Mission Energy News: September 2024
In this issue of Mission Energy News:
The Inflation Reduction Act: A Game-Changer for Nonprofits on the Path to Sustainability
As we mark the second anniversary of the Inflation Reduction Act (IRA), nonprofit organizations across the nation are beginning to unlock unprecedented opportunities in clean energy. This landmark legislation was signed into law on August 16, 2022, and it represents one of the most transformative efforts in U.S. history to tackle climate change, promote energy independence and build a resilient, green economy. For nonprofits, the IRA offers a unique chance to reduce their carbon footprints, enhance energy resilience and redirect savings back into their missions.
How the IRA Advances Clean Energy
The IRA’s impact on clean energy is extraordinary. One of its key achievements is expanding the Federal Investment Tax Credit (ITC) – 30% – for renewable energy projects. Eligible projects include those that begin construction before 2033 and are related to renewable energy technologies like solar, battery storage, energy-efficient equipment, and electric vehicles. Additionally, the IRA introduces provisions to help low-income and disadvantaged communities benefit from this clean energy transition. Grants, rebates, and other financial incentives are available to promote clean energy deployment in these areas, further increasing environmental equity.
The clean energy sector is also expected to experience significant job growth due to the IRA, with hundreds of thousands of new jobs being created across manufacturing, installation, and other areas within the industry.
· According to Climate Power, the IRA has helped create more than 334,500 new jobs and $372 billion in new investments.
· 290 new clean-energy projects have been started in low-income communities, investing $114 billion into the local economies and creating 134,385 jobs
How the IRA Benefits Nonprofit Organizations
For many nonprofits, sustainability, mission alignment and cost-savings are key priorities when considering a solar program. Historically, tax-exempt organizations could not take advantage of the ITC, creating a significant barrier to pursuing clean energy projects. The IRA changes that by allowing nonprofits to monetize the ITC, effectively reducing the cost of renewable energy projects by 30% or more.
One of the most groundbreaking aspects of the IRA for nonprofits is introducing the Elective Pay option, commonly referred to as “Direct Pay.” This provision allows nonprofits to receive a direct payment from the IRS for the value of their tax credit after filing the required forms within the tax year that the credit is earned (the tax year the solar system is commissioned, for example). This Direct Pay option enables nonprofits to redirect the savings from clean energy projects back into their core missions and services.
The IRA offers additional funding to nonprofits focused on disaster recovery, community resilience, or climate adaptation to strengthen communities against climate impacts. Grants and incentives can be used for projects that provide backup power during emergencies or mitigate the effects of extreme weather on vulnerable populations.
Many mission-driven organizations that serve poverty-stricken or historically disadvantaged communities can benefit from the IRA’s bonus ITC credits. These credits are available for projects in low-income or low-energy communities, aligning clean energy investments with broader economic and social justice goals.
Taking the Next Step: Leveraging IRA Opportunities
By tapping into the IRA’s Direct Pay incentives, nonprofits can further achieve their sustainability goals and strengthen their communities and missions.
If your organization is considering a renewable energy project, now is the perfect time to explore the opportunities the IRA provides. Contact us to schedule a meeting and learn how we can support your journey toward a greener, more resilient future.
Catholic Energies Updates
Mission Energy is proud to serve Catholic dioceses, churches, schools, and organizations across the United States through the Catholic Energies Program.
The Catholic Diocese of Orange County, California (RCBO) has partnered with Mission Energy to develop a simple-to-understand solar policy for all of its parish properties, creating an exemplary model for supporting solar development across the Diocese portfolio. The policy standardizes the solar project approval process for parish properties and allows Mission Energy to quickly make a full assessment with recommendations.
The first three project sites are:
St. Junipero Serra School, Santa Margarita
Rooftop and car canopy solar arrays
LED retrofit
St. Joachim Church, Costa Mesa
Two rooftop solar arrays
Shifts the school’s utility tariff to lower demand charges and save money
Our Lady Queen of Angels Church, Newport Beach
Rooftop and car canopy solar arrays
Electric vehicle chargers
St. Junipero Serra School
St. Joachim Church
SSM Health - St. Anthony Hospital
SSM Health is adding to its growing portfolio of on-site solar power installed by Mission Energy:
Sun Prairie Outpatient Center, Sun Prairie, Wisconsin
Car canopy solar arrays in parking lots
Planned as part of new construction, expediting the solar development
St. Anthony Hospital, Shawnee, Oklahoma
Ground-mounted solar array
Will be the state’s third solar installation in OG&E service area.
The USA East Province of the Society of Jesus (Jesuits) has partnered with
Mission Energy to develop on-site solar capabilities for two of its Maryland properties:
Loyola on the Potomac Retreat Center, Faulkner
Ground-mounted solar array
Colombiere Jesuit Community Residence, Baltimore
Rooftop solar array
Third-party Power Purchase Agreement
Mission Energy is proud to serve as Program Manager of the Catholic Energies Program.
As a program of Catholic Climate Covenant, Catholic Energies provides trusted project development and management services designed specifically for Catholic organizations. Our team brings resources Catholic organizations often lack to advance projects that will reduce the financial burden of high and uncertain energy costs.
Helping Nonprofits Go Solar for Maximum Savings and Sustainability
Featured Impact Story: Catholic Diocese of Richmond
Mission Energy has partnered with the Catholic Diocese of Richmond, Virginia, to help parishes and schools interested in on-site solar generation. Together, we have completed 10 solar projects across the Diocese, including the Pastoral Center. Nine locations installed solar systems through Power Purchase Agreements (PPAs) and achieved substantial energy savings. One property, located in a utility area that doesn't allow PPAs, chose to own its solar system outright using a capital lease.
Driving Results: First-Year Savings and Future Benefits
Mission Energy recently conducted a Solar Savings Analysis for each property, and the results speak for themselves. The properties reduced their dependence on the local utility company and benefited differently based on solar system size, energy consumption, utility rates and energy efficiency.
On average, each saved nearly $10,000 in operating costs during their first year.
Utility rates in Virginia continue to climb, and projections show they will keep rising. Dominion Energy, for example, expects the power supply needs to nearly double in the next 15 years. The Commonwealth of Virginia Energy Plan also confirms that Virginia's energy prices have increased faster than those of competitor states over the past 15 years.
In contrast, the Diocese’s solar energy rates under PPAs remain stable, with only a small, pre-set annual increase. This protects each location from fluctuating utility rates, allowing parishes to save more as their solar energy use offsets rising utility prices.
Empowering Nonprofits with the Inflation Reduction Act
The Inflation Reduction Act (IRA) makes onsite solar generation more financially accessible for nonprofit organizations. Thanks to its clean energy provisions, nonprofits can now recoup 30% or more of project costs as a Direct Pay rebate. This opens up new opportunities for properties in the Diocese, whether they choose to purchase a solar system outright or enter into a Power Purchase Agreement.
Images below are from some of our solar projects with Diocese of Richmond parish and school locations
Meet the Mission Energy Team: Jamal Durrant
Behind every successful project Mission Energy develops for nonprofit clients is a team of dedicated professionals.
Meet Jamal Anatoli Durrant, Project Manager
Jamal has more than a decade of experience in the solar industry, starting as an installer and working his way up to a project management role. He has successfully led residential, commercial and federal projects, including utility-scale solar installations. In his role, Jamal works with stakeholders, procurement and contractors to make sure budgets and timelines are adhered to, all while delivering stellar client support. Originally from St. Vincent and the Grenadines, Jamal grew up in New York, then moved to the Washington DC area where he met his wife, and now resides in Florida with his family.
Clean Energy Legislation and Industry News
Some recent headlines in clean energy:
Texas improving electricity grid; diversifying energy sources
The Electric Reliability Council of Texas (ERCOT) is a standalone state-wide power grid supplying power to the majority of Texas. But it is not tied to other power networks in the United States that could supply electricity in the case of a grid outage. This leaves Texans in the dark – often during extreme weather events. But the Texas legislature is investigating diversifying energy sources, including solar, to support the energy grid.
Read more about the proposal shaping Texas energy policy.
State of New York funds statewide battery storage infrastructure
The State of New York is going all in on solar and battery storage. Batteries allow organizations and individuals to capture and store energy generated for later use, which is vital to improving utility grid reliability and reducing costs in the long term.
According to NYSERDA, the infrastructure supports community, residential and commercial energy storage projects, focusing on reducing fossil fuel use and aiding disadvantaged communities. The initiative is expected to cut future statewide electricity costs by $2 billion and improve public health by reducing emissions from fossil fuels.
Read more about the new policy.
US solar module manufacturing capacity grows by 11 GW in Q1 2024
Commercial solar showed 23% growth in 2023 and is expected to grow by another 14% in 2024.
Texas Grid Faces Biggest Test of Summer with Extreme Heat
So far this summer, the grid has been operating smoothly. Significantly higher solar polar has met afternoon peaks while batteries have kicked in at sunset.
In 2020 the University of Pittsburgh embarked on a journey to increase its sustainability, working to install the largest solar project in western Pennsylvania. This case study reveals how the project came to life and the benefits it brings to the University.
More Areas Qualify as Energy Communities
The IRS added more U.S. counties to the list of areas where renewable energy projects could potentially qualify for a 10% energy community tax credit.
Mission Energy serves nonprofits with clean energy solutions that advance their missions.
Our turnkey development services allow nonprofit leaders to focus on what they do best – carrying out their mission – while we provide the expertise and resources to develop customized solutions for their unique needs. With a commitment to empower any nonprofit to implement clean energy solutions, Mission Energy has partnered with clients across the United States and completed more than 40 projects totaling 14MW with another 12MW under development.
Interested in learning how solar, storage, and energy efficiency can benefit your organization?
Reach out for a consultation with our team to discuss your programs, facilities and property, and learn about your energy goals and limitations. We want to understand the services you’re seeking, your motivations, priorities, and timelines. Our consultation and initial analysis is at no charge to you.