US solar developer Pivot Energy has signed an agreement with technology giant Microsoft to develop 500MW of community-scale solar capacity across the US between 2025 and 2029.
Under the terms of the agreement, Pivot will develop and manage around 150 new solar projects across 20 states, while Microsoft will acquire Renewable Energy Credits (RECs) generated at the projects. The technology giant will use this electricity to match its customers’ electricity usage, as it looks to decarbonise both its operations and that of its customers; the company plans to more than halve its scope three emissions by 2030.
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“We believe the clean energy transition can and should benefit communities across the US that have been historically excluded from economic opportunity,” said Adrian Anderson, general manager of renewables and carbon-free energy at Microsoft.
“Through our work with Pivot Energy and with its commitments to driving community impact, this collaboration helps to build more inclusive, local economic growth across 100 communities while addressing the sustainability needs and opportunities within those communities.”
While Pivot did not specify the value of Microsoft’s investment, the deal will significantly expand the geographical footprint of the company’s operations. Pivot currently has community solar projects in operation in four US states—Colorado, Illinois, Minnesota and New York—and will now build new projects in Maryland and Ohio, two states which, according to the US Solar Energy Industries Association (SEIA), will add 11.5GW of new capacity over the next five years.
The news is Pivot’s latest investment in distributed solar, following the financing of 100MW of new distributed solar capacity in May, and Walmart’s investment into 19 of Pivot’s projects in March.
Radial Power acquires 22.3MW community solar portfolio
In other community solar news, renewable energy operator Radial Power has acquired a 22.3MW community solar portfolio from developer Galehead Development. The portfolio comprises four projects in the state of New York, and Radial will oversee the development and construction of the facilities.
While this arrangement covers a smaller capacity than that signed between Pivot and Microsoft, Radial’s new portfolio will benefit from a number of supportive laws in place in New York State. These include the Value of Distributed Energy Resources (VDER) programme, an initiative to incentivise distributed energy generation in the state by allowing a utility to assess the monetary value of the energy provided to a grid by an operator, and include this in the off-taker’s bill when acquiring power.
Community distributed generation projects, in particular, can benefit from this scheme further, by receiving Community Credits (CC) from the government. These are tax credits calculated on the basis of kilowatt-hour of electricity produced, and the ratio of money to electricity output is locked in for 25 years, protecting the projects’ tax breaks from fluctuations in power prices.
“This transaction highlights our shared dedication to providing thoughtful siting, real estate financing and development solutions to meet ambitious renewable energy targets,” said Galehead CEO Matt Marino. “We are thrilled to collaborate with Radial Power on the successful commercialization of this portfolio.”
Both of these deals follow increased attention on US community solar. Last week, Wood Mackenzie and the Coalition for Community Solar Access (CCSA) published a report into the sector, which found that the US could have as much as 14GW of cumulative installed community solar capacity in operation by 2029.
