Big roof? The federal solar credit is yours too.

Through IRS elective pay ("Direct Pay"), tax-exempt organizations can receive part of a qualifying solar project's cost back as a cash payment. No tax bill required.

Ask about a Direct Pay solar assessment

How Direct Pay works

Step 1

Install a qualifying solar project

Your organization moves forward with a solar project that qualifies under IRS rules.

Step 2

File with the IRS

After the system is placed in service, your organization can register and file the required return.

Step 3

Receive a cash payment

Through IRS elective pay, the IRS can send part of the qualifying cost back — no tax bill required.

Source: IRS – Elective pay and transferability.

Who qualifies

Direct Pay is generally open to tax-exempt organizations such as:

Churches and other houses of worship
Schools and school districts
Nonprofits
Local governments
Tribal governments

Eligibility and deadlines depend on your project. Talk to your tax advisor.

The window

Under current rules, projects starting construction now must be in service by December 31, 2027.

Eligibility and deadlines depend on your project. Talk to your tax advisor.

Design. Permits. Construction. They all take time — and the clock is already running.

Start now. The window won't wait.

We just did this in Carbondale.

SoL Energy recently completed a solar installation for Colorado Rocky Mountain School, a boarding school in Carbondale. A campus is a different job from a house: several roofs, a schedule built around students, and a board that wants to understand the decision before it signs. We design and install for exactly that.

If your church, school or nonprofit has a roof and a mission, we can walk your board or facilities committee through what a Direct Pay project could look like for your organization.

Frequently asked questions

Is Direct Pay upfront money?

No. Direct Pay is generally a payment made after a solar project is placed in service and a return is filed. Eligibility and deadlines depend on your project. Talk to your tax advisor.

Do we need to owe federal income tax to benefit?

No. That is the idea behind IRS elective pay. Tax-exempt organizations may be able to receive a payment even without a tax bill.

How do we know if our roof or building is a fit?

It depends on your roof, your electrical service and how your organization uses energy. Ask for a Direct Pay solar assessment and we can help you find out.

Who files with the IRS?

Your organization files, generally with help from its accountant. We can help supply project documentation for that process. Talk to your tax advisor.

When do we need to start?

Design, permits and construction can all take time, and deadlines can depend on when a project starts. Eligibility and deadlines depend on your project. Talk to your tax advisor.

Ask about a Direct Pay solar assessment

Eligibility and deadlines depend on your project. Talk to your tax advisor.

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