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This program pays nonprofits to take the time to consider solar

Canary Media · last updated

As a key deadline for federal solar tax credits ticks closer, a Massachusetts program is helping the state’s nonprofits get solar projects underway before the incentive disappears.

The Solar Upgrading Nonprofits, or SUN, program provides nonprofits with financial and technical assistance to evaluate options for solar installations and seek out additional funding if they choose to go forward. The first round, in 2025, worked with 23 organizations. Five have decided to move forward with installations that total 1.5 megawatts of installed capacity — double the goal for that phase of the program.

The stakes are even higher for SUN’s second round, which kicked off at the end of March. President Donald Trump’s One Big Beautiful Bill, signed last summer, put an expiration date on tax credits that can shave 30% to 50% off the cost of commercial-scale solar projects: They must start construction by July 4, 2026, or be placed in service by the end of 2027 to qualify — a tight timeline for most organizations.

“There is still time, but it is dwindling very quickly,” said Rachel Gentile, marketing and communications manager for Resonant Energy, the Boston-based solar company spearheading the initiative with funding from the Massachusetts Clean Energy Center, a quasi-public economic development agency.

Adding to the urgency is the fact that nonprofits have had relatively little time to take advantage of the tax credit. While for-profit businesses have been able to claim the incentive for some 20 years, nonprofits became eligible only with the passage of the Inflation Reduction Act in 2022. So, the elimination of the credit means it is disappearing before many organizations have even had a chance to dig into the possibilities.

“Nonprofits that have other missions that they’re dedicated to, it’s not necessarily on their list of priorities,” said Sanne Wright, community partnerships manager for Resonant Energy. ​“They’re already usually pretty strapped for cash and tight on capacity.”

The SUN program tries to overcome this barrier by making it easier for nonprofits to evaluate their options. The idea is modeled on another Resonant program, Solar Technical Assistance Retrofit, or STAR, which provides similar support to affordable housing providers looking to add solar to their buildings. Since its launch in 2021, STAR has installed 4.8 MW of solar capacity, with another 13.5 MW in the pipeline. When nonprofits became eligible for the federal tax credits, Resonant started thinking about how to adapt STAR for a new constituency.

The Massachusetts Clean Energy Center, which also funds STAR alongside the Jampart Charitable Trust, awarded the SUN program $150,000 for its first round and another $150,000 for the latest cycle. Resonant works with two partner agencies — Providers’ Council and the Essex County Community Foundation — to connect with nonprofits that might benefit from the assistance.

“Power is very expensive here,” said Kate Machet, vice president of systems initiatives and government relations for the Essex County Community Foundation. ​“This program has really allowed us to bring to our nonprofits on the ground the ability to explore solar.”