Solar panels cut a church’s electric bill to 86 cents. This agency ensured it got a tax refund too.

ANN ARBOR, MI — Five years ago, When Pastor Calvin Glass discovered his Detroit neighborhood received an “F” grade for pollution in a United States Environmental Protection Agency survey, he was determined to change that.

The pastor at the Lord of Lords Ministry, 9341 Chalmers St., started teaching his community about environmental stewardship. Then, two years ago, he installed 26 solar panels at the church to transfer all his energy to solar.

Glass sought to cover the cost of his solar investment through Elective Pay, a new provision under the federal Inflation Reduction Act of 2022 that allows tax-exempt organizations to receive direct cash reimbursements from the IRS for clean energy investments.

Glass had been struggling to receive the reimbursement, he said, but was connected with the newly-launched Michigan Technical Assistance Center (TAC) in the Michigan Infrastructure Office, which helped him secure a refund of just over $13,000, he said.

“It’s a small church and we’re in a disadvantaged community and it’s just hard to even do our regular program,” Glass said. “So this (refund) was a breath of fresh air.”

After the solar panel installation, Lord of Lords’ electric bill went from $300-500 to between 86 cents and $5, Glass said.

TAC, established by law in 2022, is hoping to help other nonprofits, faith organizations, schools, municipalities and other eligible statewide entities that do not typically file taxes, invest in renewable energy and receive a tax refund from the IRS.

“Because this is a new opportunity for them to interact with the IRS, often they don’t know about the program because they don’t file taxes and don’t think it’s appropriate or applicable to them,” said Kris Brady, the director of TAC. “So what we’re doing is reaching out everywhere we can in the state to let the organizations know that this program is there.”

TAC’s Elective Pay program started in the beginning of 2025 with webinars and conferences across the state to share the opportunity to invest in renewables to both save on electric bills and receive a refund, Brady said.

The recently passed Federal Budget Reconciliation bill has affected elective pay. The law has created tighter timetables for instituting renewable energy to receive refunds and getting rid of some altogether, Brady said.

“There’s been a lot of movement within the federal government around canceling these types of programs or shortening them,” Brady said. “…And folks are pretty shy about making investments right now and not knowing exactly how they’ll pay for it.”

The effects of the federal law have eliminated the tax credit for electric vehicle purchase after Sept. 30, Brady said. That will impact school districts who’ve been interested in investing in electric school buses, she added.

“School districts, if they’re using their capital to purchase part of the school buses, they need to do that before that credit expires, which kind of points to the urgency of us getting the word out,” Brady said.

Brady, however, admits the electric vehicle credit was among the smallest credits.

Geothermal and battery storage projects, which have been popular within Michigan, are not affected by the new federal law, said Cassie Rowlands, Elective Pay Program Manager for TAC.

With so much “movement” within the federal government’s legislation, TAC is aiming to inform their clients and potential clients on the different timetables and changing restrictions. If an organization is considering investing in renewable energy Brady recommends they make that investment “the sooner the better.”

Brady said potential clients interested in investing or who have invested in renewable energy should start by visiting TAC’s Elective Pay website to see if they meet the criteria for a tax refund and learn how to start the refund process.

The money Glass and Lord of Lords saved from their electric bill along with the $13,000 tax refund has gone to purchasing two nearby vacant buildings they plan to also make energy-efficient, Glass said. He recommends other nonprofit organizations use TAC and Elective Pay.

“My philosophy is, ‘We don’t want a hand out, but we do need a hand up,’” Glass said. “And this office (TAC), has given us a hand up to help us to understand the government better, help us to understand the solar world better.”

In Ann Arbor, the Humane Society of Huron Valley, 3100 Cherry Hill Road, installed 474 solar panels on top of their buildings in 2022. They received a $100,000 tax refund from the IRS.

Their installation has saved nearly $30,000 in energy costs per year, Chief Financial Officer Jonathan Trevathan said. In 25 years, they’ll have saved $850,000.

The savings have been redirected towards paying veterinarians and veterinarians techs the humane society employs, as well as covering animal care.

“If there’s a family that wants to keep their animal, and it’s a financial thing, we can help out with some cat litter or some dog food or cat food,” Trevathan said. “So that $100,000 can allow us to do a lot more as far as preventing animal homelessness.”

Although TAC wasn’t involved in helping the humane society secure its refund, the agency highlights it as a success story for what other organizations can achieve with their assistance.

“They also have a dual mission… serving animals and serving the environment,” Brady said.

TAC hopes to get their message out so other eligible organizations follow the same path.

“If you do clean energy work, we want to help you get the money that you should get back,” Brady added.

Want more Ann Arbor-area news? Bookmark the local Ann Arbor news page.