Tax credits for homeowners looking to install solar panels have been around for years, but under legislation passed in 2022, churches and other nonprofits could get payments too. While the outlook for renewable energy policy in the United States is unclear under President Donald Trump, experts say solar is still strong.
Jim Rosenberger, the treasurer of the University Mennonite Church in State College, offered a tour recently — including of features that might not typically be the center of attention, including heat pumps.
“That’s the juncture box to connect the solar panels to the grid," Rosenberger said.
As he walked around the church on a cold winter day, the solar panels on the roof were covered in snow. But, Rosenberger said, the snow will melt off soon enough.
“On a sunny day like this, it would be generating if the snow weren't on there," he said. "I can actually go on a website and see what it's producing.”
Rosenberger is a member of the church’s Creation Care Committee. Their focus started small — with more efficient light bulbs and better insulation. Eventually, they looked at the building’s energy usage. And that led them to solar and heat pumps.
“This is the only Earth we have, and we ought to be taking care of it better than we do," Rosenberger said.
The congregation had meetings and discussions, and eventually raised money for the project. They were able to get tax credits by setting up an LLC and grants that covered part of the costs.
After the solar panels, which have been online for about a year and a half, came the heat pumps.
“We haven’t gotten to net zero yet, but we’ll see," Rosenberger said.
One option for someone thinking about going solar is getting help from the nonprofit Solar United Neighbors.
“It's really important to remember that that investment you will recoup within probably a decade, and then everything after that is savings from your electric bills," said Monica Carey, SUN's Pennsylvania program director.
She said one of the most “revolutionary” things that came out of the Inflation Reduction Act of 2022 was the provision that lets nonprofits get a payment for installing solar panels.
“So in this case, you know, your local church or your municipality, other nonprofit organizations, they're actually able to reduce the cost of going solar by 30% right off the bat," she said.
Tax credits had been available to individuals going solar since 2005.
“For a lot of organizations, that is the difference between being able to go solar and kind of wishing you could, it was really a game changer, and we're just now kind of seeing a lot of those projects come to fruition," Carey said.
Since taking office, Trump has been trying to roll back the Inflation Reduction Act. Supporters of the solar credits say they’re law and cannot be undone by executive order.
Still, Carey said, staffing changes in the IRS or Treasury Department could mean the payment process for nonprofits takes longer. And, there is the possibility that Congress could repeal the solar credits in future legislation, which would be binding.
Emily Schapira is president and CEO of the Philadelphia Energy Authority, a quasi-governmental organization whose projects include helping residents get solar rooftops and low-income home repair.
She said there’s uncertainty about where things in the industry are headed with tax credits and subsidies. But, she’s optimistic about the outlook in Pennsylvania.
“Regardless of how you feel about any other part of our energy system, we don't want to turn away economic opportunity," she said. "We don't want to turn away opportunities to create more affordable utility costs for the long term, especially for the most vulnerable folks."
The industry, she said, has taken off in Pennsylvania in recent years. That not only means lower energy bills for some, but new jobs.
“We see with solar that $1 invested in rooftop solar in particular, on site solar in particular, is the best investment that you can make for job creation. It requires local labor, and it's something that cannot be done any other way," Schapira said.
Right now the industry is booming. Nationally, solar made up more than 60% of new electricity-generating capacity added to the U.S. grid through the third quarter in 2024, according to the Solar Energy Industries Association.
Sean Gallagher, the association’s senior vice president of policy, points to a few factors: Better storage, declining prices, and increased manufacturing in the United States.
And, tax incentives for schools, churches and government agencies.
“It makes it much more economic for those kind of organizations to utilize solar and to save money on their bills," Gallagher said.
He said they’re working to shore up support for those tax incentives.
“We see the industry continuing to grow. I think the question really is, how fast it's going to be able to grow, and that will depend on actions that the Congress and the administration take or don't take.”
That growth can be seen in central Pennsylvania. In Centre County, for example, the Recycling and Refuse Authority had solar installed. They plan to apply for the 30% direct pay in the Inflation Reduction Act.
