Navigating Public Solar:​ Unlock federal funds and achieve your community’s climate goals​

Contract with new clean energy infrastructure, access newly available federal funding, AND KEEP the benefits within your community ​

Municipalities and other not-for-profit organizations interested in contracting with regional projects and/or utilizing their land and buildings for new renewable energy and storage projects, have mainly been able to do so to-date, by leasing out their property to project developers or by investing in their own solar panels. While this helps communities bring in a small amount of income or reduce costs over time, it often does not give communities control over how the projects are developed, who benefits from the projects and how. The Inflation Reduction Act (IRA) that was passed into law August 2022 by the Biden administration changes this dynamic, enabling communities to access direct payments either for themselves and/or their low- to moderate-income residents, through contracting with local solar or storage.​

The IRA directs nearly $400 billion in federal funding to clean energy projects in an effort to lower carbon emissions. The Act opens the opportunity for local actors to benefit directly by contracting with projects, and makes federal funds available to tax-exempt organizations like municipalities to help offset their project costs – should they decide to develop themselves. ​

The important change the IRA brings to municipalities is that the Act changes who can access investment tax credits (ITC). These credits have previously been available only to organizations with significant tax liability. Now, tax-exempt organizations including local governments and NGOs can also benefit from federal funds for supporting and contracting clean energy infrastructure, opening new opportunities for project development and income streams.​

The funds can be accessed through a new direct pay option that enables tax-exempt organizations to receive a refund from the IRS for tax credits on projects placed in service after 2022. This refund is approximately 30% of the total project value with additional bonuses that can stack the ITC value to reach 40-70%. In particular, support is enabled for projects benefiting low to moderate income residents.​

Joule Community Power provides you with the tools needed to navigate and act on the opportunity to contract with or develop local projects, take advantage of nearby projects, and maximize community benefit, including for your low- to moderate-income residents. Learn more or contact us.

Additional Resources

Information on the Investment Tax Credits for renewable energy credits from the EPA and the guide to solar ITC:​

• https://www.epa.gov/green-power-markets/summary-inflation-reduction-act-provisions-related-renewable-energy​

• https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses​

Saving Green While Going Green

Clarkstown protects residents from high energy costs by taking climate action

“Even though energy rates are the highest they’ve been since the 1980's, we have been able to save our residents money and give them predictability through a fixed electricity rate, and that’s been extraordinarily helpful for our residents.”

Clarkstown Supervisor, George Hoehmann describes how one of the municipality’s ongoing climate initiatives—a local clean energy community choice program called Rockland Community Power—has allowed local leaders to protect residents from a dramatic upward swing of energy prices by securing a lower, fixed electricity rate.

As a result, Rockland Community Power participants have saved more than $5.5 million dollars since the program launched in November 2020. Clarkstown residents have saved more than $2.7 million so far, and the program has also enabled the vast majority of households to switch over to 100% renewable electricity.

Supervisor Hoehmann continues to have ambitious objectives for his community.

“Our goal is to take Clarkstown operations off the grid. To do that, we’d need to build out another roughly 2 Mgw of solar or renewables; but the goal is to be the first town in all of NY State to be net neutral in energy usage.”

Clarkstown milestones:

• First municipality in NY State to build a solar field on a closed landfill (2014)

• Early adopter of LED streetlights (2016)—Clarkstown was, as Supervisor Hoehmann says of this project, ”the first on this side of the Hudson River, between New Jersey and Albany”, to install LED streetlights, saving the Town ~$ 1 million/year while drastically reducing energy consumption

Upcoming Town Projects:

• Solar power for municipal buildings

• Charging stations for electrical vehicles and solar carports by the Town Hall and at a local park

Supervisor Hoehmann explained, “Beyond the immediate cost saving benefits and reduced carbon emissions, the clean energy program, has also helped the town access State funding for future projects.” He continued, “The CCA really helped us attain designation as a Clean Energy Community, thereby qualifying us for and opening access to grants for charging stations and other projects. These projects will, in turn, give us more points in NYSERDA’s ranking system and qualify us for even larger grants.”

Final thoughts...

Being at the forefront of local climate action efforts is a familiar realm to Supervisor Hoehmann. Even before becoming Clarkstown’s Supervisor in 2016, he brought solar to a number of agencies. In his earlier role as CEO and administrator of Camp Venture (a nonprofit provider of support and services for people of all abilities, ages, and special needs) Hoehmann was the first in NY State to install solar on a group home. "I really believe that where there's a will, there's a way," said Hoehmann as our interview wrapped up; and he does, in fact, seem to embody the adage.

Joule serves as program administrator for Rockland Community Power, Clarkstown’s local clean energy community choice program.