Many nonprofit organizations would like to make upgrades to their properties as well as reduce their cost of operations but have trouble funding the project as they are not eligible for the same tax credit as for profit organizations. Founded in 2011 on the belief that all nonprofits and tax exempt organizations should have access to solar power, Collective Sun offers a unique opportunity for nonprofits to fund their solar projects. PurePoint Energy agrees with this principle and is excited to provide this unique financing option to nonprofit organizations in Connecticut. The best part is that it can reduce solar investment by 15%!
How does it work?
Collective Sun utilizes the Federal Solar Investment Tax Credit and provides a 15% discount to the project cost. Financing can be provided with C-PACE via a 20 year loan. Collective Sun initially maintains ownership of the system to use the tax benefits. The nonprofit sees utility bill savings immediately and takes full ownership of the system at no additional cost in just 6 years.
PurePoint Energy’s Role:
Once you have chosen solar experts PurePoint Energy as your solar installer, we take care of reviewing and submitting the requirements to close the project. Collective Sun will review all submitted documents and complete a 3rd party engineering review as well as a final review of the nonprofit. Collective Sun then secures a position in the tax investment schedule. Once that is complete, PurePoint Energy receives a notice to proceed (NTP) to begin construction. At the completion of installation, PPE will coordinate with the local utility to energize the system.
How can it be funded?
Funding is not limited to the C-PACE program and can be one or a combination of any of the following 5 options:
1. Loans: can be from a variety of sources
a. Existing Bank Relationship
b. Program Related Investment Loans (PRIs)
c. Nonprofit Specialty Lender Loans
2. Property Assessed Clean Energy (PACE)
5. Crowd Lending/ Peer-to-Peer Lending
To learn more about how Collective Sun can assist in funding your solar installation for your nonprofit organization, please call PurePoint Energy at (203) 642-4105.