This quarter’s newsletter shines light on rate hikes and their impact on solar feasibility, upcoming tax incentive changes, our recently completed projects, and upcoming events.

Exciting News!

The Green Lining

Electric utility rates have been rapidly increasing across the U.S. According to the NPR Economy section, electricity prices are climbing more than twice as fast as inflation.

Since 2020, the MPSC has approved nearly $800 million in annual revenue increases for Consumers Energy.

With federal solar incentives for residential properties sunsetted at the end of 2025, and commercial properties (Direct Pay) being sunsetted at the end of 2027, opportunities for solar may seem bleak. However, with electricity rates perpetually on the rise, solar energy will continue to be viable.

The more utility bills rise, the more financial sense it makes to install solar panels. Compared to buildings powered by energy from the grid, buildings powered by solar will save more money in the long run. Last year, Energy Innovation estimated that energy provisions from the 2025 Reconciliation Bill would lead to wholesale electricity prices rising by 74% through the next decade. This would increase household energy costs by $170 annually by 2035.

The perpetual rise in rates is concerning, but the “Green Lining” of it all is that solar will be increasingly financially viable into the future, even after federal incentives sunset in December of 2027. Additionally, before then, there is still time to obtain the 30–40% federal incentives (Elective Pay) for solar for your congregation. If your solar project is placed into service by December 31, 2027, you will be eligible to receive the Investment Tax Credit (ITC). See more detailed information on the timeline of the incentives sunset below.

If you have any questions about solar for your faith-based organization or nonprofit, we are happy to answer them and figure out the best way forward alongside you. Email co************@***********ul.org with any inquiries.