Florida's Direct-Pay Opportunity Is Real. It's Just an Awareness Gap

Public entities and nonprofits across the country are claiming solar credits as cash through direct pay. In Florida, the bottleneck isn't interest. It's that no one told them.

Featuring Laura LaRosa, Florida Solar Energy Industries Association (FlaSEIA). Adapted from the SunSmart Engineering x Clean Energy Help x FlaSEIA panel, Commercial Solar in 2026. Watch the clip: "11 - Florida's Direct-Pay Awareness Gap.mp4".

A city, a county school district, or a local nonprofit can benefit from the solar tax credit even though it pays no taxes. Direct pay changed that math, and a lot of people in Florida still don't know it. Laura LaRosa of FlaSEIA set out to answer a basic question: are Florida's public entities and nonprofits actually using the tool? Her finding is that the tool exists, organizations nationwide are using it heavily, and Florida has a lot of room to catch up.

Direct pay, in one paragraph

Direct pay, formally called "elective pay" under IRA §6417, lets tax-exempt entities like governments, schools, and nonprofits receive the value of the clean-electricity investment credit (48E) as an actual payment, even though they have no tax liability to offset. The mechanics, paperwork, and timing get their own article in this series. The point here is that a credit that used to be worthless to a tax-exempt organization now comes back as real dollars on a solar project. That's what makes public and nonprofit solar pencil out in 2026.

The national picture: 600 and counting

Laura wanted hard numbers, so she went and found them. "I did a little research, I wanted to see what the numbers looked like nationally," she said. "Over 600 state and local governments nationally have already filed for elective pay."

That isn't a pilot program or a handful of early adopters. More than 600 filings from state and local governments tells you the process works, the IRS is processing claims, and entities that look a lot like Florida's cities, counties, school boards, and utilities are already putting credits to work. Set that activity next to how rarely the subject comes up in Florida conversations and a gap shows up. Laura is clear about what's behind it.

"What I think is happening in Florida is more of an awareness gap than a lack of interest," she said. "There are so many great opportunities, but maybe these organizations aren't aware of it."

That distinction matters. An interest problem is hard to fix because you're trying to change someone's mind. An awareness problem is the easy kind. The demand is already there, the projects make sense, and the only missing piece is someone in the room asking, "Did you know you qualify for this?"

The contractor's job: don't assume they know

This is where contractors come in, and Laura's advice is blunt. "If you're a contractor working on one of these projects with your clients, don't assume they know, bring it up."

It's tempting to figure a county facilities director or a nonprofit executive director has already heard about direct pay. Plenty haven't. Those 600-plus filings are clustered among organizations that happened to have someone, often a contractor or a consultant, point out the opportunity. So treat direct pay as a standard line item with your public and nonprofit clients, the same way you'd raise interconnection limits or roof condition. Bringing it up costs you nothing, and it can be the difference between a project that dies on budget and one that gets funded.

A few practical ways to work it into your pipeline:

• Raise it on every public or nonprofit lead. Cities, counties, school districts, universities, churches, and 501(c)(3)s are all candidates. Make the question routine.
• Frame it as money back, not a tax concept. Tax-exempt decision-makers tune out the phrase "tax credit." They tune in when you say they can receive a payment for a meaningful share of project cost.
• Be the connector, not the tax expert. You don't have to master §6417 to open the door. You just need to know enough to start the conversation and pull in the right partner.

"It's complicated" doesn't kill the deal

The objection you'll hear most from a public or nonprofit client is that the process sounds complicated. Laura's answer is that handling complexity is exactly what partners are for. "Even if they think it's a complicated process," she said, "that's why you've got Clean Energy Help or other organizations who can walk them through it."

That's the playbook. You don't carry the filing on your own. Clean Energy Help, the Tampa-based consulting firm that was supporting roughly $750 million in clean energy projects nationwide at the time of the webinar, does this work every day. FlaSEIA, which has advocated for and supported solar in Florida since 1977, connects contractors and clients to the right people. Your job is to surface the opportunity and loop in a partner who can walk the client through elective pay. Theirs is to run the mechanics.

Key takeaways

• Direct pay (elective pay, §6417) lets tax-exempt governments, schools, and nonprofits receive the value of the 48E credit as a payment, turning a credit they couldn't use into real money.
• Per Laura LaRosa's research, over 600 state and local governments nationally have already filed for elective pay, which tells you the process works and is being used widely.
• Florida's slow uptake is an awareness gap, not a lack of interest. The demand is there; the information isn't reaching decision-makers.
• Bring up direct pay proactively on every public and nonprofit lead. Don't assume the client already knows.
• When clients worry it's complicated, lean on partners like Clean Energy Help and FlaSEIA to guide them through it.

How SunSmart Engineering can help

SunSmart Engineering provides full-service engineering for solar and storage on public, nonprofit, and commercial projects: the stamped plan sets, interconnection design, and technical support that turn a direct-pay opportunity into a buildable project. We work alongside partners like Clean Energy Help and FlaSEIA, so your client gets both the engineering and the incentive guidance in one coordinated effort. Visit sunsmartengineering.com or call 866-786-8655.

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Educational information only, not tax, legal, or engineering advice. Rules referenced (credits, FEOC, safe-harbor litigation, and the July 4, 2026 and December 31, 2027 dates) were current as of the June 2026 webinar and continue to change. Confirm current requirements with a qualified professional before acting.