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August 22, 2024How Non-Profit Organizations Can Benefit from Commercial Solar Solutions
How Non-Profit Organizations Can Benefit from Commercial Solar Solutions
The demand for sustainable energy solutions is surging, driven by escalating electricity rates and a global push towards environmental responsibility. While for-profit businesses have long reaped the rewards of solar energy, recent changes to the Solar Investment Tax Credit (ITC) have opened new doors for non-profit organizations. As a leading renewable energy EPC,
Revel Energy has extensive experience in providing solar and energy storage solutions to California businesses, including non-profits like Big Brothers Big Sisters of Orange County.
The Rising Appeal of Solar Energy in California
California businesses, both for-profit and non-profit, are increasingly seeking sustainable solutions to combat ever-increasing electricity rates. With utility costs consistently on the rise, commercial solar presents a proven investment to drastically reduce current and future electricity bills. This economic incentive, coupled with environmental benefits, makes solar energy an attractive proposition.
How The Solar Investment Tax Credit is Claimed by Non-Profits
Traditionally, non-profit organizations could not directly benefit from the Solar ITC due to their tax-exempt status. However, recent changes have revolutionized the landscape. Non-profits can now leverage the ITC through a “direct pay” provision, allowing them to receive a refund from the IRS equivalent to the tax credit value for solar projects placed in service after 2022.
This change is monumental for non-profits, enabling them to significantly lower the upfront costs of solar installations. To take advantage of this benefit, non-profits must pre-register with the IRS. The refund is calculated based on the project cost minus any tax-exempt funds received specifically for the project.
Additionally, non-profits have the option to transfer their tax credits to unrelated eligible taxpayers. This flexibility in financing opens new avenues for funding solar projects, making it easier for non-profits to go green and save on energy costs.
Case Study: Big Brothers Big Sisters of Orange County
A prime example of a non-profit harnessing the benefits of commercial solar is Big Brothers Big Sisters of Orange County. Partnering with Revel Energy, they successfully implemented a solar energy solution tailored to their needs. The project not only reduced their rising electricity bills but also underscored their commitment to sustainability.
Why Commercial Solar Makes Sense for Non-Profits
Cost Savings: Solar energy can drastically cut down electricity expenses, freeing up funds for core non-profit activities and programs.
Sustainability: Embracing solar energy aligns with the global push towards environmental sustainability, enhancing the organization’s reputation and appeal to eco-conscious donors and stakeholders.
Financial Incentives: The updated ITC provisions and potential for energy savings make solar a financially sound investment for non-profits.
Energy Independence: Solar energy systems can provide a level of energy independence, protecting non-profits from future utility rate hikes.
The Future is Bright for Non-Profits and Solar Energy
With the barriers to solar investment significantly reduced, non-profit organizations are well-positioned to take advantage of the myriad benefits offered by commercial solar solutions. At Revel Energy, we are committed to helping non-profits navigate this new landscape, providing expert guidance and tailored solar and energy storage solutions that maximize both financial and environmental benefits.
Getting Started with Solar for Your Non-Profit
For non-profit organizations looking to explore solar energy solutions, the journey begins with a thorough assessment of energy needs and financial goals. Partnering with an experienced EPC like Revel Energy ensures a seamless transition to solar, from initial consultation and design to installation and maintenance.
Our team understands the unique challenges and opportunities non-profits face. We are dedicated to providing customized solar solutions that not only meet energy needs but also align with organizational values and missions.
Learn If Your Non-Profit Organization Can Benefit From Solar & Energy Storage
The recent changes to the Solar ITC have leveled the playing field, allowing non-profit organizations to enjoy the same financial and environmental benefits that have driven the adoption of commercial solar among for-profit businesses. As electricity rates continue to climb, the case for solar and energy storage become ever more compelling.
Non-profits can now embrace solar energy with confidence, knowing that it is a wise investment that will yield long-term savings and sustainability. By partnering with Revel Energy, non-profits can embark on this transformative journey, securing a brighter, greener future.
For more information on how your non-profit can benefit from commercial solar solutions, contact us today. Let’s work together to power your mission with clean, sustainable energy.
Frequently Asked Questions
Nonprofits can significantly lower their costs of electricity by installing solar panels, which reduce reliance on natural gas-based electricity and provide long-term electricity savings. Additionally, non-profits can leverage bonus tax credits, federal tax incentives, and grants from credit unions and government organizations to lower upfront costs and increase their return on investment.
Nonprofits can access various financial incentives, including the solar tax credit, direct payment benefit, and bonus tax incentives. The low-income community bonus credit provides an additional 10-percentage point bonus or 20-percentage point bonus for qualifying projects in low-income residential buildings and community-powered solutions.
By adopting solar energy projects, nonprofits contribute to climate solutions and help mitigate climate change impacts. Nonprofits with a strong public image in sustainability attract eco-conscious donors and sponsors while reinforcing environmental policy commitments. Organizations such as community health centers and government buildings can also enhance community impact by reducing operational costs and reinvesting in services.
Nonprofits that install solar arrays paired with battery storage systems can achieve energy independence and maintain operations during power outages. This is especially beneficial for organizations that require continuous power, such as community health centers and emergency response facilities. Battery storage projects also enhance clean energy capacity and ensure nonprofits have reliable backup power.
The entire process begins with a solar analysis to determine energy needs and available funding options. From there, nonprofits can apply for financial assistance, explore Renewable Energy Credits, and work with a solar installer to design and implement a customized system. Federal government incentives and domestic manufacturing requirements can also play a role in securing affordable and sustainable solutions.
Transitioning to renewable energy sources through solar panel installation reduces dependency on costly foreign energy and cost of fuel. This shift enables nonprofits to secure predictable energy costs, making clean energy affordability more accessible while supporting a broader clean energy transition.
Yes, nonprofits can explore a database of resources for solar financing for nonprofits, including grants, loans, and power purchase agreements. These funding sources, combined with federal incentives, community solar options, and domestic content requirements, can help nonprofits maximize the financial benefits of renewable energy.
Nonprofits can further their commitment to sustainability by replacing fossil-fuel-burning natural gas water heaters with ultra-high-efficiency heat pump water heaters, reducing emissions and improving clean heating solutions. These upgrades align with clean energy projects and contribute to long-term environmental impact.
Many business owners and government organizations support nonprofit solar initiatives by providing funding assistance, tax incentives, and infrastructure support. Federal tax credits and tax liability reductions make it easier for nonprofits to invest in renewable energy projects that align with their mission and sustainability objectives.
The timeline for return on investment varies based on the upfront investment, financial incentives, and electricity bill savings achieved. However, most nonprofits experience a reduction in the cost of energy within a few years, with savings continuing for electricity for decades.
Commercial grade rooftop solar is ideal for: manufacturing, warehousing, logistics, industrial, retail, hospitality buildings and more with over 10,000 sq. ft. rooftops.
CARPORT SOLAR
Free standing carport solar generates added solar power for properties with limited rooftop space. Added benefits include shading and protection for employees vehicles.
Crucial for reducing peak demand charges. Automated to supply electricity when your panels won’t. Energy storage is ideal for businesses that incur significant peak charges.
As the popularity of electric vehicles increase, so does the demand for on-site charging. This sustainable amenity has become a parking lot fixture for competitive employers.
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Client Testimonial: Kelemen Company
Corporate Business Park in Irvine, CA has created significant electricity cost savings through commercial solar installed across the 5-building business park.
Client Testimonial: Tice Gardner & Fujimoto LLP
See how this CPA firm saved on electricity and gained valuable tax credits through commercial solar that they used to keep cash in the businesses.
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