A growing variety of options are making it financially viable for cities, businesses, utilities, and more to transition to solar lighting. Need help navigating the possibilities? You’re in the right place. Our team has helped connect hundreds of customers with funding sources they weren’t previously aware of, and our grant-writing specialists can help you craft a winning application. Whether you need a little or a lot to complete your solar lighting project, funding is available, and we’re here to help you find it!
The Investment Tax Credit (ITC) is a federal incentive that reduces income tax liability for a percentage of the cost of a solar system in the year it’s installed. It was recently expanded under the Inflation Reduction Act (IRA) to make it easier for tax-exempt entities (like state and local governments, non-profits, and tribal councils) to access. Developers and other businesses can also benefit from the ITC, transferring their credits for cash.
The base credit for solar lighting installations <1MW is 30%. However, there are also a number of bonus credits that can be applied to increase the credit. These amounts ‘stack,’ so a project that meets multiple bonus requirements could cover a substantial portion of its costs using the ITC. It can also be combined with other government grants (see below).
Direct (or elective) pay applies to states, cities, tribes, publicly-owned utilities, and other nonprofit institutions like hospitals and universities. It allows these organizations to receive a “direct” cash payment equal to the value of the tax credit. This is the first time tax-exempt entities have been able to take advantage of clean energy tax credits.
For tax-paying businesses and developers not eligible for direct pay, the IRA added an option to sell all or a portion of their credit to an unrelated party for cash. Historically, many companies didn’t have enough tax liability to use the credit fully—now they can transfer it, recoup a portion of their costs, and maintain full ownership over their projects.
There’s more money than ever for renewable energy projects like solar lighting. In addition to the IRA, there’s also the $1.2 trillion Bipartisan Infrastructure Law, which created and expanded an array of federal funding programs that can be tapped to upgrade infrastructure, reduce emissions, and build resilience. (Solar lighting does all of these things!)
While more grants is obviously a good thing, the time and effort it takes to find and apply for them is… a lot. That’s where our grant consultants and writers come in. We work with an experienced, professional team of grant specialists that can help research, write, and manage your grant applications. They’ve helped hundreds of customers find and win funding—and they’re ready to help you!
Want to get an idea of the types of grants applicable to solar lighting? Here are some of our favorites, all of which name LED or solar lighting as an eligible use for funding.
Energy Efficiency and Conservation Block Grant Program (EECBG)
Large-scale program administered by the US Department of Energy (USDOE) designed to support state and local governments reduce fossil fuel consumption and improve energy efficiency. Formula awards and competitive grants can be used for a wide variety of projects, including solar lighting.
Safe Streets and Roads for All (SS4A)
A competitive grant program administered by the US Department of Transportation (USDOT) that provides ~$1 billion a year (2022-2026) to projects and plans aimed at reducing roadway fatalities and serious injuries (commonly referred to as Vision Zero initiatives). Lighting is listed as an eligible use for both Planning & Demonstration Grants and Implementation Grants.
Transportation Alternatives Set-Aside
A sub-allocation of the Surface Transportation Block Grant (STBG), Transportation Alternatives is the largest funding source for pedestrian, bike, and trail infrastructure in the U.S. Lighting is listed as an eligible use, and applicants are encouraged to consider “energy-efficient methods and options that reduce light pollution.”
Climate Pollution Reduction Grants (CPRG)
Administered by the US Environmental Protection Agency (EPA) and authorized by the Inflation Reduction Act (IRA), the CPRG program awards non-competitive and competitive grants to states, local governments, tribes, and territories to develop and implement plans for reducing emissions.
Carbon Reduction Program (CRP)
A formula funding program owned by the USDOT that provides funding for projects designed to reduce transportation emissions from on-roadway highway sources. It specifically lists “a project to replace street lighting and traffic control devices with energy-efficient alternatives” as an eligible funding use.
Solar Lighting as a Service (SLaaS) is a financing option that allows developers to avoid all upfront costs for a solar lighting project, including design, equipment, and installation.
These costs, along with maintenance, are instead packaged as a single, streamlined service, which is transferred to the HOA or CDD at the time of hand-over and billed on a monthly basis. Developers pay nothing and communities get years of reliable, sustainable street lighting.