Churches, synagogues and mosques across the country are increasingly turning to solar energy to lower power bills and reduce their environmental impact.

Federal incentives passed in recent years have opened the door for more nonprofit organizations to install solar panels, including faith communities that were previously shut out of tax credit programs. But for some, including a small congregation in Greensboro, North Carolina, the process hasn’t been easy.

Peace United Church of Christ, a 120-year-old congregation with fewer than 100 active members, installed 98 solar panels on its roof earlier this year. Pastor Tom Warren said the church moved forward with the project after learning about rebates and tax credits that made it more affordable.

“Until those incentives came along, it felt out of reach for us,” Warren told WRAL News. “But once we realized we could get support from Duke Energy and the federal government, it became doable.”

The church used a combination of fundraising, a Duke Energy rebate, and a bridge loan from its national denomination to cover the nearly $100,000 cost. The congregation also applied for a federal tax credit made available to nonprofits through a program known as elective pay or direct pay. That application was filed in March 2025, after the solar system officially went live in March 2024.

While the church expected to receive about a third of the cost back through that credit, its application was denied. A letter dated April 18, 2025, arrived at the church in early May with no clear explanation for the rejection.

“It’s a bit of a dark cloud hanging over what has otherwise been a great success for us,” Warren said.

The church has already seen significant savings on its power bills. In April, before switching to solar, the church paid more than $1,000. The first full month after going solar, the bill dropped to about $386. Monthly savings vary with weather, but Warren said the church is consistently paying at least 50% less than it did before.

An IRS spokesperson told WRAL that the tax credit remains in effect through 2032, but warned that recent staff reductions could lead to processing delays or mistakes. The agency declined to comment on specific cases.

Growing demand from houses of worship

The project at Peace United Church of Christ is part of a broader wave of solar adoption among houses of worship, according to 8MSolar, the company that installed the church’s solar array.

“Over the last two or three years, we’ve seen a wave of nonprofits and churches going solar—partly because of new incentives, but also because more people in their congregations are doing it at home and having great experiences,” said Jonathan Crawford, lead commercial consultant with 8MSolar. “It’s becoming a no-brainer.”

Crawford said his company is seeing increased demand from faith communities across the state, including recent projects at Chapel Hill’s historic Chapel of the Cross, Congressional Church of Pinehurst, and College Park Baptist.

Many churches, he said, are motivated by both financial stewardship and environmental responsibility, as utility rates continue to rise.

“When you look at energy costs over 25 years, solar is dramatically cheaper,” Crawford said. “Utility rates keep going up, but solar locks in your price—sometimes a quarter of what you’d pay the power company.”

A community ripple effect

Federal data shows that solar adoption has historically been more common in wealthier, predominantly white communities. But new incentives have helped expand access to nonprofits, including faith-based organizations with tight budgets and aging buildings.

Many houses of worship double as community centers or emergency shelters, making reliable, local power an added benefit. Peace UCC leaders hope to eventually expand their solar system to replace the church’s outdated heating system with an all-electric alternative powered by the sun.

The church recently launched a “Creation Care Committee” to explore more environmental projects both on its campus and in the local community.

“This isn’t just about our electric bill,” Warren said. “It’s about living our values and showing what’s possible.”

What to know before going solar

While the financial and environmental benefits of solar energy can be significant, experts advise churches and other nonprofits to do their homework before committing to a project.

Tips include:

Getting multiple quotes from licensed installers.
Consulting a tax professional to navigate the credit application process.
Preparing to pay up front while waiting for rebates or tax credits to be processed.

Crawford said while delays and paperwork challenges can be frustrating, solar remains a reliable long-term investment.

“There’s a lot of excitement when people see the benefits firsthand,” he said. “But it’s important to have realistic expectations about the process and the timeline.”

Despite the financial uncertainty, Warren said the project has united the congregation and sparked new energy for environmental action.

“No one’s giving churches a raise,” Warren said. “But by going solar, we’re able to save money while saving God’s creation.”