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Clean energy tax credits are powering change across Appalachia

Solar panels on picnic shelters at Clawson-Burnley Park at the greenway in Boone, North Carolina. Photo by Jimmy Davidson.

By Sarah Dean

Energy cost-saving upgrades used to feel out of reach for many. Now, thanks to the clean energy incentives in the Inflation Reduction Act, they’re more attainable than ever.

Across the country, these tax credits have opened doors for schools, nonprofits, churches, and small businesses to lower energy costs, invest in local jobs, and build more resilient communities. Programs like direct pay, the Energy Communities Bonus, and the Low-Income Communities Bonus are especially helpful in places that have long been left out of clean energy conversations. This spring, Appalachian Voices released a report, titled Clean Energy Tax Credits: Working for Appalachia, on how these programs have specifically impacted the Appalachian region.

Highlighting these success stories is more important now than ever, as Congress is debating cutting these vital tax credits in order to pay for tax cuts to billionaires and polluters. The House passed a reconciliation bill in May that will drastically roll back the tax credits, and now it’s being considered in the Senate. If the massive reconciliation bill passes without changes, then many clean energy programs will be eliminated this year. The Senate wants to vote on the bill by the end of June. 

In recent months, we’ve spoken with folks across Appalachia who have put these tools to work. Here are some standout examples from West Virginia, Ohio, and Kentucky. 

West Virginia: Savings, skills and community impact

In a state known for its coal heritage, West Virginia is beginning a new chapter, and solar energy is playing a surprising role. Solar installations grew by more than 2,000% in 2024, fueled by expanded federal incentives.

Calhoun County Public Schools became the first district in the state to install solar through a no-upfront-cost agreement. Their solar arrays are expected to save $2.1 million over 35 years — money that will stay in the classroom. The project also launched a new solar workforce program to help students develop hands-on job skills. 

At Howell’s Mill Christian Assembly, a summer camp for kids and teens, solar panels have eased the burden of rising utility bills. Federal tax credits and grants covered half of the system’s cost. After saving $5,000 in the first year, they’re already planning to expand the project. 

In Beckley, Just For Kids Child Advocacy Center used IRA credits and community support to install a system that will supply nearly all their energy needs. The money they save on electricity can now go toward supporting vulnerable children and families.

And in Wheeling, the congregation at Lawrencefield Parish Church embraced solar after seeing the financial benefits. Their system is projected to save more than $77,000, savings that are already being reinvested into local outreach programs. 

These projects show how clean energy can meet real community needs, especially when the right support is in place. Read more about these cases and more in this report.

Ohio: Training the workforce of tomorrow

Founded in 1971, the Corporation for Ohio Appalachian Development is on a mission to improve the quality of life in Appalachian Ohio. Photo by Sam Reinhart.
Founded in 1971, the Corporation for Ohio Appalachian Development is on a mission to improve the quality of life in Appalachian Ohio. Photo by Sam Reinhart.

In Appalachian Ohio, the shift to clean energy is bringing new opportunities to both nonprofits and schools. 

The Corporation for Appalachian Ohio Development, a regional nonprofit, is using solar to cut costs and support essential services across its 17-member agency network. With help from the IRA credits and guidance from the Appalachian Solar Finance Fund, COAD is making solar more accessible while creating job training programs that prepare residents for work in the growing solar industry.

At the Tri-County Career Center in Nelsonville, students are learning about clean energy by living it. The school installed a 148-kilowatt rooftop system that will save an estimated $400,000 in electricity costs. At the same time, it provides students in the electrical trades program with real-world experience in solar installation and maintenance. It’s a smart investment in both education and the region’s workforce. Learn more about their stories here.

Kentucky: Smart investments in local institutions

Kentucky State Rep. Chris Fugate delivered opening remarks as BCFS’s new solar array was unveiled. Photo by Rance Garrison.

In Eastern Kentucky, local organizations are also putting IRA tax credits to work in powerful ways.

In Perry County, Buckhorn Children and Family Services Center was able to complete a solar project that had been stalled for years. With help from the federal tax credits and direct pay options, the organization installed a 27-kilowatt system expected to save nearly $189,000 over its lifetime. Those savings will be reinvested into mental health and addiction recovery programs for children and families. 

In Bell County, the city of Middlesboro installed a 63-kilowatt solar array at its community center, the first solar installation in the city. The panels are projected to cut pool energy costs by 80%, saving about $8,500 a year. Additional funding from The Nature Conservancy and the Appalachian Solar Finance Fund helped make the project possible with minimal upfront cost.

The Leslie County Animal Shelter took a forward-looking step by installing a 35-kilowatt solar-plus-storage system. The project is expected to save the shelter at least $5,000 annually and will help reduce peak energy costs through battery backup. It’s a small project with a big impact, helping a vital community service stay resilient and reduce expenses. 

These are just a few of the many projects that have taken root across the region. With continued support for clean energy tax credits, more communities in Appalachia can follow their lead to create jobs, cut energy costs and build a future that works for everyone.

Keeping these incentives in place means keeping opportunity within reach. But Congress is considering drastically cutting these in its massive spending and tax bill. As passed by the House in May, H.R. 1 would eliminate many clean energy programs this year, and make it harder for tax-exempt entities to partner with solar developers to do projects. Take a moment to tell your legislators to save these clean energy incentives!

Quenton King contributed to this blog. Read part 2 of this blog to learn about solar projects benefiting from the tax credits in North Carolina, Virginia and Tennessee!

AV's Intern Team

Every year, Appalachian Voices is fortunate to assemble a phenomenal team of rockstar interns from numerous Appalachian and East Coast universities. Enjoy these posts from our interns.

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