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up to $57 million in federal funds to provide microgrids to health centers in the rural Southeast

Announcement!

 The CHARGE partners along with Clean Energy Group 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). 


With the help of this award, the CHARGE Partnership along with Clean Energy Group (a national nonprofit that works to accelerate the transition to a sustainable, clean energy future) can offer health centers in the rural Southeast tailored design, financing, and installation of solar microgrids at a fraction of the cost.


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. This means health centers in the rural Southeast can install solar plus battery storage projects for a total discount of 70-100%. 

Why the Rural Southeast?

  •  Out of the 32.5 million patients health centers serve across the US, 1 in 5 live in a rural community
  • Americans in rural areas face numerous health inequities when compared to people in urban centers.​
  • Rural Americans are more likely to die from several chronic conditions and unintentional injuries, which are approximately 50% higher than in urban areas.​
  • In 2022, rural areas of the Southeast experienced 474 weather-related power outages–the highest number of any other US region.​
  • Extreme weather events are only expected to increase, leading to more power outages.​
  • Of the 783 sites, 636 (81%) were designated as disadvantaged and 275 (35%) were in Energy Communities that have historically been located near environmentally harmful industries ​

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  

Complete Intake Form

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. 

Complete Intake Form

Next Steps

  1. COMPLETE INTAKE FORM
  2. Sites selected on periodic basis  
  3. Project team will be in touch to talk system design, discount, benefits and cost to the health center 

Have questions about this program? Please email envhealth@nachc.org 


Not located in the rural Southeast but interested in learning more about microgrids and the programs available for your specific health center? Just fill out this form and we'll get back to you with information about your area.

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