Factors Potentially Affecting Costs

• Costs can likely be financed 100% through OPALCO's Switch It Up program, so Odd Fellows would be out no cash initially. Interest on the OPALCO loan is 3%. We are currently earning 3.5% on CDs or money market account at KeyBank.
• A monthly loan payment would be added to our electric bill.
• Under the Inflation Reduction Act (IRA), eligible nonprofits can claim a 30% federal tax credit for solar panel installations. Since tax-exempt organizations do not have tax liabilities, the IRS provides this incentive as a Direct Pay (or Elective Pay) program, meaning the nonprofit would receive the 30% credit as a cash refund. We are including this in our calculations below as a $13.5K credit at the end of the first year. (There is some time-sensitivity to this. See "Why Now Is the Best Time for Nonprofits to Go Solar")
• Electric rates are expected to rise 5-6% per year. Thus, the electricity produced by the panels becomes more valuable (in dollar amount) year by year. (See "Odds Rooftop Solar Breakeven Assuming 5% Annual Rate increase")
• Our metal roof will likely need to be replaced some time in the next 15-25 years. If it's 25, it doesn't enter into these calculations. If it's less than 25, the cost of removing and reinstalling the panels will probably be around $4-5K.