Weekend-heavy loads and net-metering credits
Church electricity use clusters around services, events and fellowship meals, plus weekday office hours and any preschool or food-pantry programs. A lot of solar output will be exported on quiet weekdays. Under Colorado net metering, those exports are credited against later use, with credits carried forward; the value of each exported kWh varies by utility, so read your utility’s tariff or ask us to.
Because the system is sized to annual consumption, not roof area, a church with modest use may need less solar than its roof can hold.
Elective pay: federal credits for tax-exempt owners
Tax-exempt organizations, including churches, can generally elect to receive the §48E investment credit as a direct payment from the IRS under the elective-pay provision (§6417), rather than as a tax offset. Solar must generally be placed in service by December 31, 2027 to qualify under current rules, while storage keeps eligibility much longer.
There are real details: registration with the IRS before filing, sourcing rules on foreign entities of concern, and domestic-content requirements that can reduce the payment for larger projects. Consult a tax advisor who has handled elective pay before your board commits funds.
Buying, financing, or a PPA
Congregations commonly pay from a capital campaign, finance with a loan, or sign a PPA where a third party owns the system and sells the church power at a set rate. With a PPA, the owner claims the federal credit, and the church takes on no upfront cost but also doesn’t own the system for its term.
Whichever route you choose, build the decision around your governing body’s approval process. We provide a proposal board members can read without an engineering background.
Historic buildings and roofs
Older sanctuaries may have slate, tile or steep roofs, or sit in historic districts where visible arrays need approval. A fellowship hall, education wing or parking-lot ground mount is often the better location. Ground mounts are something we build regularly, and they keep equipment off roofs that are hard to work on.
FAQ
Questions we hear
Our church pays no taxes. Can we still benefit from federal solar incentives?
Generally yes, through elective pay, which lets tax-exempt entities receive the §48E credit as a payment. Registration, deadlines and sourcing rules apply, and solar must generally be in service by the end of 2027. Confirm with a tax advisor.
We only use the building heavily on Sundays. Does solar still make sense?
It can, because net metering banks weekday production as credit for weekend use. Size the system to your annual use, not your roof, and check how your utility values exported power.
Would a PPA make more sense than buying?
A PPA avoids upfront cost and lets the system owner claim the credit, but you give up ownership and lock in a rate for the term. Buying with elective pay often yields more long-term value if the church can fund it. Compare both in writing.
Can solar go on a historic church building?
Sometimes, with approval from the local historic commission. Many congregations put arrays on newer wings or on a ground mount instead to avoid altering the historic roof.