Across Indiana, Montana, Kentucky, Washington, and other states, Catholic churches and dioceses are racing to complete solar panel installations as fleeting federal incentives threaten to make those projects harder to fund.
For many of these institutions, the outcome of the rush could determine whether solar power is affordable now or delayed for several years.
What happened?
The One Big Beautiful Bill Act, which passed last year, shortened the timeline for many solar and wind projects to qualify for major federal energy incentives.
As a part of OBBBA, it cut short the Inflation Reduction Act's support for tax-exempt organizations to go solar, per the National Catholic Reporter.
In most cases, projects now need to be completed by the end of 2027. They may still qualify on a longer timetable if significant construction is underway by July 4 of this year, or, for smaller solar systems, if at least 5% of the total project costs have already been committed by that time.
One potentially impacted clergyman, Father Michael Surufka, told Earthbeat, "There's no question that [going solar] is consistent with what the church has been asking us to do and to be responsible stewards of creation for a long time," he said.
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Surufka and his congregation are now racing to complete the solar installation before the funding dries up.
Why does it matter?
Under the federal Direct Pay program, organizations such as churches can receive a credit covering 30% of project costs, and some may qualify for additional bonuses that bring that figure close to 50%. For many institutions, that kind of support can make solar a realistic investment instead of a difficult expense.
Lower utility bills can free up funding for schools, food programs, building maintenance, and other services communities rely on. Importantly, solar projects can also help reduce the harmful air pollution associated with fossil fuels.
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