Direct Pay: A Game Changer
for Equitable Solar Access

What is Direct Pay?

Direct Pay, also known as elective pay, is a provision of the Inflation Reduction Act that allows nonprofit organizations and other tax-exempt entities, for the first time ever, to receive federal tax credits for clean energy projects. Nonprofits can receive a direct payment of the tax credit, i.e. a check from the government, which can be more than 30% of the cost of their solar system.

According to the U.S. Treasury, as of September 2024, over 1,200 organizations have registered their solar projects for Direct Pay!

How RE-volv Helps Nonprofits Unlock Savings

RE-volv uses a blend of philanthropic and investment capital to provide nonprofits with solar for zero money down and monthly savings on their electricity bills. Now that this Federal solar tax credit is available to nonprofits, RE-volv is able to provide even greater savings.

Within RE-volv’s Power Purchase Agreement (PPA) and solar lease agreement, we are able to file for Direct Pay on behalf of the nonprofit and pass additional savings through to them. This is because we are the third party owner of the solar system. For loan agreements, where nonprofits own their systems, we support nonprofits with the Direct Pay filing process and factor savings into their agreements from day one. So, projects built this year are already feeling the savings from Direct Pay.

RE-volv Receives its Direct Pay Check

The RE-volv Team celebrates after receiving a Direct Pay check in the mail for our 2023 nonprofit solar projects.

RE-volv was thrilled to receive Direct Pay savings for the following six nonprofits that we have solar loan agreements or Power Purchase Agreements (PPAs) with!

1 WestCare Wisconsin Milwaukee, Wisconsin, offers health and human services in residential and outpatient settings, including community organizing programs.
2 Plumas Charter School in Plumas County, Northern California is a no-cost public school.
3 Sandy Spring Friends Meeting in Maryland, is one of the oldest Quaker Meetings in the state. Sandy Spring is active in the community and advocates for environmental, social justice, peace, and educational causes.
4 Turner Hall in Clinton, Massachusetts is a community center.
5 St. Vincent De Paul San Clemente Conference in Los Lunas, New Mexico is a nonprofit that provides community outreach, food distribution, and financial assistance to 900 low-income families annually.
6 Emmaus Campus Ministry in Missoula, Montana, is a Christian ministry that has been serving the University of Montana campus since the 1950s.

Resources + Direct Pay Stories

RE-volv is also taking steps to educate nonprofits, solar installers, and clean energy advocates on Direct Pay. Through partnerships and convenings, with the U.S. Treasury, the White House, Climate United, Rockefeller Foundation, Invest in Our Future, RMI, SEIA, and more, our collective hope is for more nonprofits to go solar and benefit from Direct Pay savings!