Solar for Tax-Exempt Organizations
Power Your Nonprofit, School, or Municipality With Solar
Whether you’re managing a city budget, a school district, or a local nonprofit, finding ways to offset rising operating costs can be a challenge. That’s why more tax-exempt organizations are turning to solar power.
Solar reduces your ongoing energy costs while promoting environmental sustainability and community leadership. Start your project in 2026 to take advantage of the federal direct pay incentive, which could reduce your project cost by 30%.
If purchasing solar is not currently within your budget, you can still go green through a Power Purchase Agreement (PPA) at no upfront cost.
See how 1 Source Solar can help you create a more sustainable energy plan.
How Solar Power Benefits Tax-Exempt Organizations:
Key Deadlines for Cities, Schools & Nonprofits
The federal solar direct pay benefit allows tax-exempt organizations to recoup up to 30% of the cost for a newly installed solar panel system. The window is rapidly closing to receive this benefit. To ensure you qualify, here are the critical deadlines for starting your solar project and placing it in service.
- July 4, 2026: Solar projects that begin construction on or before this date have a much more relaxed timeline than those that begin after it. Projects won’t need to be placed in service until Dec. 31, 2030.
- Dec. 31, 2027: If your project begins construction after July 4, it must be placed in service by this date to qualify for the 30% benefit.
Learn more about important deadlines for the federal solar direct payment program.
Power Purchase Agreements for Tax-Exempt Organizations
Many nonprofits, municipalities, school districts, and other organizations are using power purchase agreements to fund their solar projects. A power purchase agreement is an agreement between a solar user and a third party, often a developer. The developer constructs and owns the solar system, selling the energy back to the solar user. This eliminates the upfront cost for solar users.
1 Source Solar can help arrange a third party to own the solar system and sell the electricity to you. The price will often be at a discounted rate compared to utility power. This allows you to lock in predictable energy costs and meet your sustainability goals today, with the option to purchase the system in the future.
Solar Power for Nonprofits
Nonprofits like churches, charities, and community organizations are no stranger to navigating tight budgets. That’s where solar energy is a solution.
Maintain long-term financial sustainability by lowering your overhead energy costs and leading your community. Learn more about why now is the best time for nonprofits to go solar.
How We’ve Helped Nonprofits Save:
United Church of Christ in Urbandale, Iowa
- 58 rooftop solar modules
- 23.2 kW system size
- Qualified for the 30% federal direct pay
Solar Power for School Districts, Colleges & Universities
Solar energy holds powerful potential for local school districts, colleges, and other educational groups. Along with offsetting rising operational costs, solar panels offer teachable opportunities for students in the areas of renewable energy and STEM.
How We’ve Helped School Districts Save:
- Power purchase agreement (PPA)
- System size: 2.55 MW (5,800 solar modules)
- Purchase by college in year six at 40% discount
- School to receive 100% savings from the solar production after purchase
Solar Power for Cities & Counties
From partnerships with small municipal utilities to our nearly 1,800-panel project with the City of Des Moines, Iowa, we’re helping local governments take control of their energy costs.
How We’ve Helped Cities Save:
City of Des Moines, Iowa
The City of Des Moines repurposed a retired landfill by installing a ground solar array in April 2024. The ballasted ground array was designed to not disturb the landfill’s soil cap. The project received a 30% federal solar direct payment for non-taxable entities and may qualify for an additional 10% community bonus direct payment.
- 99 solar panels
- 30% federal solar direct pay for non-taxable entities
- System size: 38.6 kW
How 1 Source Solar Serves Cities, Counties, Nonprofits & Schools
We know how important your organization’s limited financial resources are. That’s why our project team will provide an initial cost analysis to help you make wise budget decisions from the outset. We then manage the process from start to finish.
Our team is your engineer, construction manager, and warranty provider throughout your project. Here are some of the services we will provide you during the process.
Utility Cost Reduction Analysis
Before we start the project, we’ll look at your energy usage and create a preliminary design to show how much solar could help you save. This will help you keep your stakeholders informed and make the best decision for your energy needs and for your budget.
Flexible Financing Options
If you need financing for your project, we work with a range of financing partners and can help you choose the best option for your goals.
Expert Solar Engineering
The 1 Source Solar team has some of the most knowledgeable solar engineers in the business. Our in-house team will handpick only the best Tier 1 solar products for your project as we design your array. We’ll also handle all of the product procurement and construction administration.
Safe, Secure Installation
As a full-service engineering, procurement, and construction (EPC) firm, we manage the entire process from start to finish. We complete our work with your day-to-day operations in mind, working hand-in-hand with you to keep disruptions to a minimum.
Long-Term Monitoring & Maintenance
We stand by our work and back all of our workmanship with a five-year warranty. We also provide annual usage and maintenance contracts to support you through your system’s lifespan.
Use These Government Incentives to Power Your Project’s Savings
Even though local governments and nonprofits don’t pay taxes, federal and state incentives are still available to drastically reduce the cost of your project. Talk to us about available incentives, power purchase agreements, and other options for lowering your solar installation costs.