Funding Opportunities
Current financial incentives to go solar are phenomenal, and are driving installations all over the commercial and residential spaces. Unfortunately non-profits are not eligible for these incentives, and while you can purchase a system outright, you will be leaving tax money on the table. However, there are a few ways to secure funding to mitigate your costs and allow others entities to take advantage of those lost incentives.
Power Purchase Agreement (PPA)
Treated as an investment vehicle, a PPA allows an investor to purchase the system, realize the tax credits and other incentives, and then bill your NPO for the power generated. The billing rate is typically lower than your NPO’s current utility payments, sometimes as much as 50% lower! The investor continues to collect payments for the expected 25-year life of the system. Due to the generous benefits, investors are actively looking for PPAs right now.
There are also Philanthropic PPAs, the main goal of which is to eventually transfer ownership from the PPA to your NPO as soon as possible.With current incentives and energy rates, this can be as little as 10 years, and results in the NPO owning the solar system without any additional operating expenses.
Lease
It is possible to lease a solar power system, entitling the lessor to take advantage of the tax credits. They can then share those benefits by lowering your set monthly lease payment.
Benefactor
Approach donors who already support your mission, and point out that they can have their donation back in 6-10 years by utilizing commercial tax incentives. This makes it an investment and a PPA on their end.
Grants
Grants to help non-profits go solar can be found, though their conditions vary greatly from one to the next. The Foundation Directory is a great place to start.
Coal2sol
AES Solar is partnering with Coal2Sol, a program to help non-profits go solar. Fill out this form, and we will be in touch with you shortly to discuss funding opportunities.