Near the state capital of Harrisburg lies the town of Steelton, Pennsylvania, the home of America’s first steel company and the birthplace of an industry that has long relied upon burning fossil fuels. Down the street from the 150-year-old steel mill is the campus of Steelton-Highspire School District (SHSD), which is forging ahead as  the first Pennsylvania school district to power 100% of its buildings and its buses with onsite renewable energy. The school district found its way to renewable energy out of financial necessity.

Steelton-Highspire School District (SHSD) sought creative solutions to overcome its annual budget gap of $10 million per year and provide the best educational experience for its diverse and predominantly low-income population of less than 1,500 students. SHSD found that energy efficiency and solar energy could provide significant operational cost savings to help the district balance its budget. The district’s 1.7 MW solar array powers 100% of the district’s electricity needs and is expected to provide $4 million in energy savings over the next two decades. 

One hundred years ago, the challenge of that generation was to manufacture and build the modern American economy. What our generation has to tackle is how to transition our economy to a greener, carbon-free economy…I am so proud of this community because it is living up to its legacy. One hundred years ago, we were on the forefront. Now, we are on the forefront again of building the new future and the new America.

Rep. David Madsen, 104th District of Pennsylvania House of Representatives 

We’re looking for small wins, projects that save the taxpayers and the district money. This project enabled us to funnel money that would typically go to energy costs to programs that support the students. We are saving money, and students are learning about our energy use and generation through real-time data associated with the solar array.

Superintendent Mick Iskric, Steelton-Highspire School District

Energy efficiency leads to solar savings

Over the last two decades, the district has been lowering its energy bills with energy efficiency upgrades. The district worked with the energy service company, McClure Company, to upgrade its facilities without any upfront costs through a guaranteed energy savings agreement. In this arrangement, McClure Company invests in the capital improvements for the energy upgrades and guarantees an amount of energy savings. The district uses its energy savings over time to help pay for the project over the life of the contract. 

The success of these efficiency projects led the district to explore more ways to save on energy costs and position themselves as a leader in energy independence. In the process of exploring onsite solar energy options, the district was able to find a beneficial use for a 4.7-acre landfill on school district property that was built in the aftermath of Hurricane Agnes in 1972. This area could not be used for future buildings or athletic fields, but it was suitable for installing a solar array that could meet 100% of the district’s electricity needs. Starting with energy efficiency helped the district to reduce its energy demand and optimize the size of the solar array it needed. SHSD entered into a power purchase agreement (PPA) with McClure Company to finance the project without any upfront costs. SHSD purchases the electricity produced by the array from McClure Company at a lower rate than it would pay the utility, resulting in immediate energy cost savings. Since the solar energy system went live in late 2021, the district was able to avoid two utility rate hikes and it is now saving $200,000 per year in energy costs.  

Protecting community health by eliminating harmful diesel pollution

SHSD is also leading the charge in transportation and it became the first school district in Pennsylvania with a 100% electric school bus fleet. In 2022, the high-need district was prioritized for funding in the EPA’s Clean School Bus Program and awarded a rebate of $2,370,000 to pay for six electric school buses and EV chargers. The onsite solar array produces enough electricity to charge the electric school bus fleet. With a fleet that is battery-powered, SHSD has eliminated the fuel costs for its bus fleet and is saving $20,000 annually.  

The industrial town is considered to be a climate and economic justice community, based on its elevated climate risk, high rates of asthma, and percentage of low-income households. The switch to zero-emission electric vehicles is reducing harmful diesel emissions throughout the community and protecting the health of children, bus drivers, and school staff.  In order to better understand the community health benefits, the district is partnering with Penn State Health on a study to research the local air quality and health benefits of eliminating diesel emissions from its buses. 

The next phase of the plan is to enable the electric school bus batteries to be used to send electricity back to the building and power critical energy loads during grid outages.  This will enable the school campus to serve as a resiliency hub for the community during power outages or natural disasters. 

This blog was originally published in March 2024 in the Powering a Brighter Future in Pennsylvania 2024 report and updated online  in April 2025.