Solar for Nonprofits: Empowering Social Change with Sustainable Energy

In the realm of renewable energy, solar power has emerged as a beacon of hope for individuals and businesses alike striving for sustainability. From homeowners to corporations like Google, the adoption of solar energy has been steadily rising, fueled by the desire to reduce costs and promote environmental responsibility. Now, nonprofit organizations are also joining the solar revolution, leveraging specialized financing options to harness the power of the sun and advance their missions. Let’s explore the benefits of solar for nonprofits and the innovative financing solutions making it all possible.

Benefits of Solar for Nonprofits

1. Financial Benefits: By going solar, nonprofits can significantly decrease their operational costs, freeing up funds to dedicate to their core objectives. Solar panels generate free electricity, resulting in substantial savings over their 30+ year lifespan. Moreover, solar insulates organizations from volatile electricity rates, providing a low fixed-price alternative that makes long-term budgeting more manageable.

2. Social & Economic Benefits: The adoption of solar energy contributes to the growth of the local economy by creating jobs and reducing the country's reliance on foreign energy sources. The solar industry employs a significant number of people in the U.S., surpassing employment figures in the oil, gas, and coal sectors combined.

3. Environmental Benefits: Many nonprofits are committed to promoting clean, green energy solutions, and solar power aligns perfectly with these goals. Solar installations help reduce an organization's carbon footprint by eliminating the emissions associated with traditional electricity generation from fossil fuels.

Solar Financing for Nonprofits: Overcoming Challenges

While the benefits of solar energy are clear, many nonprofits face challenges when it comes to financing solar installations. Unlike residential and commercial properties, nonprofits cannot take advantage of tax incentives like the federal solar tax credit (ITC) due to their tax-exempt status. This hurdle often extends the payback period for owning a solar system and reduces overall savings.

To overcome these challenges, many nonprofits opt for solar financing solutions such as leases or power purchase agreements (PPAs). These arrangements involve a third-party financier owning the system and covering installation and maintenance costs in exchange for regular payments. While solar leases and PPAs are common, innovative financing models tailored specifically for nonprofits have also emerged.

CollectiveSun Solar Financing

CollectiveSun offers a unique approach to solar financing through prepaid PPAs. Nonprofits can pay for the entire term of the PPA upfront, leveraging the 30% solar tax credit to receive savings. CollectiveSun passes on half of these savings to the nonprofit, making solar more accessible. After six years, ownership of the system transfers to the nonprofit, providing free access to solar electricity.

RE-volv Solar Seed Fund

RE-volv's Solar Seed Fund model allows nonprofits to save on electricity bills through a solar PPA or lease. As nonprofits make payments, funds are reinvested into the Solar Seed Fund, enabling the financing of additional solar projects for other nonprofits. It's a pay-it-forward model that fosters community-driven sustainability initiatives.

How to Get Started

If you're a nonprofit interested in going solar, consider signing up on the EnergySage Marketplace to receive competitive bids for a solar installation. Collect past electric bills and electricity usage history to help size your system accurately. When exploring financing options, consult with potential installers about available lenders and financing solutions. Reach out to organizations like CollectiveSun and RE-volv dedicated to helping nonprofits finance their solar projects.

By embracing solar energy, nonprofits can not only reduce costs but also amplify their impact on the environment and communities they serve. With innovative financing solutions and a commitment to sustainability, nonprofits can lead the charge towards a brighter, cleaner future powered by the sun.