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Inflation Reduction Act Makes Going Solar Easier

January 27, 2023

The Inflation Reduction Act of 2022 (IRA) has changed the game for nonprofits by creating a direct pay version of the solar Investment Tax Credit (ITC). Now, nonprofits have just as much to gain by going solar as for-profit businesses.

The federal solar tax credit allows for-profit businesses to receive a tax credit worth 30% of their total installation costs when they install solar panels and/or battery storage. The new direct pay option allows not-for-profit organizations to benefit from this incentive even though they do not pay taxes. Non-profits can now receive a direct payment for 30% of their total solar energy system installation costs, making solar installation easier and more affordable. 

Any organization that has tax-exempt status with the federal government is eligible for the nonprofit solar tax credit direct pay option. Some examples are: 

  • Public schools and universities 
  • Government buildings and organizations 
  • Charities and other non-profits 
  • Religious organizations¬†

By going solar, nonprofits can benefit from:

  • Electric Bill Savings
  • Solar Incentives
  • Enhanced Public Image
  • Blackout Protection
  • Reduced Carbon Footprint