$4M in Solar Project Funding Directly Benefitting Faith-Based Organizations Available
Credit: CollectiveSun
CollectiveSun Foundation, a 501(c)3 nonprofit organization and philanthropic arm of CollectiveSun dedicated to advancing climate-friendly projects, announced that it has established a credit facility to fund $4 million of solar projects for faith-based organizations. The credit facility was created in partnership with the Interfaith Solar Campaign, whose mission is to promote solar energy adoption within faith-based organizations and their surrounding communities.
With support from BQuest Foundation, an impact investing based private family foundation, and Cornerstone Fund, a nonprofit financial institution that finances faith-based impact projects, the credit facility will be guaranteed by the Community Investment Guarantee Pool (CIGP). It is intended to expand access to solar project financing specifically for faith-based organizations.
The Inflation Reduction Act (IRA) has greatly increased opportunities for faith-based organizations and other nonprofits to benefit from solar energy. But it’s still challenging for nonprofits and especially houses of worship to access funding. These faith-based organizations are often excluded from traditional financing options or have limitations on the amount of funding they can obtain. This new credit facility, the first ever to be dedicated to faith-based organizations, addresses this issue.
CollectiveSun Foundation will manage construction, own, and operate the solar systems. Funding will be provided via the credit facility’s landmark three-party funding structure, which includes capital from two nonprofit foundations and a loan guarantee from a third nonprofit foundation. When a project is placed in service, CollectiveSun Foundation will manage all of the required tax credit filings and integrate tax credit gap financing into the structure. This approach allows for financing the tax credit gaps that would otherwise present a burden for a nonprofit.
“Faith-based organizations have historically been locked out of traditional financing options due to a lack of understanding and appreciation for the special connection and role they play in providing spiritual and critical social services in their communities. Where most lenders see risk, we see vibrancy and strength,” said Lee Barken, Chief Community Officer of CollectiveSun. “With this new credit facility and thanks to our values-aligned partners, we can now support numerous faith-based organizations in achieving their renewable energy goals.”
The solar projects that can be funded by the credit facility go beyond houses of worship. They include other kinds of facilities operated by faith-based organizations, such as food banks, affordable housing, retirement communities, and more.
Interfaith Solar Campaign has already helped several churches go solar, and the organization is currently in discussions with about 40 congregations of diverse faiths in Oregon and Washington. They have identified 30 other potential churches in lower-income communities that can benefit from the IRA’s low-income communities bonus adder. The campaign’s vision is to extend their reach to all qualified faith-based communities in the region and across the country.
“This innovative credit facility will help us build momentum for faith-based communities to lead the transition to renewable energy,” said John Pitney, retired United Methodist minister and Director of Outreach at Interfaith Solar Campaign. “While some houses of worship around the country have already installed solar, they’ve mostly done that in isolation. Collectively, we can have a much greater impact. We’re creating a movement of faith communities that, by putting solar on their buildings, are inspiring and motivating their congregants to take climate action as well.”
The credit facility is expected to fund 25–30 projects in Oregon and Washington, providing a model for expansion to faith-based communities nationwide. These projects will add to CollectiveSun’s growing pipeline of solar projects, which includes over 200 completed projects for nonprofits across the U.S., over half of which are for houses of worship.
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
