This food bank saved big with solar. GOP cuts could crush similar efforts.
When the team at Second Harvest Food Bank of Northwest North Carolina first started planning construction of a new headquarters in Winston-Salem in 2019, they seriously considered solar panels.
'Food banking at its core has always been about sustainability,' said Beth Bealle, Second Harvest's director of philanthropy, stewardship, and engagement. The organization rescues food that would have ended up in landfills to feed those in need, and Bealle and her colleagues wanted to push the sustainability concept 'in other aspects of our work — like our facility.'
But at the time, they were advised that a rooftop array would be too expensive. Second Harvest shelved the idea and moved into its gleaming new 140,000-square-foot building in a former R.J. Reynolds Tobacco industrial park.
'Fast forward to the Piedmont Environmental Alliance Earth Day Fair of April 2023,' Bealle said. That's where she met the alliance's new green jobs program manager, Will Eley, who asked, 'Did y'all know about the Inflation Reduction Act?'
Eley and Bealle 'hit it off fabulously,' she said. Together, they took the food bank's solar plan off the shelf and worked through the details of complying with the federal law's clean energy incentives. Two years later, on Earth Day 2025, Second Harvest and the alliance flipped the switch on a 1-megawatt array, one of the largest rooftop solar projects in the state.
Assuming promised refunds from the federal government materialize, the project is expected to save Second Harvest $143,000 each year, funds the group says will be reinvested directly into programs that provide food, nutrition education, and workforce development across 18 counties of Northwest North Carolina.
But with the tax rebates now on the chopping block in Congress, other organizations considering new facilities may not have the chance to follow Second Harvest's footsteps.
'We've already talked to several food banks who are in that process about our project, because they're interested in putting solar on the rooftops of their new buildings,' Bealle said. 'And that's not going to be within reach for some people if these tax credits aren't available.'
The federal government has long offered tax credits to incentivize renewable energy projects, from solar farms to rooftop arrays. But before the Inflation Reduction Act, those enticements were of little use to food banks and other entities that don't pay an income tax.
The 2022 landmark climate law allowed organizations like Second Harvest to access the 30% tax credit on their solar investment by essentially transforming it to a rebate.
'The process by which they were able to fully monetize the tax credits was quite the game changer,' Eley said.
In North Carolina, the provision known as 'direct pay' serves as a vital sequel to an expired rebate program from utility Duke Energy, which helped dozens of houses of worship and other nonprofits go solar during its five years of existence.
'Duke Energy had the nonprofit solar rebate, and that was a tremendous tool that was very helpful,' said Laura Combs, a one-time solar salesperson who worked with tax-exempt groups around the state to access the cash back from the utility. 'When the direct payment came into play,' she said, 'that took up that slack.'
The federal climate law also offers other inducements. It provides a 10% bonus to tax credits for projects deployed in government-defined 'energy communities,' including those on former industrial sites or brownfields. At least another 10% is available for clean-electricity projects that are located in or benefit low-income communities.
As an organization that serves food-insecure households and that is headquartered in a poor census tract on a brownfield, Second Harvest qualified for both of these extra incentives.
'We really maximized the clean-energy layer cake,' Eley said.
Altogether, the tax credits cut the $1.5 million price tag for the solar rooftop installation in half, Eley said. While the food bank had to pay the full amount up front and won't recoup those savings until it files its tax return for the year, the extra incentives mean the 1,702 solar panels will pay for themselves more quickly in the form of lower energy bills.
Second Harvest and Piedmont Environmental Alliance hoped the project would serve as a beacon to other nonprofits looking to go solar. And in and around Winston-Salem, that's starting to come true, Eley says.
'It's opened up several doors there,' he said, mentioning that a local credit union and groups like Goodwill have expressed interest in installing panels. 'We're presently working with six faith communities that are navigating [direct pay] and going through their feasibility and contracting processes for solar specifically.'
That tracks with a nationwide trend of houses of worship going solar thanks to the Inflation Reduction Act.
There's also been an uptick in nonprofit installations statewide, according to data compiled by the North Carolina Sustainable Energy Association.
The association doesn't monitor whether institutions access the direct-pay feature, and some recent arrays may be holdovers from the Duke rebate program, which ended in 2022. But the numbers are striking nonetheless: Since 2011, almost 150 houses of worship, local governments, and other entities that don't pay taxes have erected solar arrays, nearly all on rooftops. Sixty-three, or 42%, did so in 2023 and 2024.
Now, Eley said, the groups he's working with are especially motivated to act quickly.
'The idea of going solar has been something they have tossed around for a number of years,' he said. 'We're certainly reiterating to them if you're going to make that investment, do so now.'
That's because the massive budget bill passed last month by the House — dubbed the One Big Beautiful Bill Act in an homage to President Donald Trump — would make tax credits for solar and other renewable energy projects nearly unusable. The Senate is now considering whether to pass the measure as is or to make changes.
As the legislation stands now, projects would have to begin construction within 60 days of the bill's passage to access the 30% tax credit. That's an easier feat for a rooftop installation than a larger, ground-mounted affair, but still incredibly difficult for nonprofits, religious institutions, or local governments that tend to have lengthy decision-making processes and aren't already planning to go solar.
Even more unworkable is a provision that requires documentation that no component of a project, no matter how small, is linked to a 'foreign entity of concern' such as China.
While House lawmakers voted to make the underlying 30% tax credit virtually useless, they didn't explicitly target the three related adjustments that helped enable the Second Harvest project: direct pay, the low-income community benefit, and the brownfield benefit.
'These cross-cutting provisions are part of the tax credit structure, but they are their own mechanisms,' said Rachel McCleery, the former senior adviser at the U.S. Department of the Treasury who led stakeholder engagement for the climate law's implementation.
The survival of direct pay in the House measure stands in contrast to the elimination of its twin in the private sector, transferability, which allows smaller energy companies better access to incentives.
But direct pay means little if the baseline 30% tax credit is still hamstrung by the 60-day start-work requirement and the foreign-entity provision.
'This is backdoor repeal of the IRA,' said McCleery, who now advises clients on defending clean energy tax credits, 'and it's backdoor repeal of direct pay — because you can't use direct pay if you don't have an underlying tax credit.'
The same applies to the bonus incentives for low-income and brownfield communities. 'These cross-cutting mechanisms can still be used,' McCleery said, 'but if the underlying credit is moot, that essentially repeals the mechanisms.'
On the flipside, if the Senate restores the viability of the underlying 30% tax credit in its version of the bill, the mechanisms that aid nonprofits like food banks and houses of worship will also be accessible.
But advocates say that remains a big 'if.' And there are other challenges: Slashes to the Internal Revenue Service workforce could delay payments to Second Harvest and others. And the group is bracing for the impact of the other budget cuts in the House bill as written, such as to food assistance and Medicaid.
'It's just going to put pressure on people who are already under-resourced,' Bealle said. 'And that has a ripple effect to every organization that supports under-resourced people, including us.'
Combs, the former solar sales professional who also volunteers with climate advocacy group North Carolina Interfaith Power and Light, called it a 'tragic snowball.' She then brought up U.S. Sen. Thom Tillis, the North Carolina Republican who has consistently voiced disapproval of a full-scale repeal of the tax credits.
'Thank goodness Sen. Tillis has spoken out and been a leader on the importance of the Inflation Reduction Act incentives,' Combs said. 'I am anxious to see how this plays out in the Senate.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Boston Globe
an hour ago
- Boston Globe
Why rooftop solar could crash under the GOP tax bill
'This sets us back,' said Ben Airth, policy director for Freedom Forever, one of the country's largest residential solar installers. 'I've been in this industry 22 years and remember when it was only rich people, doomsday preppers and environmentalists installing solar panels on their roofs.' Advertisement One analysis by Ohm Analytics, an energy data firm, estimates that residential solar installations could fall by half next year if the House bill becomes law. Without the tax credits, it would take 17 years, on average, for homeowners to earn back their solar investments. A more pessimistic analysis by Morgan Stanley projects that rooftop solar demand could fall by 85 percent through 2030. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up While Republicans want to curb tax breaks for other renewable energy technologies like wind turbines and large-scale solar farms, the consequences for rooftop solar could be more severe. Rooftop solar can cost two to three times as much per unit of electricity as large solar arrays on farms or in deserts, and the residential industry is more vulnerable to shifts in subsidies. Advertisement The Senate is now writing its version of the domestic policy bill, and solar executives have descended on Washington to plead for a more gradual wind-down of the energy credits. They note that the solar industry employs roughly 300,000 workers and that rooftop systems can help homeowners cut their electric bills. Yet some conservative Republicans have made clear they oppose any restoration of tax breaks for renewable energy. 'Those God forsaken subsidies are killing our energy, killing our grid, making us weaker, destroying our landscape, undermining our freedom,' Rep. Chip Roy, R-Texas, said on the House floor last week. 'I'm not going to have it.' The uncertainty is upending an industry that was already struggling with tariffs and high interest rates. Last week, Solar Mosaic, which provided loans to homeowners to install rooftop panels, declared bankruptcy. On Monday, Sunnova Energy, one of the nation's largest rooftop solar companies, followed suit. Some experts say rooftop solar will eventually rebound, even without subsidies, if electricity prices keep rising around the country, which would make the economics of going solar more favorable. But the adjustment period is likely to be painful, with more bankruptcies and layoffs. 'We're not expecting residential solar to go away,' said Zoë Gaston, a principal analyst for residential solar at Wood MacKenzie, an energy research firm. 'But it will be smaller.' Major tax changes For two decades, Congress has offered tax breaks for people who put solar panels on their roofs. But Democrats supersized those subsidies in the 2022 Inflation Reduction Act, which plowed hundreds of billions of dollars into technologies meant to fight climate change. The law extended the residential solar credit, which allows homeowners to recoup 30 percent of the cost of a solar system they own, through 2032. It also expanded an investment tax credit for companies that build low-emissions sources of electricity like solar and batteries. Advertisement The latter change fueled a boom in solar leasing, in which homeowners don't have to pay the upfront cost of a rooftop solar system that can run $30,000 or more. Instead, a company owns the panels and keeps the tax credits. The homeowner leases the equipment from the company and ideally saves money through lower energy bills. More than 50 percent of home solar systems are now financed this way, and the rise of leasing has made rooftop solar more accessible to less-wealthy households, as well as to schools, hospitals and small businesses. The House Republican bill would terminate the residential solar tax credit by the end of 2025. And, in a last-minute change pushed by fiscal conservatives, solar leasing companies would be immediately ineligible for the investment tax credit. The House bill would also forbid companies from claiming the tax credits if they use components from China, which dominates solar supply chains. Because that provision is so broadly written, many companies say it would effectively make the credits unusable. 'Catastrophic is a fair way to describe the industry impact' of the House bill, said Gregg Felton, CEO of Altus Power, which develops solar projects on rooftops and parking lots. If Congress slashed support for renewable energy, experts said companies would continue investing in large-scale solar arrays, since even without subsidies those plants are often one of the cheapest ways to generate additional electrons. Rooftop solar, which is costlier and requires more labor, faces greater risks. Advertisement Kenny Pfannenstiel, the chief operating officer at Big Dog Solar, an Idaho-based solar installation company, said that rooftop solar has lately grown popular in newer markets like Montana and Idaho. 'We see a lot of interest from people who want to control their own energy future, or who worry about the grid being available when they need it,' Pfannenstiel said. Once the tax credits were expanded, he said, 'the economic argument for those customers to install solar and battery systems became a lot stronger.' If the credits vanished, some customers might still want panels, he said, but the market 'would shrink drastically.' The ripple effects could be significant. If solar leasing companies go bankrupt, customers could be left in the lurch, with no one left to service their panels. Thousands of installers and electricians would find themselves out of work. More than three dozen solar factories have opened in the United States in recent years, but some could shutter if demand slows. A debate over rooftop solar The fight over tax credits in Congress isn't the only challenge facing rooftop solar. While the technology remains popular with homeowners, some states have started pulling back support amid a barrage of criticism. Electric utilities and some analysts say that rooftop solar users raise costs for everyone else, because solar households pay less on their monthly utility bills but still rely on the broader grid for backup power. That shifts the cost of maintaining the grid to other households, which are often low-income. (Solar proponents disagree, saying that utilities ignore many benefits of rooftop panels, such as avoided transmission costs.) The fight has been especially fierce in California, the country's biggest rooftop solar market. In 2022, regulators slashed the compensation that new solar households could receive for the electricity they produce. In the months that followed, rooftop installations fell 85 percent statewide, straining installers, manufacturers and distributors. Advertisement Even now, some officials are looking to cut support further, including for existing homes. 'We have to reevaluate how our current solar subsidy programs impact Californians who may not be able to afford solar-panel systems,' said Lisa Calderon, a Democratic state lawmaker. The rise in interest rates has further squeezed the rooftop solar industry, by making it more expensive to borrow money to finance new installations. The Trump and Biden administrations also increased tariffs on solar components from China, which aids domestic manufacturers but makes panels more expensive. 'At some point our industry can and should be able to function without tax credits,' said Chris Hopper, co-founder of Aurora Solar, a software company that designs home solar systems. 'I do think we could get on board with a phase-down of these credits over an appropriate time period that gives us time to figure out how to find efficiencies and lower costs.' 'But an overnight change would be devastating,' Hopper said. 'It's just not possible to adapt that quickly.' This article originally appeared in .
Yahoo
2 hours ago
- Yahoo
Arizona's GOP delegation chose tax breaks for billionaires over clean energy jobs and public health
Photo by iStock / Getty Images Plus As a registered nurse with over 25 years of experience serving vulnerable communities across Arizona — in school clinics, long-term care facilities, and public health programs — I've dedicated my career to helping people live healthier, safer lives. I've worked with families struggling to find affordable care, seniors battling chronic health conditions, and children suffering from asthma worsened by air pollution. That's why I was deeply disappointed to see Arizona's Republican delegation in the U.S. House of Representatives vote in favor of what President Donald Trump is calling a 'big, beautiful bill.' There's nothing beautiful about it. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX This bill would add $3.8 trillion to the national debt in order to give massive tax breaks to billionaires — at the direct expense of hardworking Arizonans. Reps. Andy Biggs, Juan Ciscomani, Eli Crane, Paul Gosar and Abe Hamadeh shamefully supported this reckless plan, which guts essential programs that keep people healthy and safe. (Rep. David Schweikert slept through the vote, but said he would have backed it.) That includes slashing Medicaid and food assistance that countless Arizona families rely on. It also repeals clean energy investments made possible by the Inflation Reduction Act (IRA). These programs are creating jobs, improving air quality, helping combat Arizona's extreme heat and lowering energy costs for our communities. In just two years, the IRA has created nearly 19,000 clean energy jobs and generated $12.75 billion in investment for Arizona. These are real, tangible opportunities, especially in rural and underserved areas, where job growth and energy affordability are most needed. Rolling back these investments would halt progress, increase electricity bills, and eliminate job opportunities in Arizona's growing clean energy sector. This is particularly dangerous in a state like ours, where the climate impacts are not some distant threat, but our day-to-day reality. Arizona just experienced one of the hottest years on record, and extreme heat is now a leading cause of weather-related deaths. Seniors are especially vulnerable, and many already struggle to pay rising utility bills. Repealing clean energy incentives would worsen those burdens, put lives at risk, and raise energy costs by nearly $400 per household. Our summers are growing longer and hotter, and Arizona is home to some of the fastest-warming cities in the country. Heat-related illnesses have been increasing in tandem with these extreme events. This kind of heat can cause a range of serious health issues, from dehydration and exhaustion to life-threatening conditions like heatstroke. It also worsens chronic illnesses like heart and lung disease, which are common among older adults. Rising temperatures have also been linked to increased mental health challenges, including anxiety, depression, and even suicide. As extreme heat events become more frequent, health leaders and policymakers must take action now to protect both physical and mental well-being through informed, climate-resilient strategies. These clean energy investments are also key in reducing utility bills by making homes more energy-efficient and expanding access to affordable, clean energy. Through rebates, tax credits, and incentives for home upgrades such as insulation, heat pumps and solar panels, the IRA empowers families — especially those in low-income and historically underserved communities — to reduce their energy consumption and save money each month. As climate-driven extreme heat becomes more frequent and severe, adopting stronger building codes and fully implementing IRA programs are essential to building resilience, protecting vulnerable communities, and easing financial burdens for those most at risk After a lifetime of work, our elders deserve dignity, not heatstroke and financial insecurity. As older adults, we also have a responsibility to protect future generations. Our choices today will determine whether our grandchildren inherit livable communities or face even more deadly heatwaves and health crises. Arizona's decision-makers should be fighting for policies that protect public health, economic security and our environment, not handing out tax breaks to billionaires while our communities suffer. The 'big, beautiful bill' does exactly the opposite. It's an attack on the people I've spent my life caring for — families, seniors, and those most vulnerable to both economic and environmental injustice. We deserve better. Arizona deserves leaders who will put people over profits and prioritize a healthier, more just future for all. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
2 hours ago
- Yahoo
AESC halts construction on $1.6B battery cell facility in South Carolina
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Electric vehicle battery cell maker AESC is pausing construction of its $1.6 billion factory due to 'policy and market uncertainty,' company spokesperson Brad Grantham said in an emailed statement Tuesday AESC will evaluate market conditions and anticipates it will 'resume construction once circumstances stabilize,' Grantham added. 'AESC fully intends to meet our commitments to invest $1.6 billion and create 1,600 jobs in the coming years,' Grantham said in a statement. The project was initially announced in 2022 with a starting investment of $810 million. The investment increased as 'there were several project scope and size changes,' Grantham said. Construction on the facility began in 2023, according to the company's website. The Japan-based EV battery maker announced plans in 2024 to expand the Florence County, South Carolina, site. AESC said it was investing $1.5 billion to build a second facility that will service BMW's assembly operations in San Luis Potosí, Mexico, where the automaker will build the next generation of its Neue Klasse EV model beginning in 2027. However, AESC withdrew its plans for the second facility earlier this year, informing the state's Department of Commerce that it no longer has a fixed timeline for carrying out the project, according to State Fiscal Accountability Authority documents. The company concluded that it could meet its customer's demand with just one facility, Grantham said. AESC's project is a recent example in a series of stalled and canceled clean energy projects since President Donald Trump took office in January. Throughout his campaign and his second term, Trump has criticized the Inflation Reduction Act, which spurred a slew of clean energy project investments. Trump froze the legislation's funding for programs created by the IRA and ordered a review of the law when he came into office. While a federal judge temporarily reinstated the funding in April, the future of the IRA's lucrative tax credits remains unclear. Many of the credits were cut or phased out in the proposed federal budget passed by the House of Representatives last month. Companies have canceled or downsized more than $14 billion in investments and 10,000 new jobs in clean energy and clean vehicle factories between January and May, E2 reported last month. Cancellations included lithium battery maker Kore Power's cancellation of its planned $1.2 billion factory in Arizona and Stellantis's $3.2 billion EV battery facility in Illinois. Recommended Reading AESC investing $1.5B to expand South Carolina operations