Districts stall on HVAC modernization for a few reasons: modernization requires significant capital, and the path for upgrading systems requires alignment across a wide range of stakeholders, including administrators, engineers, installers, and operators. Several blog posts and resources in NCSI’s library explain options for making upgrades accessible and describe the additional tools and resources needed to help support decision-making and action.
Modern systems: heat pumps and electrification
All-electric heat pumps move heat rather than burning fuel, delivering both heating and cooling from one system while eliminating on-site combustion, improving air quality, and — especially for ground-source systems — lowering long-term operating costs. HVAC Choices for Student Health and Learning provides an orientation for non-technical decision-makers: it covers the research linking HVAC to health and learning, the major technology options, and a framework for weighing life-cycle costs against available funding.
Energy tax credits via Elective Pay
Federal energy tax credits are available for reimbursing public schools for a substantial share of clean-energy upgrades, including ground-source heat pumps, through a mechanism called Elective Pay (also known as direct pay). UndauntedK12’s Ground-Source Heat Pumps: A Modern HVAC Choice is a one-page overview to share with stakeholders; Ground-Source Heat Pumps: Full Speed Ahead explains the technology and the roughly 30% (and up to 50%) credit opportunity; the Guide to Maximizing Energy Tax Credits walks project teams from planning through filing; and Lead a Successful Elective Pay Process lays out the filing steps. The Resource Spotlight on ground-source heat pumps pulls these threads together with district case studies.
Energy savings performance contracting (ESPC)
Tax credits aren’t the only route. Under performance contracting, a district partners with an energy services company (ESCO) that identifies, finances, and implements efficiency improvements, with the project paid back over time from the “avoided” utility costs generated by the upgrades. Once the contract is paid off, those savings flow into the district’s operating budget. The U.S. Department of Energy’s Performance-Based Contracting: A Primer for K-12 Schools and its stage-by-stage ESPC Toolkit outline best practices and tips for using this approach. For a real-world walk-through, the feature Performance Contracting: A Partnership to Improve Facilities and Unlock Funding Opportunities shows how one district combined an ESCO partnership with federal tax credits.
Additional tools and resources are needed.
Early findings from the HVAC Change Lab point to several common barriers that districts face in upgrading HVAC systems:
- Districts have difficulty making the financial case for high-efficiency systems during the budgeting and planning phase
- Institutional habits pull projects back toward familiar, lower-performing solutions
- A lack of technical standards and specifications get in the way of translating goals into consistent project requirements
- Project delivery failures in both installation and handoff erode the value of even well-designed projects.
Taken together, the findings point to gaps in shared field resources — tools, standards, and templates — that any district could draw on to advance HVAC modernization.
In making HVAC equipment decisions, districts benefit from evaluating life-cycle costs, preparing for both chronic and acute conditions, and knowing where the funding levers are. Rather than choosing the cheapest system to install, districts can use a life-cycle cost analysis that accounts for installation, operation, and maintenance over the system’s full life; the HVAC Choices guide provides a framework.