FAQs

The Inflation Reduction Act (IRA) includes specific provisions and benefits aimed at supporting Native American tribes. Here are a few of the benefits:

Enhanced Federal Tax Incentives: The IRA enhances the Investment Tax Credit (ITC) for renewable energy projects, including solar, with potential higher rates for projects on tribal lands or those benefiting low-income communities.

Direct Pay Option: Tribes, which are typically non-taxable entities, can take advantage of the direct pay option. This allows them to receive the equivalent of the tax credit as a direct payment, making it easier to finance solar projects.

Dedicated Funding: The IRA allocates specific funds for energy projects on tribal lands. These grants can be used for the deployment of residential solar systems, providing upfront capital to reduce the financial burden on tribes.

Technical Assistance: Additional funding for technical assistance programs helps tribes plan, design, and implement solar energy projects more effectively.

Energy Justice: The IRA emphasizes environmental justice, ensuring that low-income and underserved communities, especially Native American tribes, receive priority access to clean energy funding and programs.

Community Solar Programs: Support for community solar initiatives allows tribes to create shared solar projects, enabling residents to benefit from solar energy even if individual home installations are not feasible.

Job Creation: Funding for job training and workforce development programs helps build the skills needed for solar installation and maintenance within tribal communities, creating local employment opportunities.

Economic Development: By fostering a skilled workforce, tribes can boost their local economies through new job creation and sustainable energy projects.

Grid Modernization: Funding for grid modernization and resilience improvements ensures that tribal lands can support new solar installations and manage increased renewable energy capacity.

Energy Storage: Incentives for energy storage systems complement solar installations, providing reliable and consistent energy supply, which is crucial for remote and underserved tribal areas.

Reduced Pollution: Solar energy reduces reliance on fossil fuels, decreasing air pollution and improving public health outcomes for tribal communities.

Sustainability: Promoting renewable energy aligns with many tribes’ commitments to environmental stewardship and sustainability.

Energy Independence: Solar installations can help tribes achieve greater energy independence and self-sufficiency, reducing dependence on external energy providers.

Revenue Generation: Tribes can generate revenue by selling excess solar power back to the grid through net metering or other programs, supporting economic growth and reinvestment in their communities.

Under the $7 billion “Solar for All” program, 60 selected community resources help distribute funds from the EPA Greenhouse Gas Reduction Fund program to create new or expand existing low-income solar programs, which will enable over 900,000 households in low-income and disadvantaged communities, specifically including Native American populations, to benefit from distributed solar energy. 

Collectively, these programs will deliver on the Greenhouse Gas Reduction Fund’s objectives by reducing greenhouse gas emissions and other air pollution, delivering cost savings on electric bills for overburdened households, and unlocking new markets for distributed solar in 25 states and territories that have never had a statewide low-income solar program before.

Earth-friendly and Reduction in Carbon Footprint: Solar energy is a non-destructive passive method to derive electricity. This process reduces reliance on fossil fuels, lowers greenhouse gas emissions and other air pollutants, and enables us to continue to respect our mother earth.

Sustainable Energy Source: Solar power is renewable and abundant, and does not destroy or deplete Earth’s natural resources.

Reduced Air Pollution: Solar energy generation doesn’t produce air pollutants or greenhouse gases.

Reduced Electricity Costs: In most cases the homeowner will enjoy reduced electricity rates as compared to traditional utility providers. For tribal homeowners, the initial cost of installation will also be eliminated.

Utility Fees Remain in the Tribe: The Solar Provider will typically be the tribe to which the tribal member belongs. Even if not the same tribe, it will be “a” tribe. Any utility fees paid for electricity used will remain with that tribe, instead of being paid to an external utility company.

Job Creation: In some circumstances, the tribal Solar Provider may establish new job opportunities for Solar Consultants, Maintenance Workers and others to support the solar energy system.

Initial Consultation: A Sovereign Energy solar consultant will visit the homeowner to assess their energy needs and evaluate their property.

Design, Proposal and Contract: A customized solar system design is created, and a proposal is prepared and presented to the homeowner by a Sovereign Energy solar consultant. Once the homeowner approves, they will enter a “Power Purchase Agreement” or “PPA”, with the tribal entity (aka Solar Provider) who is underwriting the cost of installation. Via this contract the homeowner commits that they will purchase their electricity from the Solar Provider.

Permitting: The necessary permits are obtained from local authorities where required.

Installation: The solar panels and related equipment are installed by a Sovereign Energy installation team. In some cases the solar energy system may also include a battery system for electrical storage.

Inspection and Approval: The system is inspected and approved by local authorities.

Activation: The system is activated. In some cases, the system may be connected to an existing utility grid through a process called “interconnection”.

Use and Maintenance: The way a homeowner uses electricity will not change. All existing electrical wiring will be connected to the solar energy system. Where a battery storage system is installed, the system should automatically cut over to the battery when needed. Regardless, the homeowner will be instructed in the use of this battery system. Should there be a need for repair or maintenance on any of these components, a dedicated service will be available.

Billing: Instead of paying their utility bill to an external utility company, the homeowner will be billed by the Solar Provider. The per-watt amount billed will normally be less than their current rate. Monies paid will typically remain within the tribe.

The first visits from the Sovereign Energy solar consultant will typically take less than 2 hours. The design, proposal and commitment process may take several days. Approvals and permitting may take several weeks. The actual time needed to physically install the panels on the home will typically only take 1-2 days. As a result, the entire process can take anywhere from 1 to 3 months, depending on factors like permitting, inspections, and the availability of materials and installers, etc.

The size of the solar energy generating system is determined based on historical energy consumption of the residents, roof size of the home, the geographic orientation to the sun, and shading. Well-understood solar algorithms are used by solar professionals to accurately determine the required size of a solar system. A detailed site assessment helps in creating an optimal system design.

Yes. To participate, the homeowner will sign a “Power Purchase Agreement”, often referred to as a “PPA”. Initial cost of installation of the system will be underwritten by a tribal entity (the Solar Provider) who will actually own the equipment. In the case of a PPA, the homeowner will commit that they will purchase the electricity they use from the Solar Provider. The homeowner will be billed by the Solar Provider and will pay for the electricity generated by the system at a set rate per kilowatt-hour, which may or may not have a long-term escalation clause (to address future increases in cost of living, etc.). All of this will be clearly explained before the homeowner agree to proceed, when the Sovereign Energy consultant visits with the homeowner.

In this circumstance, the Solar Provider (the tribal entity that underwrites the solar installation) will be responsible for maintenance and repairs. Often, but not always, they will hire a specialty maintenance company to perform these services.

The answer to this question varies depending on how the home is owned in the first place. Normally the new homeowner must agree to take over the PPA. Because electricity rates from the Solar Provider will be lower than alternative options, this will almost always be the case. If not, however, the homeowner may need to buy out the contract, or otherwise negotiate with the Solar Provider.

Net metering involves the use of a “two-way meter” that allows the system owner (in this case the Solar Provider, not the homeowner) to sell excess electricity generated by a solar system back to the grid. In this case, net metering will not likely factor into the situation.

The structural eligibility of each home will be confirmed by a Solar Consultant or other professional before proceeding with design or installation. If a home does not qualify due to the condition of the roof (or for other reasons), repairs or other resolutions may be necessary before installation of the solar energy generating equipment. The cost of any such repairs or other resolutions “may” be the responsibility of the homeowner. In some cases the Solar Provider may factor these costs into the PPA, eliminating the need for the homeowner to pay repair costs out of pocket.

Solar panels typically have a lifespan of 25-30 years, with most manufacturers offering warranties that cover performance for 20-25 years. If problems occur, the Solar Provider would be responsible for repair or replacement.