Overview
NACHC and partners have been awarded a Cooperative Agreement through the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) for up to $57 million in federal funds to provide solar microgrids to health centers in the rural Southeast (HHS Region IV). This funding is expected to cover up to 70% of the costs for solar and battery systems at health centers and can likely be combined with Inflation Reduction Act (IRA) direct pay rebates for even greater savings.
The IRA may be coupled with the OCED Cooperative Agreement to allow health centers to receive up to 30% in direct pay rebates for solar plus battery storage projects, for a total discount of 70-100%. Read more about the IRA here.
About Solar Microgrids
Solar microgrids are a reliable source of power that can stabilize monthly electricity costs and help health centers continue operations during grid outages and emergencies. Solar and battery storage bring health centers energy independence.
Photos by: Collective Energy
About the Cooperative Agreement Partners
The CHARGE Partnership is a collaboration between three mission-driven organizations: The National Association of Community Health Centers, Collective Energy, and Capital Link. The partnership offers health centers tailored design, financing, and installation of solar microgrids. In this cooperative agreement, we are also collaborating with Clean Energy Group (CEG), a national nonprofit that works to accelerate the transition to a sustainable, clean energy future.
Project Partners
NACHC
The National Association of Community Health Centers (NACHC) was founded in 1971 to promote efficient, high quality, comprehensive health care that is accessible, culturally and linguistically competent, community directed, and patient centered for all.
Collective Energy works with critical health facilities to identify energy goals, designs bespoke power solutions based on site-specific needs, and installs solar + storage systems with trusted partners to save health centers money while ensuring they can continue to operate during grid outages.
Capital Link is a national, non-profit organization that helps community health centers and Primary Care Associations (PCAs) plan for sustainability and growth, access capital, improve and optimize operations and financial management, and articulate value.
Clean Energy Group (CEG), a national nonprofit that works to accelerate the transition to a sustainable, clean energy future.
Health Center Participation & Selection
Health centers may submit an application form (up to three sites) to participate in this initiative. Applications will remain open and rolling until funds have been allocated. The following criteria will be utilized to prioritize sites:
- Site(s) located in HHS Region IV (Region IV serves the Southeastern region, which includes eight states – Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee – and six federally recognized Tribes)
- Located in a rural city, town or census designated place with less than 10,000 people
- Willingness to contribute 30% of cost of solar panel and battery system for cost share (more information below)
- Site(s) located in areas prone to power outages
- Site(s) that have limited or lack reliable source of back-up power
- Site(s) in primary care shortage areas
Benefits & Expectations
Health centers are eligible for 70-100% off the cost of a solar microgrid.
To be eligible for this program, health centers are asked to contribute up to 30% of the solar microgrid system investment.
The 30% contribution will cover a portion of costs, including planning/completing the solar microgrid installations and program costs.
After microgrid projects are completed, health centers may be eligible for a 30% tax rebate on solar microgrid investments through the IRA Investment Tax Credit and recoup the initial expense of the project.
Project partners are available to assist health centers in planning for this contribution through deposits or financing the health center contribution.
Further, the project partners will also be able to project long-term savings to the health center.
Example:
Below is an illustrative example of a $500,000 solar microgrid system that is eligible for a $150,000 IRA rebate. (It is estimated that the total costs of most microgrid systems at health centers will be between $500,000 to $1,000,000.)
- Participating health center would invest their estimated IRA rebate up front as the match.
- $150k ($75k at signing agreement, $75k at start of installation) or financed 100% with interest and principal paid upon receiving IRA rebate.
- Through the OCED agreement, the health center will receive $350K toward the microgrid system.
- Once system is installed and activated, the health center may be eligible to submit for the IRA rebate of $150K if rebate program continues.
- If the IRA rebate does not continue, the health center will still receive a solar microgrid at a 70% discount.
Questions? Contact Us
Next Steps
- Sites selected on periodic basis
- Project team will be in touch to talk system design, discount, benefits and cost to the health center
Have questions? Please email [email protected]