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This guide outlines the Renewables Investment for Social Equity (RISE) model, which enables tax-exempt entities to use the IRS 'direct pay' (elective pay) mechanism to deliver affordable solar energy to low- and moderate-income (LMI) households. The model allows tax-exempt organizations to own solar systems, install them at low or no upfront cost for residents, and recover costs via the Clean Electricity Investment Tax Credit (ITC).

This policy brief by RMI argues that the current design of the residential solar investment tax credit (ITC 25D) creates inequities by benefiting high-income and White residents while excluding low-and moderate-income (LMI) households who lack sufficient federal tax liability. RMI advocates for Congress to transition ITC 25D to a 'direct pay' model, similar to proposed provisions for business- and utility-scale renewables, to lower upfront costs, reduce energy burdens, and stimulate job growth in LMI communities.