First Unitarian and Solar Electricity - An Update

Two years ago our parish attempted to implement the installation of solar electric cells on the roof of Unity Hall. The electric power generated would reduce our utility bills, and we would be doing our part, however small, to “save the planet” by reducing our carbon footprint.

That attempt was unsuccessful – our application for financial grant assistance from a state program did not survive, largely due to issues of separation between church and state, and a very competitive field. Without that grant, we faced too great a challenge to our finances, and the idea was set aside.

The picture in the renewable energy arena has changed substantially since then, however. The price of solar photovoltaic cells has dropped, the state has modified its grant program in ways that makes it more attractive, and the federal government has entered the picture by offering generous tax credit incentives to those who install renewable energy hardware.

That term tax credit applies only to those for-profit entities that pay taxes. We, as a tax-exempt organization, are thus not eligible for the federal incentive support. But if the solar hardware were to be bought and installed by a for-profit entity (other than the church), we would become eligible for the federal tax credit. That entity would in turn sell the electric energy to the church at a reduced rate, and realize a small revenue stream that would be its profit. In consideration for the use of the Unity Hall roof as a site for the solar collectors, this for-profit LLC (Limited Liability Corporation) would sell its energy to the church at a pre-determined discounted rate, relative to the public utility’s charges.

The formation of such an LLC has been proposed, and has been reviewed and approved by our church attorney. The church’s Prudential Committee has expressed interest and approval to proceed, subject to review and final approval by the congregation. The next step in this process is to solicit interest in this rare investment opportunity, and to assemble the member/ investors of this LLC. It must be emphasized at this point, that the preliminary analysis shows this would be a low-return, low-risk venture. It would offer church members a way to participate in a “save the planet” initiative.

If this opportunity interests you, please attend an information and discussion session at noon on Sunday, January 24, in the Chapel.

Sincerely, Jim Demetry

For further information email office@firstunitarian.com