news article
Solar incentives for churches expire soon
April 27, 2026 / By Rev. Merle Showers, UNY Creation Justice / .(JavaScript must be enabled to view this email address)
If your church has even considered installing solar panels, the window to receive significant federal financial support is closing faster than it may appear and waiting much longer could cost you tens of thousands of dollars in missed reimbursement.
Financial help is available through the IRS solar “Elective Pay” program, but key deadlines are approaching quickly. To qualify, your project must be registered with the IRS by July 4, 2026. That may sound like time, but completing the necessary planning, securing a contractor, and filing correctly can take weeks, or even longer. If you meet that registration deadline, your church will have up to four years to complete the project and receive reimbursement based on the project size.
If you miss the July 4 registration deadline, there is still a narrow fallback, but it comes with pressure. Projects can still qualify, only if they are fully completed by the end of 2027, significantly shortening your timeline and increasing the risk of missing out entirely.
The “Elective Pay” program requires the church to pay upfront for the installation. Once the project is completed and properly filed, the federal government reimburses a percentage of the total cost; however, this is not a simple process. The application and compliance requirements are detailed and must be handled carefully. Most churches will need legal assistance to ensure everything is completed correctly, and mistakes could delay or jeopardize reimbursement.
There are also financial thresholds to keep in mind. A minimum of more than 5% of the project cost must be paid upfront to a qualified contractor, though many recommend committing 12–15% early to protect against cost overruns and demonstrate project viability.
Registration is completed online with the IRS using Form 990-T. Because of the complexity and the limited time remaining, it is strongly recommended that churches connect as soon as possible with Lawyers for Good Government, which offers free assistance for organizations navigating the Elective Pay program. Their intake form can be found here.
Every week of delay makes it harder to meet the requirements and secure funding. If solar has been on your radar at all, now is the time to move from “thinking about it” to taking concrete steps. Missing this opportunity isn’t just a delay, it could mean losing access to a major funding source altogether.