ANN ARBOR, MI – More than half a million in tax credits will help install rooftop solar panels at several buildings in Ann Arbor Public Schools in a move the district claims will save money and free up millions more for new construction.
The district announced receiving its first direct-pay check for $572,000 from an expiring federal program to help install arrays in a news release on Monday, Dec. 29.
The news comes just a couple of weeks after Ann Arbor School Board members got their first briefing on putting over $4.6 million toward solar panels at four schools over the next several months.
According to the district, accessing federal tax credits would help with close to a third of solar installation costs — particularly as Congress rolls back energy-related incentives — and contribute to revolving funds in the $1 billion capital bond approved by voters in 2019.
“In the simplest math terms, in our first 10 new construction or major modernization projects, when factoring both solar and geothermal exchange credits, we could be looking at a $3 to $5 million return from those incentives for each one of those projects,” Jason Bing, AAPS’ director of capital programs, said in a statement.
“So, for all 10, that’s $30 to $50 million, and that can fund a whole other major project all by itself in just those incentive dollars. It’s a significant amount of money.”
Crews broke ground earlier this year on new school buildings to replace the current Thurston, Mitchell, Logan and Dicken elementary schools, as well as renovations at Slauson Middle School.
Rebuilds of Lakewood, Lawton, King and Wines elementaries are expected to come within the next few years in addition to major work at Burns Park Elementary.
Most of the new construction also includes installation of geothermal systems as an alternative to traditional heating and cooling systems. Although not directly eliminated by Congress, geothermal credits the district has access to were included in the Inflation Reduction Act, much of which was repealed under last summer’s One Big Beautiful Bill.
The rest of the grant and incentive portfolio includes DTE energy electrification grants, utility credits and rebates, and in step with the district’s general renewable energy push tied to bond funds, another 4 million grant that’s going toward upping AAPS’ transition to replace its fleet of 130 school buses with new electric vehicles.
Earlier this month, school board members got a look at the $4.6 million bid for new solar panels at Huron and Pioneer high schools and Forsythe and Scarlett middle schools.
The 1,024-kilowatt capacity provided, according to the district, would generate enough electricity annually to power over 220 homes and sequester the carbon equivalent of more than 1,365 acres of forest.
The installations were to begin over winter break with expected completion dates this spring and summer.
During the Dec. 17 meeting, Bing said the plans target schools with rooftops, including some space where panels have already been installed, that are large enough to handle additional and updated solar capacity.
The half-million-dollar incentive was originally attributed to arrays installed in 2023, he said, and could apply to the new systems if installed prior to July 4, 2026.
“We’re excited at the overall anticipated electrical production of these systems, which will equate to 20% or greater of AAPS’ current electrical consumption,” Bing said. Additionally, he said it “will equal a savings annually of about $750,000 or greater.”
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