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From Deferred Maintenance to  
Long-Term Strategy
Missouri districts are grappling with 
aging buildings, deferred maintenance, 
and volatile utility costs at the same 
time they are expected to provide 
healthier and more reliable learning 
environments. Many facilities still 
depend on legacy boilers or rooftop 
units that are expensive to maintain and 
increasingly vulnerable during extreme 
weather. Performance contracting, 
where an energy services partner 
guarantees savings and uses those 
avoided costs to pay for improvements, is 
a proven way to bundle HVAC, controls, 
lighting, and envelope upgrades into one 
integrated, budget‑neutral program.
Why Geothermal Fits K–12 Campuses
Ground‑source geothermal heat pump 
systems leverage the stable temperature 
of the earth rather than fluctuating 
outdoor air, which can significantly 
reduce energy consumption. For 
schools, the benefits include lower 
and more predictable utility costs, 
longer equipment lifespans, and 
improved comfort and indoor air 
quality. Historically, higher first cost 
was a barrier, but IRA Direct Pay and 
performance contracting now allow 
districts to offset a large portion of 
upfront investments while locking in 
long‑term savings.
Springfield Public Schools: Scaling 
Geothermal with IRA 
Springfield Public Schools offers a 
leading example of how a district can use 
IRA Direct Pay to accelerate geothermal 
adoption. Working with Veregy, Springfield 
implemented its first geothermal 
ground‑source heat pump project and 
received a $4,129,879 reimbursement check 
from the federal government.
The district used those funds for a 
Phase 2 Veregy project completed in 
August 2026, expanding geothermal 
HVAC to additional campuses. That 
Phase 2 project is expected to qualify for 
an additional $5+ million in IRA Direct 
Pay funding. Combined, Springfield is 
on track to secure more than $9.2 million 
in Direct Pay benefits for geothermal 
investments with Veregy.
Branson R‑IV: Phased Improvements 
and IRA Rebates 
Branson R‑IV School District illustrates 
how a phased, master‑planned approach 
can steadily modernize facilities while 
capturing IRA value along the way. Serving 
roughly 4,800 students, Branson partnered 
with Veregy beginning in 2015 to develop 
master plans and implement a multi‑phase, 
guaranteed performance contract program 
totaling more than $26 million in 
improvements. Early phases focused on 
roofing, rooftop unit replacement, building 
automation, and renovations to reduce 
maintenance costs and increase reliability.
As Branson expanded into geothermal 
and advanced controls, the district was 
able to tap IRA Geothermal Investment 
Tax Credits for multiple phases. To 
date, Veregy’s geothermal system 
improvements in Branson have received 
more than $4 million in federal IRA tax 
credits across two project phases. These 
incentives support a long‑term strategy 
that includes new geothermal wells, LED 
lighting upgrades, and system integration 
designed to strengthen comfort, 
efficiency, and resilience districtwide. 
Tarkio R-I: Smaller Districts Benefit 
the Same as Larger Ones
Tarkio’s mechanical system had never 
operated properly, often forcing the 
district to cancel school during the cold 
winter months because its buildings 
could not be adequately heated. The 
district was also spending an average of 
five figures annually on maintenance 
and repair calls. With funding available 
through the IRA, Veregy designed and 
installed a geothermal system to replace 
the aging VRF system.
Since the upgrade, the buildings have 
maintained comfortable temperatures, and 
the district has not had to cancel school 
because of mechanical failures. Tarkio 
also received $1.1 million in IRA Direct 
Pay funding, reduced its utility costs, and 
should not need to replace the geothermal 
heat pumps for approximately 25 years.
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