25. Putting Climate Change & Inequality on the Ropes
Massachusetts Bankers Association’s 2021 Renewable Energy Summit
Solar: Climate Change & Inequality
In December, at the Mass Bankers Association 2021 Renewable Energy Summit, Community Bank Champions discussed the relationship between equity and the ongoing clean-energy transition.
The solar industry is providing economic opportunities, but the benefits are not being distributed fairly across communities and income levels. A study conducted by Tufts found that for the same median household income, LMI communities had 69% fewer rooftop solar installations than affluent communities.
Melanie Santiago-Mosier, Deputy Director of Clean Energy States Alliance, describes this phenomenon, “The (solar) industry’s problem is that of employment and deployment… it is trying to play within a system that is built on structural inequity.” Melanie calls for both solar investors and developers to think holistically about how to change the system.
Access to capital is one of the primary barriers standing between low-income communities and clean-energy access. Through solar tax equity and solar lending, community banks can put inequality on the ropes-- putting capital to work in LMI communities.
Solar on Caritas Communities Low-Income Housing Rooftop - Dorchester MA. — Needham Bank’s Capital Put to Work By Sunwealth
“We can save the planet with equity in mind.”
-Malia Lazu, CEO & Founder of The Lazu Group
Malia Lazu has much to contribute to the topic of equity. In her prior role as EVP and Regional President at Berkshire Bank, Malia worked to generate wealth for communities by expanding access to capital and spurring economic growth.
Malia Lazu
When asked about environmental justice, Ms. Lazu said, “Exploited communities remain the most vulnerable to climate change.” She concludes, “Including diverse communities in the energy transition will ensure long term success.” Addressing equity, as Ms. Lazu suggests, involves centering the community voice in the process of generating a preferred return.
“I get most excited about capturing the economic benefits in our local communities.”
- Robert Terravecchia, President & CEO of Coastal Heritage Bank
With significant amounts of capital to deploy, community banks like Needham and Coastal Heritage can do solar deals that apply an economic inclusive lens and brings the benefits of solar to ALL communities. Mr. Terravecchia exults, “From the equity standpoint, what Sunwealth does is terrific.” One example is Sunweath’s investment in the largest community solar project in New York City, which helped spark training and jobs for New York City Housing Authority (NYCHA) residents.
Solar Installed on Buildings Across Queensbridge North and South Public Housing
Mr. Daley, SVP & Director of Structured Finance at Needham Bank, agrees with his banking peer, “As a bank, you can promote your solar investment and feel good about it.” Coastal Heritage and Needham Bank trust Sunwealth to put their money directly to work while democratizing the way we invest in renewable energy.
If you’re interested in democratizing solar and learning more about Sunwealth, please contact Darreck Mitchell, Director of Capital Markets. You can reach him at Darreck@Sunwealth.com.
MBA 2021 Renewable Energy Summit
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Andrew Hollander joined Sunwealth as an Associate shortly after graduating from Bentley University. He is amped to put his degree to work and motivated to create a clean energy future for all. When he’s not managing solar assets, he can be found watching Seinfield or spending time with friends and family.