Reviewed by: Sharron Swain
How one Alabama nonprofit captures power from the sun
Reading time: 8 minutes
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In January 2024, Living River will become one of the first church camps in Alabama to be powered by the sun. Rev. Rachel VanKirk Mathews told us why the Presbyterian Church (U.S.A.) decided to blaze this trail. Keep reading for their story and to learn how other local churches, schools and local governments can follow in their footsteps.
Meet Living River: a church camp focused on nature + good stewardship
Living River is a 440-acre summer camp and retreat center in Shelby and Bibb Counties owned by the Presbyterian Church (U.S.A.).
This beautiful camp shares 4.5 miles of shoreline with the Cahaba River—one of the most biodiverse rivers in North America and one of the last free-flowing rivers in Alabama.
About 20 years ago, The Presbyterian Church (U.S.A.) in Central Alabama bought the land where Living River now sits, according to Rev. Rachel VanKirk Mathews, Assistant Director for Development at Living River.
After spending a decade building the facilities, Living River opened for environmental programs, retreat groups and summer camps in 2014.
“Because we’re on the Cahaba, we get to teach about biodiversity and its importance. That’s such a gift to us. Coming out to Living River is a great opportunity for people to remember with gratitude, humility and wonder that they are a part of creation.”
~ Rev. Rachel VanKirk Mathews
Why solar power?
For years, Living River’s Executive Director, Jenny Thagard, wanted to install solar panels on the campus, seeing it as an opportunity to be a good steward of both donations and of the environment.
Thanks to a designated gift from First Presbyterian Church in Wetumpka, the recently-completed solar power system will do just that.
“Placing solar on our dining hall roof is a testament to the many people of faith in Central Alabama—including our board and the members of First Presbyterian Wetumpka—who believe that creation is a gift and we should take care of it responsibly.”
~ Rev. Rachel VanKirk Mathews
Here are some highlights of the installation:
- 64 solar panels
- $6K+ expected power bill savings in the first year
- $200K power bill savings over the next 25 years
- 40,000 kWh expected generation in the first year—enough to charge 3.4 million smartphones a year
- 8 years for the solar power system to pay for itself with savings + incentives
- 650 tons of CO2 to be offset by the solar power system in the next 20 years—comparable to planting over 9,000 trees
Rev. VanKirk Mathews hopes Living River will serve as an example, showing that solar power can work for nonprofits in Alabama.
“Living River is proud that environmental consciousness has been a part of our mission since its beginning. We hope other churches and nonprofits will follow.”
How churches, nonprofits + schools are affording solar projects of their own
In Central Alabama, organizations including the Birmingham Housing Authority, The Altamont School, the UAB Solar House and St. Mary’s Episcopal Church in Jasper all run partly on sunshine.
A Birmingham-based company, Eagle Solar and Light, (ESL) installed the system at Living River. According to ESL Founder and CEO Sam Yates, “A moderate-sized solar power system costs approximately $225K and can save an organization $20-25K in energy costs each year.”
That’s a lot of dough! Fortunately, there are options to help offset or remove the significant upfront cost. We’ll look at two of these below.
1. Direct Pay: Available in Alabama and across the U.S. now
The Inflation Reduction Act of 2022 made nonprofits and government agencies eligible for direct payments of up to 30% for solar equipment through Direct Pay. This opportunity became operational in 2023 and will be in place for the next 10 years for nonprofits throughout Alabama and the U.S.
In addition to the other funding they were able to secure, the Living River plans to apply for Direct Pay funds to help stretch its limited dollars.
See the illustration of how Direct Pay works below.
2. Third-party Ownership—not currently allowed in most of Alabama
Exceptions include territories run by TVA (Tennessee Valley Authority) and some rural electric coops.
Third Party Ownership has emerged as one of the most popular methods of solar financing where investors own and operate the solar equipment on behalf of its ‘host’, in this case nonprofits. Terms for using the power generated and/or selling the power to the local utility are spelled out in the agreements.
Yates, of ESL, believes Alabama has an untapped opportunity to increase solar usage in the nonprofit sector. The majority of ESL’s business is now coming from North Carolina nonprofits where Third Party Ownership has helped to grease the skids for solar.
There are a couple of ways Third Party Ownership has been utilized in nearby states.
Mississippi creates revenue for schools
Just next door, the state of Mississippi has created an innovative program called Solar for Schools using Solar Power Purchase Agreements.
By encouraging solar panel placement at schools, this program creates a decades-long revenue stream that provides direct benefits to education in the state.
Here is how the Mississippi Public Service Commission defines the program:
“The Solar for Schools Agreement is a contract that reflects the Public School District’s selection of a Third Party Solar Developer to construct, own and operate a solar generating facility and establishes the agreed-upon revenue disbursements from the electric utility to the Public School District and the Third Party Solar Developer.”
Yates provided additional details about how it works in practice:
“Mississippi schools have scored big with a new energy opportunity. A recent policy allows any of the state’s 90+ county school districts to partner with developers for solar power systems.
The systems, which generate energy that is then sold to utility providers like Mississippi Power Company and Entergy, brings revenue to schools for 25 years under a Power Purchase Agreement.
With no upfront cost, schools can receive significant annual funds—potentially enough for larger school systems to hire extra teachers.”
North Carolina is transforming its clean energy
Made legal in 2017, solar leasing “played a pivotal role in transforming North Carolina’s clean energy economy,” according to the North Carolina Sustainable Energy Association.
Here’s how it works:
- A developer purchases solar equipment and installs it on the nonprofit’s property.
- The nonprofit then leases the equipment from the developer generating their own energy, which means they don’t have to buy as much power from the utility.
“Solar leasing allows nonprofits to avoid having to front the costs of solar equipment and installations. Instead of paying all that money for a solar system outright, the church, school or local government can pay a much smaller fixed amount for the solar equipment over the lease term, making solar energy more affordable and accessible to all.”
~ Sam Yates, Founder & CEO of Eagle Solar & Light
While companies own and operate the leased equipment, nonprofits benefit from clean energy and monthly savings on their electric bill.
What can local nonprofits do?
Although third-party agreement models are common in neighboring states like Mississippi and North Carolina, they are currently prohibited throughout most of Alabama.
If you’d like to see these options made available in Alabama, contact the three members of the Alabama Public Service Commission — Twinkle Cavanaugh, President (twinkle.cavanaugh@psc.alabama.gov or 334-242-5297), Jeremy Oden (Place 1) and Chip Beeker (Place 2) and ask, “If Mississippi and North Carolina can do this, why not Alabama?”
Next up in the series: how to implement your own solar power system
In our first installment, we examined why Alabama-based Milo’s Tea Company’s Bessemer factory decided to go solar.
In this edition, we learned how a local Presbyterian Church camp is leading by example and using the sun to power its facility, plus how others could do the same.
Stay tuned for our third and final story, which shows you step-by-step how to implement a solar energy system at your home, business, church, school or community.
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