According to an annual study of U.S. nonprofits, 47% of respondents said they do not have the adequate funds to execute their programs and services in 2025 and 50% are concerned about their current financial situation. Yet many organizations overlook one of the most effective ways to cut overhead — a solution that’s literally on the roof over their heads: switching to solar power.

Aside from salaries, the cost of energy to power lights, heating, cooling and refrigeration is the highest operational expense for many synagogues, JCC’s and other Jewish nonprofits. Every dollar spent on power is a dollar that could otherwise support services and expand programming. While the upfront cost of installing solar panels may seem daunting, it pays for itself over time by reducing energy bills year after year.

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Illustrative. Solar panels.

And there’s no better time than now to make the switch. The Inflation Reduction Act included unprecedented federal solar incentives for nonprofits, houses of worship and schools. While those tax credits sunset at the end of the year, you shouldn’t let that stop your nonprofit from embracing what is now the cheapest form of energy available. 

Several years ago, before nonprofit solar incentives existed, Mitchell worked hard to get his Reform Jewish temple in Los Angeles to install solar panels. He was surprised to find the process so challenging, but the money folks at nonprofits tend to plan in five-year cycles and it often takes five to 10 years for the energy savings generated by solar panels to offset the upfront costs. 

His solution was to create the Jewish Solar Challenge, which shortens the payback period by offering direct matching grants to Jewish nonprofits willing to install solar and implement other sustainability measures. The results have been transformative, benefiting both the environment and the bottom line of the nonprofits we’ve supported. 

In the past three years, the Jewish Solar Challenge has helped synagogues, schools, Hillels and Jewish camps add $2 million worth of solar panels, preventing 1,272 metric tons of CO₂ emissions and saving grantees nearly $500,000 in annual electricity costs. And the impact has even gone global: The installation of solar panels on one Jewish community center in Tikvah, Uganda, provided the community’s first consistent source of power for Shabbat — which the community had previously conducted in the dark. 

As part of the grant application process, organizations must explain how they will advance long-term sustainability goals within their communities. Installing solar becomes a catalyst for other environmental initiatives, sparking conversations about stewardship and inspiring individuals to consider how they can reduce their own carbon footprint. 

Judaism teaches its adherents to be strong stewards of the Earth, so going solar is mission-aligned. Many nonprofit donors also want their grantees to adopt more sustainable practices, but there’s also a pragmatic financial reason for all Jewish nonprofits and their funders to opt for harnessing the power of the sun: Even without federal incentives, solar power is now the cheapest form of energy, with installation costs plummeting. Today’s panels cost less than half what they did in 2010, while producing nearly twice as much energy.  

Solar panels build critical financial resilience, stabilizing budgets and protecting programs as philanthropy dollars fluctuate. For funders, few investments deliver such concrete, long-term results: a one-time grant lowers costs for decades, all while multiplying impact.

The bottom line is clear: Even as incentives phase out, solar remains the most responsible energy choice – both morally and fiscally. Philanthropy has a role to play in accelerating this transition, whether by funding solar projects directly, championing sustainability among grantees or modeling the shift themselves. 

Act now to capture the best deal, but if you miss this window, remember: The sun keeps shining, and solar will continue to pay dividends — for your budget, your Jewish community and the planet.

Mitchell Schwartz is the founder of the Jewish Solar Challenge.  

Yosef Abramowitz is an entrepreneur and activist and serves on the board of the Jewish Solar Challenge.