For Google, REI and others, dimension is not all the pieces in clear vitality offers

Google, Intuit, Microsoft, Patagonia, Rivian and REI are amongst a rising variety of corporations for which the capability of a renewable electrical energy venture isn’t an important decision-making metric for signing a contract.

All six corporations are negotiating offers geared toward bringing inexpensive vitality to locations the place renewable electrical energy is scarce and different components, together with excessive poverty ranges, have made it tough for shoppers to put money into vitality effectivity measures reminiscent of dwelling weatherization or up to date HVAC methods.

For instance, Microsoft disclosed a multi-year deal Feb. 25 to convey 100 megawatts of photo voltaic electrical energy to twenty communities over the subsequent 4 years with an preliminary concentrate on Louisiana and Arkansas. That is the tech large’s second transaction with Clearloop, a Nashville, Tennessee, firm increasing solar energy in underserved areas the place tasks have a better affect on grid decarbonization and likewise present a constructive financial affect.

Clearloop makes use of a venture financing strategy that lets firms buy the environmental attribute certificates of utility-connected tasks in areas the place renewables penetration is low, mentioned Clearloop Co-founder and CEO Laura Zapata. 

“If the federal government is just not going to make some of these investments, possibly the personal sector will,” she mentioned, describing the corporate’s origin story. Considered one of Clearloop’s co-founders and angel buyers is former Tennessee governor Phil Bredesen, who additionally co-founded Silicon Ranch, the photo voltaic developer that acquired Clearloop in October 2021.

Central theme: group resilience 

Clearloop prioritizes smaller tasks — usually about 5 megawatts, or sufficient to energy 1,000 houses. A key promoting level in rural communities is the flexibility of distributed photo voltaic methods to maintain communities on-line throughout broader grid outages, Zapata mentioned. That helps get tasks permitted and usually producing energy in underneath one yr. “Deploy, deploy, deploy is the secret proper now,” she mentioned.

One other developer successful offers with high-profile firms is Sol Programs, an unbiased energy producer in Washington, D.C., that manages 7 gigawatts of fresh vitality tasks in 38 states. It has publicly disclosed offers with Google, Microsoft, Patagonia and Rivian, to call just a few. 

Each Clearloop and Sol prioritize low-income communities with excessive irradiance. Investments typically include employment alternatives, investments in native colleges and different actions deemed necessary by native residents. 

“You may nonetheless use these tasks to implement your targets, nevertheless it’s not nearly merely extracting the advantages,” mentioned Adaora Ifebigh, senior director of group affect at Sol Programs. “If you wish to be there and present that you simply’re going to be there, it’s essential take into consideration issues in another way.”

Contemplate Sol’s relationship with Google, which in mid-March pledged one other $1.6 million (doubling a earlier funding). That cash funds grants at rural electrical cooperatives in North Carolina and South Carolina for vitality effectivity upgrades and different enhancements that cut back vitality demand and prices.

Supply: Clearloop

Demonstrable affect for low-income shoppers

“[The relationship] instantly reduces the vitality burden on our members — significantly throughout excessive climate months — with out the crimson tape that usually comes with different funding sources,” mentioned Kevin Myers, supervisor of selling for the Santee Electrical Cooperative in Kingstree, South Carolina. “It’s not about coverage; it’s about individuals.”

Santee is one in every of a number of organizations that receives funding enabled by the Google deal. The co-op, which can obtain $200,000 on account of the brand new funding, has funded upgrades at 76 houses over the previous two years, together with weatherization enhancements and installations of warmth pumps.

The homeowners of those houses typically don’t qualify for present packages as a result of they don’t have an satisfactory credit score historical past or they lease the land the place their house is located — which is a deal-breaker in some areas, Myers mentioned. “These funds could be utilized on to the [customers] who want this absolutely the most,” he mentioned.

Contemplate local weather, conservation and group

Electrical car maker Rivian opinions group improvement prospects as a part of all its renewable vitality investments. Different components: how a venture can cut back emissions on an in any other case soiled grid and whether or not the venture will trigger habitat destruction. (Try its guidelines.)

For instance, Rivian teamed up with Patagonia and Sol to again a 50-megawatt venture in Stokes County, North Carolina. The funding supported an area robotics program for middle-school college students.

Rivian’s renewables technique goals to offset the affect of its manufacturing and add sufficient clear vitality capability to the grid to help 7 billion miles of carbon-free driving. 

“We’re in search of tasks that may end result within the biggest potential to negate fossil fuels,” mentioned Andrew Peterman, director of superior vitality options at Rivian. “We actually take into consideration how we drive grid transformation that’s about greater than decarbonization.”

For instance, Rivian backed Clearloop’s work in Tennessee as a result of photo voltaic technology accounts for lower than 1 % of the electrical energy there. Rivian is working with Clearloop so as to add sufficient solar energy to serve charging stations throughout the state, Peterman mentioned. “There are sustainability outcomes, nevertheless it’s actually about enabling the system,” he mentioned.

Let the group lead

Software program agency Intuit additionally collaborates with Clearloop. Along with REI, it backed a 2.8-megawatt photo voltaic set up in White Pine, Tennessee, that may energy at the least 400 native households and likewise present zero-carbon electrical energy for REI’s close by distribution middle.

“We now have by no means put a restrict on tasks like this, nevertheless it does come right down to scope — not solely simply the clear vitality element but in addition whether or not it creates co-benefits,” mentioned Debbie Lizt, head of world sustainability at Intuit. “We wish to use the sources that we’ve got to have a constructive affect.”

Intuit research financial affect potential as a part of its venture choice standards — in accord with its company mission assertion to “energy prosperity world wide.” It prioritizes areas the place electrical energy additions can cut back utility prices, present publicity to new applied sciences and probably create apprenticeship alternatives. 

In contrast to another corporations supporting small group photo voltaic tasks, Intuit doesn’t depend the renewable vitality certificates they generate in the direction of its emissions discount targets. Relatively, it donates them to the group. “That is necessary work to do even when it doesn’t serve our direct pursuits,” Lizt mentioned.