5 Reasons Nonprofits and Religious Organizations Should Go Solar

In a world of rising prices, nonprofit and religious organizations are always looking for ways to reduce their operating expenses without cutting services to their community. Installing solar panels presents a great opportunity to decrease operating costs and your carbon footprint while increasing your community engagement and fundraising potential, all while supporting the local economy.  

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1. Decrease Operating Costs

Electricity is a major operating expense for many organizations and according to the U.S. Energy Information Administration (EIA), electricity prices have increased 2.67% per year in the United States for the past 25 years, while in California electricity prices have increased by 4.1% per year. These fluctuating costs, driven by fuel prices, can be unpredictable and challenging for organizations, especially nonprofits and religious institutions that rely heavily on donations and grants.  

One of the greatest benefits of installing a solar system is the ability to drastically reduce, or even eliminate, your organization’s monthly energy bills. Solar energy offers a stable, long-term solution by locking in fixed energy costs for 25+ years, helping organizations manage budgets more effectively and reduce operating expenses

2. More Money for Your Cause

When you invest in solar energy, you’re not just reducing your operating expenses, you are increasing the money you have available for your organization’s programs and services.  Whether it’s funding a new initiative, expanding existing programs, or increasing outreach, solar savings provide the financial flexibility needed to fuel your mission. Even if your mission isn’t directly related to environmental goals, the less money you spend on energy, the more money your organization can put towards doing good.

3. Reduce Carbon Footprint and Increase Environmental Stewardship

Many nonprofit and religious organizations are committed to sustainability and reducing their environmental impact, and switching to solar energy is a powerful way to achieve these goals. Solar power is a clean, renewable source of energy that generates no carbon emissions, unlike coal or natural gas-based electricity. By installing solar panels, nonprofits can significantly reduce their carbon footprint, decrease reliance on fossil fuels, and demonstrate a tangible commitment to environmental responsibility. This shift not only helps combat climate change but can also enhance your organization's public image, appealing to environmentally conscious donors, volunteers, and the wider community.  

Additionally, your organization may inspire others to adopt solar energy, creating a ripple effect that can further reduce carbon emissions and promote a more sustainable future.

4. Increase Fundraising Potential

Adopting solar energy demonstrates a nonprofit's commitment to sustainability, which can attract environmentally conscious donors and enhance your image, potentially leading to increased fundraising success. By going solar, nonprofits create unique opportunities for members to engage in fundraising, design, and educational efforts related to the installation, which can contribute to long-term electricity bill savings. Solar projects can also boost fundraising by appealing to donors passionate about the environment, and hosting events to raise money for the project can engage the community and attract new supporters. Plus, solar energy comes with a great “hook” – solar energy is an investment that will pay your organization back over the years with free electricity, so you are asking for more now, so you can ask for less later.

Once the system is installed, nonprofits can highlight their commitment to renewable energy in fundraising materials, building trust and credibility with potential donors.  In addition, solar panels serve as a visible symbol of eco-consciousness, drawing positive attention from local media, community blogs, and social media, while potentially attracting more supporters and donations.

5. Support Local Business

Adopting solar energy reduces the reliance on foreign oil and contributes to the local economy by creating jobs for local solar contractors.  

Additional Benefits of Including a Solar Battery  

Including a battery in your solar system adds additional benefits, including the possibility for additional utility cost savings and having a backup energy system.  

By adding battery storage, an organization opens possibilities for demand reduction including peak shaving, where battery power is utilized during your utilities peak price times. In addition, a company may be compensated by a utility or can simply save money for relying on their stored battery power during peak energy demand, rather than drawing from the grid.  

Organizations that need to keep refrigerators, air conditioners, air purifiers, generators, or other devices running during a power outage will find backup battery systems especially important, especially as power outages and wildfires become an increasingly common threat in California.  

How Can Nonprofit and Religious Organizations Pay for Solar Installation?

The Investment Tax Credit, part of the Inflation Reduction Act (IRA), offers a 30% tax credit to organizations installing solar. In addition, organizations can receive up to an additional 30% in tax credits if they qualify for the Domestic Content, Energy Community, and/or Low-Income Adders.  

Most importantly for tax-exempt organizations, these tax credits are now available through the Elective (or “Direct”) Pay option, which allows non-profit and religious organizations to receive cash for their tax credits.  

Given the accelerated rate of change we have seen under the new administration, TENCO SOLAR is encouraging nonprofits to take advantage of the “Safe Harbor” provision that the IRS established in the Investment Tax Credit (ITC) which allows customers to preserve the tax credit of a given year by “beginning construction” on their solar project.  

Nonprofits and religious organizations should consider going solar to reduce their energy expenses, enhance their sustainability efforts, and potentially attract more funding and support.  

Contact TENCO SOLAR today to learn more about how your nonprofit or religious organization could benefit from a solar system!    

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