WASHINGTON, DC (July 17, 2024) — Rochdale Capital and National Bankers Association Foundation today released a comprehensive report, A Turnkey Model for Leveraging Direct Pay to Advance Solar and Renewable Energy Finance, which provides insight into how measures like Direct Pay can make it financially feasible for under-resourced households and communities to engage in clean energy projects such as community and residential solar.
The report examines financial resources such as tax incentives and credits from recent federal legislation; the Inflation Reduction Act of 2022 (IRA) introduced several clean energy tax credits available to various entities, including businesses, tax-exempt organizations, state and local governments, and individuals. Among these, the elective pay provision, or Direct Pay, allows tax-exempt entities to receive direct payments for twelve clean energy tax credits. Rochdale and the Foundation enlisted the help of WeSolar, the first Black female owned community solar power company in the United States, to produce this guide to leveraging Direct Pay. In particular, the report showcases how Direct Pay empowers consumers, strengthens nonprofits and community organizations, and increases grid resilience for utilities. In addition, the guide provides practical implementation strategies of Direct Pay mechanisms for mission-driven lenders, including loan product development strategies, underwriting considerations, and more.
“As leaders in community development finance, Rochdale Capital and National Bankers Association Foundation are excited to unveil this report, focusing on leveraging 'Direct Pay' mechanisms to drive renewable energy initiatives,” said Kladé Hare Nersasian, Chief Loan Officer, Rochdale Capital. “This initiative is pivotal in expanding access to sustainable solutions, particularly in underserved communities. By empowering nonprofits and local entities, we aim to catalyze meaningful change, fostering a future where clean energy is accessible to all."
“We are passionate about equipping Minority Depository Institutions and other mission-driven lenders with the tools they need to be trailblazers in climate finance,” said Nicole Elam, CEO and President of the National Bankers Association. “We know that the communities we serve face significant climate vulnerability, but we are confident that resources like this guide will help our lenders address these challenges, while creating opportunities for household and community wealth-building.”
This report was made possible by the generosity of The Kresge Foundation as part of its ongoing tangible commitment to advancing climate equity.
Please read the full report: A Turnkey Model for Leveraging Direct Pay to Advance Solar and Renewable Energy Finance
Rochdale Capital Corporation
Rochdale Capital Corporation, founded in late December 2021, is a community development loan fund whose mission is the promotion of cooperative and community ownership; advancing equity, diversity, and inclusion; and providing equitable access to capital access in Black, Latino, Asian American Pacific Islander, and Indigenous under-resourced communities.
For additional information, visit https://www.rochdalecapital.org/
The National Bankers Association Foundation
The National Bankers Association Foundation is the nonprofit arm of the National Bankers Association (NBA), the leading voice for the country’s Minority Depository Institutions whose membership includes Black, Hispanic, Asian, Pacific Islander, Native American, and women-owned and -operated banks across the country. To continue the NBA’s support of MDIs, the nonprofit provides programs and services to support MDIs and the communities they serve to close the racial wealth gap. https://www.nationalbankers.org/foundation
WeSolar
WeSolar, established on Juneteenth 2020, is a MWBE & EEC certified solar developer with 8+ years of combined solar industry experience. As the country’s first Black-woman owned solar development firm, WeSolar specializes in developing commercial solar projects for community owned or operated entities, such as churches, grassroots nonprofits, and affordable housing developments, historically overlooked by institutional developers and financiers.
The Kresge Foundation
The Kresge Foundation was founded in 1924 to promote human progress. Today, Kresge fulfills that mission by building and strengthening pathways to opportunity for low-income people in America’s cities, seeking to dismantle structural and systemic barriers to equality and justice. Using a full array of grants, loans, and other investment tools, Kresge invests more than $160 million annually to foster economic and social change. For more information, visit kresge.org.
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Media Contact: John Holdclaw IV, President & CEO, Rochdale Capital Corporation, (202) 571-5148 or jholdsclaw@rochdalecapital.org