Why You Should Invest In Solar For Non-Profits
When it comes to Uncle Sam’s tax code, American non-profits often have a hard time funding solar energy. Without taxable income, non-profits are excluded from federal tax benefits that can reduce the cost of adding solar by as much as 55%.
But with about 1.5 million charitable entities operating in the US (per the National Center for Charitable Statistics ), neighborhood churches, schools, homeless shelters, and other private organizations represent a substantial, untapped opportunity for solar energy production.
That is why SDC Energy turns investing in non-profits into a viable solar business opportunity. We convert small to medium-sized non-profit roofs into valuable assets for our investors. SDC Energy’s unique form of directed philanthropy through social financing lets investors triple their impact with socially-minded solar financing that protects the planet, supports philanthropic organizations, and boosts their portfolio.
Solar investing is providing double-dip opportunities for investors: tax incentives and revenue from the tax savings or sale of the electricity that makes solar a smart investment choice. Instead of simply donating money to nonprofits, “social investing” in a non-profit’s solar project boosts an Investor’s portfolio by redirecting taxes for social good, leaving money available that otherwise would have gone to pay taxes. All the while helping to reduce the non-profit’s operational costs not just one time, but for the next 20 years and doing it with clean, sustainable power.
“Investors can double their Impact with socially-minded solar financing: they get tax benefits and a cash return on their investment while helping non-profits provide much-needed services to their communities,” said Charles Schaffer, President, SDC Energy.
Benefits available to solar investors:
Investment Tax Credit (“ITC”) – Purchasers can take a tax credit equal to 26 percent of their cost basis in a new solar system.
Bonus Depreciation – Business owners of solar systems are eligible to depreciate 100 percent of their basis in the first year (after subtracting ½ of the available Investment Tax Credit).
Revenues from the sale of solar electricity on Monthly paying solar agreements OR tax savings to re-invest in other income-producing investments.
Investing in solar offers sophisticated investors strong returns and robust tax advantages with minimal exposure to market volatility or increased audit risks. Of the various tax-advantaged options, solar is the easiest to understand, has the lowest potential risk of audit, and generates the most consistent cash flow for the entire duration of the project.
If you are interested in investing in one of our solar development projects, please contact us so that we can discuss your investment options.
