Dunsborough Primary School has reduced its energy consumption from the grid by 20 percent after they installed a 26.5 kilowatt solar PV system.
Dunsborough Primary School board chairman Michael Baldock said the solar system they installed was connected to the internet and had a web portal and an app so students could see what the panels produced.
Mr Baldock said it was important to see the data that came from the solar panels so students could understand the benefits and limitations and apply it to their own lives.
"Our costs and consumption have reduced 16.5 per cent. Based on (that), electricity cost savings will exceed $5,000 over a full year," he said.
"Dunsborough Primary will monitor the solar systems output and school demand over a full 12 months and then plan for the next stage."
Installation of the solar panels was made possible through donations from several community groups including the Bendio Bank's Busselton and Dunsborough Community branches which donated $20,000 towards the project.
Naturaliste Renewable Energy Group chairman Christian Fletcher donated a series of prints which raised $6000 for the project and the Dunsborough Lions Club donated $5000.
Bendigo Bank business development manager Luke Pearce said they had a community investment program, so they could arrange funding for the project.
Mr Pearce said the bank would use the project as a "blueprint" for future projects.
"This is a prime example of how our wonderful town can come together to achieve some really positive outcomes," he said.
"Financially, environmentally and educationally, this project will make Dunsborough a better place."