Nonprofit RE-volv Accelerates Solar Energy Deployment Thanks to Inflation Reduction Act

Solar power generation is surging across the United States. Year after year, solar has routinely outperformed predictions about its deployment, and constituted half of all new energy production in 2023. With clean energy-enabling legislation like the Inflation Reduction Act (IRA) (P.L.117-169) and the Infrastructure Investment and Jobs Act (IIJA) (P.L.117-58), new avenues for solar investment and deployment are cropping up at record speed. 

Prior to the IRA, the Investment Tax Credit provided tax credits for residential and commercial clean energy generation. However, tax-exempt entities like nonprofits, religious institutions, and other charitable organizations were unable to access commercial clean energy tax credits, since they paid no taxes which could be reduced. To address this, the IRA introduced elective pay, commonly referred to as direct pay, to provide tax-exempt organizations with payments equivalent in value to those that a commercial entity filing for clean energy tax credits would receive. Direct pay provides a base payment of 30% of the investment cost for clean energy projects.

Direct pay is lowering the barrier to entry for community-based clean energy generation, and organizations across the country are helping accelerate the spread of renewables. One such organization is RE-volv, a nonprofit that helps fellow nonprofits in underserved communities across the United States deploy solar systems to reduce greenhouse gas emissions and save money. RE-volv provides equitable solar financing, with all options requiring no upfront payment and saving organizations money on their electric bills on day one. 

RE-volv’s theory of change is focused on the “seeding effect” of solar energy, whereby commercial solar installations spur residential adoption of solar energy and create a ripple effect throughout the community. Since its founding, RE-volv has served over 70 nonprofits across 18 states, which now produce 4.3 Megawatts of solar power—or enough energy to power over 2,700 U.S. households.

Historically, nonprofits have shown interest in transitioning to clean power but often lacked the resources to make it possible. 

“For years, nonprofit organizations wanted to go solar but were held back by the costs,” explained Tierney Sheehan, communications and impact marketing manager at RE-volv. “Now, with this tax credit finally accessible, they are interested in learning more.”

RE-volv has been one of the first groups out of the gate to actually access direct pay. It received its first check from the Internal Revenue Service (IRS) in August 2024, marking a significant milestone for the organization. 

“We received our direct pay check in under a month, which was a huge win,” explained Sheehan. “This allows RE-volv’s dollars to go farther, reaching more nonprofits, and incentivizing more nonprofits to go solar due to increased savings and ease of doing so.”

Tax-exempt entities can now expect a minimum of direct pay benefits equal to 30% of a solar project’s installation costs. The IRA’s Investment Tax Credit also includes a system of bonus credits (commonly referred to as “adders”) that can increase total direct payments to as much as 70% of project installation costs. These adders aim to promote energy equity and environmental justice by providing additional funding to projects that benefit underserved communities.

For example, projects in low-income communities, on tribal land, in affording housing developments, or that directly benefit low-income households are eligible for an additional 10% or 20% bonus credit. This targeted credit ensures that historically disadvantaged communities can participate in the renewable energy transition. However, these credits require a separate application process and are capped to a finite number of projects for the United States as a whole, presenting complications for communities applying for the adder. 

“In an ideal world, there would not be a cap on the adder, and any project in a low- and moderate-income community would get the adder, similar to the energy communities adder,” says Andreas Karelas, executive director at RE-volv.

Even with these incentives in place, nonprofits may not be familiar with the processes for filing for tax credits with the IRS. To fill the knowledge gap, organizations like Lawyers for Good Government and the World Resources Institute are stepping up to provide guidance. Lawyers for Good Government created an interactive Clean Energy Tax Navigator to help organizations make the most of federal tax credits, providing step-by-step support in determining how to file for direct pay for electric vehicles, electric vehicle charging infrastructure, and renewable energy. Likewise, the World Resources Institute provides resources for communities interested in clean energy adoption, including breakdowns of all possible benefits and real-world case studies. This multi-sectoral approach allows for transformative on-the-ground changes in solar energy adoption across the country.

“We hope direct pay will create a surge in nonprofit solar projects—schools, churches, community centers, and charitable organizations finally greenlighting long-delayed installations,” says Sheehan.

RE-volv’s impact extends beyond solar installations. The organization is committed to community engagement and inspiring the next generation to pursue careers in renewable energy. Its Solar Ambassador Fellowship Program provides college students with hands-on experience in local solar projects. Day-to-day, solar ambassadors engage with nonprofits to explore solar opportunities, organize community events to build interest in solar energy, and develop valuable skills in coordinating solar projects. One such project, the LifeLine Animal Project in Atlanta, Georgia, demonstrates how solar power can transform communities. The LifeLine animal shelter’s new solar system offsets as much carbon dioxide as is produced by 1,000 gasoline vehicles annually, will save the nonprofit an estimated $1.6 million over its lifetime, and serves as a critical opportunity for community engagement with future renewable energy professionals. 

One student involved in the LifeLine project, Georgia Tech’s Julia Fleischman, reflected on the significance of the solar ambassadors’ work: “I believe people deserve access to clean energy, even if they don’t have the means to install it. I think it can inspire communities to want more, to push more for clean energy in their neighborhoods.”

As the United States accelerates its transition to renewable energy, organizations like RE-volv are ensuring that nonprofits and underserved communities are not left behind. The success of solar energy adoption will continue to depend on collaboration between policymakers, nonprofits, and local leadership—ensuring a sunnier future for all.

Author: Joshua Cohen

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