Updated Solar Incentives for Government and Nonprofit Organizations: How to Lower Energy Costs and Strengthen Your Mission

Nonprofit and Government organizations across Georgia – including schools, government buildings, churches, community centers, and charitable institutions – are facing increasing pressure to reduce operating expenses, modernize facilities, and demonstrate environmental responsibility to donors and community partners.

Below is a clear, up-to-date guide to help nonprofits understand what support is available and how to use it to cut costs, stabilize budgets, and reinvest more resources back into their mission.

1. Direct Pay (Elective Pay): Claim the Federal Solar Credit as a Cash Rebate

Traditionally, only tax-paying businesses could claim the Investment Tax Credit (ITC) for investing in on-site solar power. But under the Inflation Reduction Act, nonprofits can now receive the value of the ITC as a direct cash payment from the IRS.

What this means for nonprofits:

• You can receive 30% of total solar project costs back as a federal rebate
   
• You do not need tax liability to qualify
   
• Applies to solar, battery storage, carport solar, and more
   
• The Direct Pay option is currently set to expire after 2027, consistent with other commercial clean energy incentives

This makes clean energy accessible to organizations that don’t generate taxable income, and greatly lowers financial barriers to solar and battery projects.

👉 IRS Elective Pay guidance:
https://www.irs.gov/credits-deductions/elective-pay-and-transferability

2. Additional ITC Adders That Nonprofits May Qualify For

Some organizations may be eligible for additional incentives on top of the 30% base credit:

Domestic Content Adder (up to +10%)

For projects using qualifying U.S.-manufactured equipment.

Energy Community Adder (up to +10%)

For facilities located in designated economic transition zones.

Low-Income Community Bonus Credits are highly applicable to nonprofits such as affordable housing providers, community service centers, tribal organizations, and projects installed in low-income communities.

When eligible, these adders can boost the effective credit value significantly – in some cases bringing total support to 40–60% of project costs.

Beyond Incentives – Long-Term Value for Nonprofits

Solar systems offer nonprofits more than just federal rebates:

• Lower, more predictable energy costs
   
• Reduced exposure to rising utility rates
   
• Improved facility resilience when paired with battery storage
   
• Enhanced appeal to donors, grantors, and community stakeholders via sustainability credentials
   
• Savings that go directly toward programs and mission-driven work
   

Because nonprofits often operate on tight budgets or fixed funding, these long-term operational savings and stability make solar an especially attractive option.

Why Acting Soon Matters

Federal incentives and grant-support programs are available now — but many are competitive, and project timelines for permitting, equipment supply, and installation continue to grow. Delays can increase costs and reduce the value of incentives.

By beginning your solar project planning now, your nonprofit can start reducing energy overhead quickly – reinvesting savings into your mission instead of spending them on utility bills.

Why Nonprofits Choose AES

AES has deep experience supporting nonprofits, churches, schools, and community organizations across Georgia with reliable solar consultation, engineering, installation, and long-term service.

What Sets AES Apart

• Proven experience with nonprofit, faith-based, municipal, and educational facilities
   
• 850+ systems installed statewide since 2007
   
• NABCEP-certified engineering and installation team
   
• Full in-house design, installation, troubleshooting, and maintenance
   
• Athens-based, serving all of Georgia with a satellite office in Savannah
   
• 25-year workmanship and production guarantees
   
• Custom solar and battery solutions built around nonprofit budgets and energy goals
   
• Transparent financial modeling that shows true cash-flow and long-term impact
   

AES helps nonprofits understand not just the incentives available, but what solar can realistically deliver in long-term financial and operational value.

Get a No-Obligation Solar Assessment for Your Nonprofit

AES can evaluate your facility’s solar potential, applicable incentives (Direct Pay, bonus adders, REAP), expected savings, battery options, and overall feasibility.

We help nonprofits make informed, practical decisions that strengthen their organization for years to come.