KY school district offsets rising electricity costs with solar installation
Federal tax credit allows district to recoup a portion of the investment
FUNDING SOURCE
Inflation Reduction Act
partner organization
Mountain Association
Electricity is getting more expensive in Inez, a rural city in eastern Kentucky not far from the West Virginia state line. Every year, the cost increases by at least 4%, sometimes it’s even more.
The steady increase in energy costs creates hardships for residents, making it difficult to balance a basic budget, let alone save money for the future. But this challenge isn’t restricted to individuals alone. Private businesses and public institutions, too, are finding it increasingly difficult to maintain budgets that are essential for their rural communities.
However, a new solar installation for the Martin County School district will help balance the rising costs of energy, while generating electricity. Students will also get a chance to experience and learn about the benefits of solar energy.
“Every little bit helps and the savings add up over time,” Larry James, superintendent at Martin County Schools said of the potential cost savings. “I don’t know of anybody else in eastern Kentucky doing it. We’re the first that we know of.”
And the whole idea for the installation, James admits, kind of fell into the district’s lap.
Savion, a renewable energy developer, had plans to transform the former Martiki coal mine into a 1,400-acre solar farm as a way to bring new economic and environmental opportunities to brownfield sites located in communities where coal mining was once the predominant industry . During discussions about how the community could benefit from adding more solar installations, the school district was added to the list.

Savion donated $100,000 towards the cost of the installation. Mountain Association, a local nonprofit economic development organization serving eastern Kentucky, facilitated the process and donated to the installation as well. Martin County Schools contributed the remaining $100,000. In addition, the district has the opportunity to recapture some of its investment through an Investment Tax Credit (or ITC), which was extended and expanded under the Inflation Reduction Act signed into law by President Joe Biden.
“The tax credit made this a feasible project for the district,” James said. “If this works, then we can expand to other schools a little bit at a time. We’re in the mountains, so the unknown is, we don’t know how much we’re going to get.”
Monitoring equipment for the solar array will be installed at the final stage so the district is still working off of forecasted savings, about $15,000 a year. As an added benefit, the solar array is planted directly behind the district’s Area Technology Center, which offers career and technical programs. The location provides easy access for maintenance, and it’s on display for students who may be interested in pursuing a career in renewable energy themselves.
“It was the best spot to place it. We can work on it easier and all the students can see it,” James said. “We plan to develop a curriculum to provide renewable energy career training for our kids.”

The Inflation Reduction Act (IRA), passed by the 117th Congress and signed by President Biden is a piece of federal legislation that aims to reduce inflation by lowering the cost of prescription medications, investing in domestic energy production, and promoting clean energy, among other objectives.