The term “tax credit” isn’t quite the right term.  In 2022, Congress approved a direct pay reimbursement that helps defray the costs of renewable energy infrastructure (including solar panels) for non-profits, including churches. This Direct Pay Reimbursement provides for a basic reimbursement of 30 percent of total project costs for qualifying projects.

This benefit sunsets on July 1, 2026, so we need to get the project underway before then. We will not receive this direct payment until a year after the project is completed. 

Some additional background: For more than two decades, commercial properties have received federal tax breaks for installing renewable energy, a provision of the 2005 Energy Policy Act, which created the Investment Tax Credit (ITC) for renewable energy infrastructure. In 2022, Congress voted to extend a similar benefit to non-profits. Non-profits don’t pay taxes, so the reimbursement is simply a payment from the IRS.

The total project cost is ~$246,000.  This includes Energility (consulting firm) and Gold Path Solar (solar array installer).  The solar array installation portion of the total cost is $236,219.  The payment schedule and amounts are:

Downpayment (10%):  $23,621.90 due in June

Phase 1 (40%): $94,487.60 due in or around August/September .

Phase 2 (40%):  $94,487.60 due in or around October

Final (10%): $23,621.90 due upon project completion (December time frame)

We have received sufficient donations already to cover the downpayment.  The diocesan grant of $50,000 will be used to cover approximately 50% of the Phase 1 costs.  The federal Direct Pay Reimbursement for solar installations would be about 30% of the project (~$71,000).  This amount will not be received by the church until mid-to-late 2027, however.

The remainder will be covered by fundraising and/or a loan, to be paid off by energy savings.  The more we fundraise, the less we have to borrow, and the quicker the solar will pay for itself.

Yes.  All forms in which you typically would give to St Pats can be used for the Solar project.  The key is simply to designate the donation as “for solar”.  There are many tax-advantaged ways to give.  Consult with your financial advisor or CPA for more details.

The St. Patrick’s rooftop solar project pays for itself in ~11 years through the savings we will receive by producing our own energy from the sun. This timeline is conservative and is based on no additional donations, but also no financing interest (via bank loan). The more donations we receive, the more quickly we pay off the loan and the sooner we will reap the full benefits of our home-grown energy source. Fewer donations mean a longer financing schedule and more interest payments to the banks.

We are in conversations with three different banks regarding loans.  We are exploring traditional loans (full amount given up-front), lines of credit, and project loans (loan principal increases as project phases are paid).  Interest rates for each, thus far, appear to be similar.  We won’t know which is the best option for us until we have received final information from the banks and can assess the advantages and disadvantages of what we are offered.

The panels are covered both by a manufacturer's warranty and under our standing building insurance policy.

It should not, because the timeline for the elevator is still emerging.  We recently received an anonymous donation for the entire cost of an elevator.  Consequently, we have contracted with Mode Architects—an outfit Rick Sicker has worked with on many occasions and trusts—to begin the design process.  After design, we will solicit bids from contractors, and there will still be engineering, permitting, and other preliminary steps before construction can begin.  Therefore, while the solar array installation might overlap a little with elevator construction, more than likely, the elevator construction will be after the solar array installation.