Empowering Nonprofits with Solar Energy: Tax Credits, Resilience, and Savings

For nonprofits, particularly churches and community centers, investing in solar energy has become more feasible than ever, thanks to new tax incentives. Renewable energy not only reduces long-term costs but also strengthens resilience—an essential asset for organizations that serve as community pillars in times of crisis. With the Investment Tax Credit (ITC), Direct Pay options, and bonus incentives, nonprofits now have multiple avenues to access funding and make sustainable choices. Here’s how these opportunities add up for your organization.

Investment Tax Credit (ITC) for Nonprofits: Saving 30% on Installation Costs

Historically, the ITC has been available only to for-profit companies, but now nonprofits can also benefit from this tax credit. Under the ITC, nonprofits can offset 30% of the cost of their solar installations, giving them a substantial financial boost. Although nonprofits don’t have tax liabilities, the ITC can be received as a Direct Pay Option, which allows them to benefit as if they had a tax liability to offset, effectively putting cash back into their hands to reinvest in their mission.

The Direct Pay Option has redefined access to solar incentives for nonprofits. Instead of applying the ITC to tax liability, nonprofits can receive a 30% cash payment directly, allowing them to reduce up-front costs by nearly a third. This option opens the door for nonprofits like churches, schools, and community centers to afford solar installations and reap the benefits of clean energy and cost savings.

Boost Your Benefit with Adders for U.S.-Manufactured Products and Low-Income Communities

Additional credits, called “adders,” are available for nonprofits meeting certain criteria, making solar even more accessible:

• U.S.-Manufactured Products Adder: Projects that use solar panels and equipment made in the U.S. qualify for an additional 10% credit. This adder not only supports American manufacturing but also provides nonprofits with extra financial support, reducing their installation costs further.

• Low-Income Community Adder: Nonprofits in low-income areas can qualify for an additional 10-20% credit. This benefit is especially useful for organizations that serve under-resourced communities, as it lowers project costs and increases accessibility to sustainable energy, creating a win-win for both the nonprofit and its community.

Combined, these incentives allow nonprofits to offset up to 50% of their installation costs, meaning for every dollar spent, 50 cents can be returned in benefits. For a church installing a $100,000 solar system, this could mean receiving up to $50,000 back. Such savings allow nonprofits to focus on mission-driven goals rather than high energy costs!

The Power of Resilience: Lessons from Recent Hurricanes

For Florida-based nonprofits, energy resilience has become essential, especially in the wake of hurricanes such as Ian, Helene, and Milton. Solar energy, particularly when paired with battery storage, enables nonprofits to stay operational and provide shelter, resources, and support when it’s needed most. With a solar-plus-storage system, churches and community centers can continue serving their communities, even during extended outages, while also saving on electricity costs year-round.

Who We Are: Solar First

As a licensed and insured solar installer with over 20 years of experience, Solar First is dedicated to helping nonprofits maximize these solar incentives. We specialize in solar installation, battery storage, and efficiency upgrades, delivering custom solutions designed to reduce costs and build sustainability. Located in Southwest Florida, we work with a variety of clients, from nonprofits to businesses and homeowners, to ensure energy resilience and educate on solar’s long-term financial benefits. If your organization is ready to explore solar energy, contact Solar First to schedule a consultation. We’re here to help you navigate solar tax credits and direct pay options so your nonprofit can thrive with sustainable, resilient energy solutions.