Hesston Mennonite Church Solar Project with Inflation Reduction Act Funding
by Ally Welty Peachey, ACC Advocacy Intern
Hesston Mennonite Church began the process of installing solar panels after an annual goal-setting meeting established the goal of reducing their carbon footprint. A carbon footprint is a measure of the total amount of greenhouse gasses produced by our actions and is measured in tons of CO2. The church formed a committee consisting of Nelson Kilmer (a retired Hesston College physics professor), Jim Yoder (a retired Hesston chemistry professor), Dave Wiebe (the church’s treasurer), and Gerry Selzer (a retired Hesston professor). In October of 2022, the committee began to draft a plan to install solar. When the plan was presented to the church, it was alongside proposals to address failing air conditioning units and to pay off the church’s mortgage. While there was some hesitation about the effect that solar panels would have on reducing the carbon footprint, the idea of fixing the AC units, and paying off the mortgage made the plan attractive to other members of the congregation that initially would not have donated to the solar project initiative.
The church began raising funds for the project, which was estimated to cost $320,000. Hesston Mennonite church received a grant from the Pam De Young Net Zero Energy Fund and an additional grant. The church has applied for a direct pay refund, under the Inflation Reduction Act, which covered 30% of the project’s cost. The Inflation Reduction Act (IRA) passed in August of 2022 included and expanded tax credits to nonprofit organizations for clean energy technologies. These provisions called “elective pay” or “direct pay” mean that for the first time, tax-exempt entities are eligible to receive payments for clean energy projects like solar.
In August 2023, the solar project was completed about ten months after the first committee meetings began. Hesston Mennonite’s solar system features a 128,400-watt system comprising 321 solar panels. This year Kilmer says the church will reduce their carbon emissions from 150 tons of CO2 to zero, meeting the initial goals of reducing the church’s carbon footprint. Annually the energy produced from the solar system will save the church approximately $24,000 on energy costs and an additional $25,000 in social costs of carbon The social costs of carbon reflects estimated environmental damages from carbon emissions. Alongside the successful implementation of the solar system, the church paid off its mortgage and addressed the failing air conditioning units. This has reduced expenses in the church budget allowing more money to be added to the church’s outreach budget.
When Nelson Kilmer was asked about what he wants people to know about the project and the IRA direct pay initiatives, he said “The IRA is really helpful” elaborating that it makes solar projects like this one accessible for non-profits, who in the past have not been eligible for this type of tax credit. Kilmer also notes that when local churches see other congregations implementing solar, they are inspired to do so themselves. Local congregations and retirement communities have consulted with Kilmer on their solar projects, and he hopes that others will take advantage of the IRA’s direct pay refunds to assist in their own solar projects.