A federal rule makes it easier for churches, synagogues and mosques to put solar panels on the roof.This coverage is made possible through a partnership with Grist and Interlochen Public Radio in Northern Michigan.

On a Sunday morning in Charlevoix, a small town surrounded by lakes in northern Michigan, people gathered in the Greensky Hill Indian United Methodist Church. The small, one-room log building is almost 200 years old and the hymns are sung in English and Anishinaabemowin. It was December, so Pastor Johnathan Mays was leading an Advent service, one of his last, since he would soon retire. In between reflections on scripture, Mays touched on an important venture: The church is planning to install solar panels on their larger meeting hall, working with Michigan-based nonprofit Solar Faithful to do so.

Greensky Hill has a long history of environmental care and stewardship, grounded in Anishinaabe culture, with a majority Native congregation. One of the ministry’s priorities is the “greening of Greensky Hill.” Mays said that prompts them to ask “how we can use our space and our resources to address those issues for climate care, or creation care, or what some people call Earthkeeping?”

As Greensky Hill works to become more sustainable, it’s switching from propane to heat pumps to become more energy efficient. Mays said solar will allow them to use renewable energy and give that energy back to the grid. “The biggest issue was how can we get this huge building off of greenhouse gas creation?” he said, referring to the meeting hall, which was built in the 1990s. Across the country, houses of worship are pursuing solar systems. As of 2021, about 2 percent of houses of worship in the United States have solar systems, according to Lawrence Berkeley National Laboratory, which the University of California manages for the U.S. Department of Energy. That’s disproportionately high; houses of worship make up only 0.6 percent of all non-residential buildings.

But these projects can be difficult to execute. Congregations can have tight budgets, older buildings and more pressing priorities. And switching energy systems can mean a lot of bureaucratic paperwork for which they might not have the staff. 

And, because houses of worship generally don’t pay taxes, they’ve also had trouble capitalizing on renewable energy tax benefits.

One alternative has been for them to work with third parties that could benefit from the tax credits. For instance, an investor could buy and install solar panels on a church. The church would buy that power from the investor, but wouldn’t own the panels — an arrangement called a power purchase agreement.

Now, they have another option. The federal Inflation Reduction Act has made it possible for governments and tax-exempt entities, including houses of worship, to get tax credits for renewable projects. Called direct pay, the program provides them with a tax credit worth up to 30 percent of the installation cost. That can help cover some expenses, and advocates say it’s critical to getting more congregations to consider solar.

“I expect in the coming year, it’s really going to boom, the solar on houses of worship,” said Sarah Paulos, the programs director for Interfaith Power and Light. “It makes a lot of sense. If they can cut their utility bill way back, then they have more money to do what they’re there for, which is their mission.”