Last verified: 2026-05-17
Time-sensitive: The federal 30% solar tax credit for nonprofits is being phased out under the July 2025 "One Big Beautiful Bill" (OBBB). Projects generally need to start construction by July 4, 2026 to lock in the full credit. If you are a nonprofit considering solar, act now. [Source: collectivesun.com/three-things-nonprofits-need-to-know-about-the-inflation-reduction-acts-direct-pay-provision/ (accessed 2026-05-17)]
What CollectiveSun does
CollectiveSun is a private company (operating since 2011) that helps nonprofits and other tax-exempt organizations pay for rooftop or ground-mount solar. Nonprofits do not owe federal income tax, so they historically could not use the 30% solar tax credit. CollectiveSun's models route the credit's value back to your organization, lowering the upfront cost of your solar system. [Source: collectivesun.com/nonprofits/ (accessed 2026-05-17)]
They have worked with 200+ nonprofits in 24 states — churches, schools, clinics, food banks, animal shelters, and community centers. [Source: collectivesun.com/nonprofits/ (accessed 2026-05-17)]
Who qualifies
- 501(c)(3) nonprofits
- Houses of worship
- Schools and school districts
- Other tax-exempt organizations
- Tribal governments and municipal entities (under the IRA direct-pay rules)
You need a building you own (or a long-term lease with permission) and an electric bill big enough that solar makes financial sense — typically $500/month or more.
What you get
CollectiveSun offers three financing paths:
- Solar Power Agreement (SPA) — A service agreement (similar to a lease). CollectiveSun owns the system, captures the federal tax credit, and passes the value back to you as a discount. Historically this saved roughly 16% or more off an installer's bid, though the exact percentage now depends on the post-OBBB credit rules — confirm current numbers with CollectiveSun. $0 down. [Source: collectivesun.com/nonprofits/ (accessed 2026-05-17)]
- Prepaid SPA — Same structure, paid up-front for a larger lifetime savings.
- Solar Loan — You own the system and use IRA "direct pay" to get a cash payment from the IRS equal to the value of the 30% tax credit (and possibly more with bonus adders). [Source: collectivesun.com/three-things-nonprofits-need-to-know-about-the-inflation-reduction-acts-direct-pay-provision/ (accessed 2026-05-17)]
CollectiveSun also helps you find low-cost loans, crowd-lending, and donations to cover the remaining cost.
How to apply
- Get 3 installer bids. CollectiveSun can introduce you to installers they've worked with, or use EnergySage to compare bids online.
- Contact CollectiveSun at collectivesun.com/contact-us or call 888-980-CSUN (2786). Email: info@collectivesun.com.
- Pick a financing path with their team (SPA, Prepaid SPA, or Loan + direct pay).
- Sign contracts and start construction — critical to begin before the July 4, 2026 deadline to preserve the 30% credit.
- Flip the switch — savings start the day the system is energized.
Common pitfalls
- Don't wait. OBBB and follow-on executive orders shortened the runway. Projects that miss the construction-start deadline may lose the 30% credit entirely. [Source: collectivesun.com/three-things-nonprofits-need-to-know-about-the-inflation-reduction-acts-direct-pay-provision/ (accessed 2026-05-17)]
- Direct pay requires IRS pre-registration. If you go the loan route, you must register the project with the IRS before filing for the credit. CollectiveSun and the IRS itself host office hours to walk nonprofits through this — IRS office hours are available through January 2026 and may extend. [Source: collectivesun.com/more-irs-office-hours-available-through-january-2026/ (accessed 2026-05-17)]
- Get multiple bids. Solar installer pricing varies widely. Three bids is the minimum to know you're getting a fair price.
- CollectiveSun is one option, not the only one. Solar United Neighbors and local solar co-ops also help nonprofits — compare.
Where to get help
- CollectiveSun: 888-980-CSUN (2786), info@collectivesun.com, collectivesun.com
- EnergySage (bid comparison): energysage.com
- Solar United Neighbors (nonprofit-focused guidance): solarunitedneighbors.org/resources/solar-for-nonprofits/
- IRS Direct Pay registration: search "IRS Energy Credits Online" or attend an IRS office-hours session via CollectiveSun's resource page.
Sources
- CollectiveSun nonprofits page — https://collectivesun.com/nonprofits/ (accessed 2026-05-17)
- CollectiveSun direct-pay primer — https://collectivesun.com/three-things-nonprofits-need-to-know-about-the-inflation-reduction-acts-direct-pay-provision/ (accessed 2026-05-17)
- CollectiveSun IRS office hours notice — https://collectivesun.com/more-irs-office-hours-available-through-january-2026/ (accessed 2026-05-17)
