Nonprofit Energy Savings from the Inflation Reduct Act (IRA)

New Provisions in IRA

• Nonprofits* are now eligible for Direct Pay tax credits for Section 48E – Clean Electricity Investment Tax Credit
• 48E Expanded to include Energy Storage
• Credits are technology neutral, but the practical options for most facilities are Solar PV Panels and Batteries.
• Credit covers 30% of installation costs
• Treasury will release guidance later this year on how tax exempt organizations can apply via Section 6417
• Organizations should expect to cover full cost upfront and receive credit within 1-2 years

*Includes 501(c)(3)’s, houses of worship, tribes, and state and local governments

Solar Financials – Large Residential or Small Commercial System

A Gift That Keeps on Giving!

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• After taxes and credits, and with net metering, solar panels are a more stable and higher return investment than the stock market.

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• With Indiana’s carbon-heavy grid, you avoid a lot of pollution - ~77 tons of CO₂

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_{This estimate only assumes the 30% base tax credit.}

Bonus Credits

Not Guaranteed!

• Dept. of Energy data says Crawfordsville should qualify as energy community, but cautions not to use its data for tax advice.
• Domestic Content adder depends on your developer/installer. I expect many won’t be able to qualify for now.
• “Low income community” depends on the poverty rate and income level of the census tract.
• More information here: Clean Energy Group

Potential Installers

• Rectify Solar – RectifySolar.Com – 317-643-1002
• Green Alternatives Inc. – solargai.com - 765-480-2423
• GRNE Solar – grnesolar.com/Indiana - 317-662-0013

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• Additional reputable installers can be found on this list - https://www.sirensolar.org/contractors/

Other considerations for going solar��

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What is your usage, and what is your net metering limit?

• CELP’s net metering limit is 10kW(AC). This will cover 13,000-14,000 kWh’s of annual usage
• If you don’t have net metering, you may want a smaller system to get more self-consumption and a better return

Is your roof suitable?

• Needs enough flat or south-facing space for your panels. East or west space can make sense

Would you prefer Ground Mount?

• Ground may cost slightly more upfront, and requires some open shade free space, but avoids any roof-related limitations
• Roof needs enough open, shade-free flat or south-facing space (east and west can work some times).

Are you going to be replacing your roof soon?

• Solar panels can be temporarily taken down to replace a roof, but it may make sense to wait if you are replacing within a few years

Do you have a warranty on the roof?

• Coordinate with your roofer to make sure you won’t void it

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Check with your insurance, as well. Your policy may need an update (you are adding valuable equipment, after all).

Other Programs – EV Chargers and upcoming “Green Bank”��

Other Programs – Renew America’s Nonprofits��

• Department of Energy Link
• $50M Competitive Grant Program for 501(c)(3)’s from the Bipartisan Infrastructure Law
• Aimed at organizations with demonstrated financial need and the potential for large energy savings

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For Homeowners (not Nonprofits)

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• Tax Credits and Rebates available for homeowners for electrification and efficiency
• RewiringAmerica.org - IRA Savings Calculator
• Also watch dsireusa.org – Database of State Incentives for Renewables & Efficiency
• Rebates for Low/Middle Income households include apply to most of the same things the tax credits apply to, plus induction ranges and heat pump clothes dryers

See fueleconomy.gov for list of eligible vehicles

Personal Experience with Home Energy Efficiency

• ~100-year-old house
• Reduced final energy consumption 63%, and methane gas consumption 84% in 5 years
• Despite adding a baby and shifting to a home office in 2020
• Savings are ~$500/year at today’s energy prices vs. 2018 consumption baseline.

• Dec 2018 – New High Efficiency Furnace.
• Spring 2019 – Replaced 3 Leakiest Windows. Placed thermal curtains on some others.
• Jan 2020 – Duct Sealing. Attic Insulation.
• Sep 2020 – Heat Pump Water Heater. 1^st Coat of Crawl Space Insulation. Sealed Chimney.
• Feb 2021 – Weather stripped door. Minor caulking and air sealing
• Sep 2021 – Heat Pump
• Jan 2022 – Attic Radiant Barrier. 2^nd coat of crawlspace insulation.
• Feb 2022 – More door and window air sealing
• Feb to Oct 2022 – A long suffering DIY project to insulate our bare rim joists
• May 2022 – Replaced crumbling basement mortar
• Dec 2022 – More aggressive heat pump settings
• Jan 2023 – DIY foam board insulation in remaining bare attic space
• Feb-Mar 2023 – Further air sealing, using rope caulk this time.

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Sources

• Clean Energy Group: What Nonprofits Need to Know about the Investment Tax Credit. Feb 27, 2023

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• Foley & Leander LLP: The Inflation Reduction Act: Key Provisions Regarding the ITC and PTC, Aug 12, 2022

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• Rewiring America IRA Savings Calculator

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• C40 Cities: Climate Action and the Inflation Reduction Act | A Guide for Local Government Leaders

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• Dan Robinson with Solar United Neighbors

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• Department of Energy – Renew America’s Nonprofits

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• Nicole Kelner’s lovely artwork

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Thank You!

John Smillie

E-mail: john.thomas.smillie@gmail.com

Phone: 309-678-6709

www.citizensclimatelobby.org