By Thomas Jackson and Bruce Dickinson
Across California, public agencies have invested in energy modernization projects, including solar, battery storage and energy efficiency, to cut operating costs and protect their budgets against rising utility rates. The Inflation Reduction Act (IRA) provides substantial tax credits in the form of direct-pay incentives covering 30 percent of these project costs, with an additional 10 percent bonus credit for some customers in qualifying regions. To secure these tax credits and get in line for eligible equipment before the looming deadlines, public agencies must act now.
Over the past two years, interest in developing and installing clean energy projects has surged. Local educational agencies hoping to benefit from current federal funding programs or lock in today’s construction prices need to act quickly and have at least 5 percent of their project “in construction” by July 4, 2026. This means the project should be under contract and construction started by June.
Waiting too long risks missing key windows to secure financing and achieve interconnection approvals.
A realistic project timeline
From initial feasibility to fully commissioned systems, a typical project spans multiple stages, each with its own lead times.
Here’s a simplified breakdown:
- Request for Proposal (RFP) issuance and selection
- Preliminary scope and budget analysis and development
- Contracting (Energy Service Agreement, or ESA)
- Engineering and permitting
- Procurement of long-lead equipment
- Construction and commissioning (Permission to Operate, or PTO)
For an LEA to complete all stages by 2030, an RFP must be awarded and a contract must be finalized by late April or early May 2026. Delaying may cause missed equipment ordering windows, permitting delays and construction start dates slipping into the third quarter of 2026. Many of the critical components of solar and battery projects, including solar modules, steel for carports, inverters, transformers and switchgear, have multi-month lead times.
Failure to contract early often results in:
- Higher equipment costs
- Fewer installation options
- Delays in engineering or interconnection
- Limited control in securing quality energy service providers
- Potential for missed deadlines
The bottom line: Start as soon as possible.
While public agencies with projects under construction by July 2026 have until 2030 to ensure projects are operational, the runway is shorter than it looks. Acting now gives LEAs the best chance to:
- Hedge against double-digit utility increases
- Capture available funding
- Lock in predictable project costs
- Keep timelines realistic and achievable
- Remain financially or operationally feasible
Because many public-sector projects include multiple clean energy scopes, LEAs need to think strategically about which sites already have solar but may need energy storage, which larger sites offer the best return with adding energy storage only, and adding site-by-site scopes that meet IRA program requirements and include refurbishing older solar photovoltaic (PV) systems.
As Elvis Presley famously sang years ago, “it’s now or never” when it comes to capturing IRA funding.
Thomas Jackson is the corporate vice president at Climatec Energy, BOSCH Building Technologies and Bruce Dickinson is the president of Eagle Energy Solutions, LLC. Climatec Energy is a longstanding CSBA Silver Level Business Affiliate.
