School EPCs can now have a 25-year payback, up from 18

Governor Hochul signed the Students for Solar Act into law yesterday,
extending the payback period for New York school districts’ energy performance contracts.

September 28, 2026, Governor Kathy Hochul signed the Students for Solar Act (S.1986) into law. It extends the period New York school districts can use utility savings to pay for energy performance contracts from 18 years to up to 25 years.

The bill was sponsored by Senator Pete Harckham and Assemblymember Judy Griffin, who championed it for nearly a decade, and it was pushed across the finish line with help from student advocates across the state.

It sounds like a technical change. It isn’t. Payback term is often the single number that decides whether an EPC gets built, how big it gets, or whether it dies in committee.

What it means for your district

  • Have a project in development? It may be able to grow. Measures that were cut to keep the deal inside 18 years may fit back in at 25.

  • Evaluated an EPC before but couldn’t make the numbers work? Run them again. A project that fell just short at 18 years may now be self-funding.

  • Solar and other long-payback measures are back on the table. Solar arrays, HVAC replacements and building envelope work often carry paybacks too long to fit an 18-year term on their own. A longer term gives them room.

  • More capital work without new taxpayer dollars. Because EPC projects are paid for out of energy savings, a longer term lets districts address more aging infrastructure without adding to the local tax burden.

For more than 25 years, Energia has sat on the district’s side of the table as owner’s representative and engineer of record. If you want to know what this law changes for your buildings, your budget, or a project already underway, we’d be glad to take a second look with you.

Contact me today to learn the specific new options for your district around energy performance contracting.

Kendra McQuilton
Chief Executive Officer