ImpactAssets and Partners Extend $12M Loan to High-Impact Residential Solar Provider PosiGen, Catalyzing the Energy Transition in Lower-Income American Communities
Financing partnership supports deployment of solar energy systems among historically excluded communities and communities traditionally reliant on environmentally harmful fossil fuels.
NEW YORK–(BUSINESS WIRE)–ImpactAssets, the impact investing trailblazer with a decade-plus track record of mobilizing capital for good, announced today that it is partnering with Connecticut Green Bank and Inclusive Prosperity Capital to provide a $12 million loan to PosiGen, a high-impact residential solar and energy efficiency provider focused on low- and moderate-income communities. The catalytic loan fills a crucial financing gap, enabling PosiGen to deploy thousands of solar energy systems and scale its transformative real-world outcomes across underserved regions of the United States.
The loan partnership comes as ImpactAssets, widely known for its deep impact investing expertise in the private market and its prestigious IA 50 list of impact investment fund managers, is mobilizing a growing volume of capital to address the climate emergency, leveraging philanthropy and impact investing to fill critical gaps. The PosiGen initiative aligns to multiple ImpactAssets climate finance imperatives by accelerating the adoption of renewable energy and ensuring that deployment is equitably distributed to all communities.
With this financing, PosiGen will deploy thousands of residential solar energy systems paired with energy efficiency upgrades in low- and moderate-income communities, reducing energy burdens for those customers while contributing critical progress toward decarbonization.
"This bridge loan is a prime example of ImpactAssets’ unwavering commitment to addressing the climate crisis with an urgent, holistic investment approach that centers climate justice,” said ImpactAssets’ Chief Executive Officer and Chief Investment Officer Margret Trilli. “Financing a just energy transition is one of our core impact objectives as we activate more and more capital for climate solutions. By supporting PosiGen's mission to democratize solar access in low-income communities, we are taking another crucial step towards a more sustainable, equitable future for all.”
Based in New Orleans, PosiGen offers a unique solar leasing model that removes barriers for low- and moderate-income homeowners, allowing them access to solar energy and energy efficiency while helping them achieve energy independence. Increases in energy prices disproportionately impact such households, as energy costs consume a much larger percentage of overall household budgets and can force difficult choices between paying electricity bills and buying food, medicine, or other essentials. PosiGen’s solar and energy efficiency model operates without restrictive income requirements or credit score minimums, which often prevent lower income populations from accessing solar energy solutions as easily as the more affluent.
The $12 million loan will instantly boost PosiGen's cash flow – enabling the immediate deployment of their solar energy systems and energy efficiency upgrades among underserved communities, while bridging the company toward additional funding in the future. The loan will assist in unlocking tax credits under the new federal Investment Tax Credit adders ("ITC adders"). The credits, expected to be awarded by the U.S. Department of Treasury within the coming year, will help attract additional private capital from tax equity investors.
"This bridge loan is essential in advancing our vision and scaling PosiGen’s impact during this interim period," said PosiGen CEO Ben Healey. “By partnering with ImpactAssets, Connecticut Green Bank, and Inclusive Prosperity, we are better equipped to empower more families with clean energy solutions that reduce their energy burdens, build energy resilience, and address the urgent climate challenges we all face, together.”
PosiGen has already delivered significant positive impact for low-to-moderate-income communities: The company has completed more than 25,000 solar energy systems and 20,000 energy efficiency upgrades for nearly 22,000 families, as of March 2023, serving a diverse customer base with 48% identifying as people of color. PosiGen customers have produced nearly 570,000 MWh of electricity and saved an estimated $66 million on their utility bills to date.
“The climate emergency is far too dire for renewable energy solutions to be concentrated among higher-income populations,” said Dana Cotter, Managing Director of Impact at ImpactAssets. “This collaboration with PosiGen reflects our deep commitment to investing with a climate justice lens, centering the communities who have contributed the least to the climate crisis but are disproportionately impacted by its effects. We are pleased to see community-centered approaches to climate solutions gain traction not only among impact investors and philanthropists, but also in private companies like PosiGen and even in the federal government, where initiatives like the Environmental Protection Agency’s Greenhouse Gas Reduction Fund are embedding equity and justice considerations. The climate emergency demands a broad, unified approach that marries climate action to community empowerment.”
“In Connecticut, through the Solar for All partnership, nearly 5,000 low-income families have been able to lessen the crushing impact of inflation and save millions on their utility bills in the face of rising energy costs,” said Bert Hunter, Executive Vice President and Chief Financial Officer at Connecticut Green Bank. “By working with partners like PosiGen, ImpactAssets, and Inclusive Prosperity Capital, the Green Bank continues to make a difference for our most vulnerable families.”
"IPC is thrilled to partner with ImpactAssets and Connecticut Green Bank to support PosiGen with tax credit bridge financing, unlocking capital right now to the benefit of families suffering high energy burdens,” said Kerry O’Neill, CEO of Inclusive Prosperity Capital. “This type of creative structuring for an innovative leader like PosiGen is exactly what is needed to ensure no one is left behind in the clean energy transition.”
ImpactAssets is an impact investing trailblazer, dedicated to changing the trajectory of our planet’s future and improving the lives of all people. As a leading impact investing firm, we offer deep strategic expertise to help our clients define and execute on their impact goals. Founded in 2010, ImpactAssets increases flows of money to impact investing in partnership with our clients through our impact investment platform and field-building initiatives, including the IA 50 database of private debt and equity impact fund managers. ImpactAssets has more than $2 billion in assets in 1,700 donor advised fund accounts, working with purpose-driven individuals and their wealth managers, family offices, foundations and corporations. ImpactAssets is an independent 501(c)(3) organization.
PosiGen is the nation's leading residential solar and energy efficiency provider for low-to-moderate income homeowners. Headquartered in Louisiana since its founding in 2011, PosiGen has served more than 25,000 residential customers in California, Connecticut, Louisiana, Mississippi, New Jersey, New York, Pennsylvania, Maryland, Massachusetts, and Washington D.C. The PosiGen family has more than 600 direct employees and supports many more through its subcontractor and channel partner relationships. PosiGen's Partner Program, which helps value-aligned partners offer PosiGen's best-in-class lease product, has helped another several thousand homeowners go solar since its inception in 2021. PosiGen stays true to its mission to make solar energy affordable for homeowners of all income levels, while helping customers achieve greater fiscal autonomy and energy independence through lower utility bills. Learn more about PosiGen's Solar for All mission at www.PosiGen.com