves for long-term success, both financially and environmentally.

Now is the time for educational leaders to act. Schools can—and should—lead the charge in the energy efficiency revolution, securing a sustainable future while ensuring their facilities offer the best possible environments for student learning and success.