Solar Sacrifice: How an Arizona Church Lost Money by Going Solar—and Solutions for When Energy Incentives Fail to Serve the Needs of Nonprofits

By policy design, consumers are supposed to save money when they invest in solar energy. This paper presents a case study of what happens when a church goes solar and the finances go wrong. Following the installation of solar-photovoltaic panels, the Arizona church—in the Valley of the Sun, among the sunniest places in the country—decreased its energy consumption, but its electric bills went up. Through oral-history interviews of key stakeholders, the author investigates what happened, and what could be done to prevent other religious institutions and nonprofits from experiencing the church’s fate.