To get solar installed on your home in Rochester and receive the federal clean energy benefit through your 501(c)(3) before the end of 2025, you need to act quickly—both because local installers are at capacity and because the federal 30% solar credit expires after December 31, 2025 under the Big Beautiful Bill Act. Here’s how to do it efficiently and ensure your nonprofit qualifies for the “direct pay” refund option.mpowersolar+1
Determine Your Nonprofit’s Eligibility
Thanks to the Inflation Reduction Act, tax-exempt organizations—including 501(c)(3) nonprofits—can now claim solar incentives through Direct Pay (Elective Pay). Instead of taking a tax deduction (which nonprofits can’t use), the IRS issues a cash payment equal to 30% of the eligible project cost once the solar system is installed and operational.virtuesolar+2
To qualify:
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The nonprofit must own the system (not lease it). Leased systems disqualify you from the credit.ppm+1
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The system must be placed in service (fully installed and operational) by December 31, 2025.1sourcesolar+1
Apply for Elective Pay (Direct Pay)
After installation:
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File IRS Form 3468 and the Direct Pay pre-registration through your organization’s IRS Business Online Account.
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Once approved and the project is placed in service, you can claim a cash refund equal to 30% of your system’s total cost.eesi+1
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Requirements vary based on prevailing wage and apprenticeship standards—meeting them ensures full credit rather than the 6% base.ppm
Stack Local & State Incentives
New York has several strong solar benefits in addition to the federal credit:
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A state solar equipment tax credit up to $5,000, potentially rising to $10,000 under new proposals.palmetto+1
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Rochester Gas & Electric (RG&E) provides 1:1 retail net metering for any excess power produced.palmetto
Choose a Qualified Rochester Installer
You can accelerate installation by contacting top-rated Rochester installers familiar with nonprofit Direct Pay submissions. According to EnergySage and Palmetto rankings, the top local companies include :energysage+2
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GreenSpark Solar (Rochester-based, mission-driven)
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Palmetto Solar
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Infinity Energy
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SUNation Energy
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New York State Solar Farm
Steps to Complete Before December 31, 2025
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Request quotes immediately and select a reputable local installer (they’ll handle permitting and NYSERDA approvals).
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Sign a purchase contract—leasing disqualifies you from claiming the Direct Pay benefit.greenamerica
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Begin installation before early December 2025 to ensure “placed in service” status by 12/31.
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Retain all documentation: bids, invoices, and energy permits for IRS proof.irs
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Claim your Direct Pay refund through the IRS once commissioning documentation is received.
If you start this month, Rochester-area installers can still commission your system before year-end, allowing your nonprofit to receive the 30% refund and lock in New York’s additional incentives.
- https://www.mpowersolar.com/post/your-complete-guide-to-the-federal-solar-tax-credit-2025-new-york
- https://ppm.solar/federal-solar-tax-credit/
- https://www.virtuesolar.com/2024/06/01/can-nonprofits-claim-solar-tax-credits/
- https://www.irs.gov/credits-deductions/elective-pay-and-transferability
- https://www.eesi.org/papers/view/fact-sheet-direct-pay-for-nonprofits
- https://greenamerica.org/blog/solar-federal-credits-2025
- https://1sourcesolar.com/federal-solar-tax-credit/
- https://solarunitedneighbors.org/resources/solar-for-nonprofits/
- https://palmetto.com/local/new-york/rochester/
- https://solarunitedneighbors.org/actions/make-solar-work-for-all-ny/
- https://www.energysage.com/local-data/solar-companies/ny/monroe-county/rochester/
- https://greensparksolar.com
- https://www.irs.gov/credits-deductions/how-to-claim-a-residential-clean-energy-tax-credit
- https://www.irs.gov/credits-deductions/residential-clean-energy-credit
- https://www.energy.gov/sites/default/files/2024-05/Getting%20Cashback%20for%20Clean%20Energy%20-%20Renew%20America’s%20Nonprofits%20-%2005.21.2024%20(1).pdf
- https://www.cleanegroup.org/what-nonprofits-need-to-know-about-itc-2025/
- https://www.ecowatch.com/solar/best-companies/ny/rochester
- https://greenlogic.com/blog/2025-federal-solar-tax-credit-new-york-incentives-what-you-need-to-know
- https://votesolar.org/the-new-york-state-budget-fails-to-update-the-states-solar-tax-credit/
- https://www.epa.gov/green-power-markets/summary-inflation-reduction-act-provisions-related-renewable-energy