12. Building equity into infrastructure
Residents Trained to Install Solar on NYC Housing Authority Buildings
Program Creates Energy Savings for Low- and Moderate-Income New Yorkers
By Jess Brooks, Chief Development Officer
In this twelfth installment of our Banking on Solar series, we go behind-the-scenes on a Sunwealth solar project with the New York City Housing Authority (NYCHA) to learn how Sunwealth partners with community organizations, small businesses and public entities like NYCHA to build meaningful economic justice impacts into infrastructure investments.
To start at the beginning of the series, read Banking on Solar.
Twelve newly trained solar installers are placing panels on New York City Housing Authority developments to provide clean power at discounted rates for low- and moderate-income subscribers.
These workers, who are NYCHA residents from across the city, are currently atop roofs at Glenwood Houses, a development in the Flatlands area of Brooklyn. From there, they'll move to Kingsborough Houses in Brooklyn's Crown Heights neighborhood. They’ve already completed installation work at Carver Houses in northern Manhattan.
“I love this job very, very much.”
The solar arrays at the three developments will be capable of generating about 1 megawatt of electricity.
At least 400 low- and moderate-income New Yorkers will benefit from this power, saving about $120 a year each on their electric bills. Lease revenue from use of the roof space will go to the host NYCHA developments.
A Collaborative Effort to Bring Solar Benefits to a Broad Audience
The program represents a collaboration between NYCHA and a number of other partners with proven records of contributing to New York City's sustainability:
The lead partner, Solar One, provides training and education to make sustainable energy and green jobs more accessible for all New Yorkers.
WE ACT for Environmental Justice and the Brooklyn Movement Center are recruiting and screening prospective subscribers for the project. That outreach focuses on residents of affordable housing and those receiving benefits from the Supplemental Nutrition Assistance Program.
Green City Force, WE ACT, and NYCHA recruited applicants for the apprenticeships.
The apprentices work for Accord Power, a Queens-based solar installer and certified Minority Business Enterprise.
The New York City Community Energy Co-op, part of the Co-op Power regional network of community energy co-ops, will manage customer subscriptions.
Con-Edison provided inter-connection and administers the program through its Community Power initiative.
Sustainable CUNY, an initiative of the City University of New York, provided technical assistance, using its New York Solar Map (nysolarmap.com) to assess the solar potential of NYCHA's rooftops.
The project is financed by Sunwealth.
“Community-based solar provides an opportunity to generate clean energy, jobs and savings - but we need to be intentional about creating those benefits in all communities,” said Sunwealth CEO Jon Abe. “We are proud to collaborate with NYCHA, Solar One, Co-op Power, Accord Power and all the on-the-ground individuals and organizations who worked to make these projects a reality.”
NYC Housing Authority (NYCHA) residents installing solar panels on the rooftops George Washington Carver Homes in Brooklyn, NY. These rooftops are of 1MW of solar installed across 40 buildings, which will provide discounted power for 400 low- and moderate-income New Yorkers.
Meaningful Savings for Low- and Moderate-Income New Yorkers
The program is open to low- and moderate-income New Yorkers who are Con Edison customers. These households will receive discounts on their electric bills in return for paying a subscription fee. The customer will always receive a net benefit or savings on their utility bill because the subscription fee will be 20 percent less than the full dollar value of the solar energy credits they receive.
Participating households will save money for the life of the solar panels – which is expected to be about 25 years. Low- and moderate-income New Yorkers are invited to confirm their eligibility and sign up to learn more at communitypower.nyc.
"Community Power shows how public, utility, and community partnerships can develop successful renewable energy projects that provide good jobs and utility bill savings to those who need it most," said Juan Parra, director of Community Solar for Solar One. "This model can be replicated with other public rooftops in NYC and beyond. It's the Green New Deal in action."
Putting NYCHA Residents at the Center
NBC New York visited the construction site at Glenwood Homes in Brooklyn. News 4’s Adam Kuperstein interviewed NYCHA resident Sarahi Bello, who described what it’s like to making NYCHA greener.
“I love this job very, very much,” Bello said. “Doing this is upgrading NYCHA, in my eyes. I’m a part of that.”
"We are determined to build an inclusive clean energy future with opportunities for all," said Tim Cawley, chief executive officer of Con Edison. "This program is giving apprentice installers the chance to develop a marketable skill in a growing field, while providing low- and moderate-income customers with access to clean energy and savings on their utility bills.”
"We are proud to facilitate solar teams that connect NYCHA residents to green careers, both in their communities and throughout New York City," said Vlada Kenniff, vice president for Energy & Sustainability for NYCHA. "These partnerships provide our residents with low-cost solar energy and a wider opportunity to participate in the clean energy workforce."
"Green City Force is excited to be a part of this clean energy project with our partners," said Tonya Gayle, executive director. "This groundbreaking initiative is providing affordable clean energy to low- and moderate-income residents in Brooklyn and Manhattan and addressing the gap between disenfranchised communities and sustainable careers. This project diversifies NYC's green workforce and will help achieve the city's climate goals."
Brooklyn City Council Member Farah N. Louis put the NYCHA solar projects into the broader context of economic recovery. “With homes transformed into classrooms and workspaces during the Covid-19 pandemic, public demand for reliable energy is rising. We cannot leave families struggling to make rent, buy groceries, or pay their bills, in the dark.”
Louis continued, “The rollout plan to harness solar energy for NYCHA developments will create stability, equity, and sustainability among one of the hardest-hit populations. From solar panels to green careers, (NYCHA) residents will play a vital role in the recovery effort and lead our city towards a brighter future."
Blending Profit with Purpose: A Match for Community Banks
Sunwealth tax equity investors supporting these projects provide an equity investment in exchange for a majority of the tax benefits and preferred returns on the cash flows generated by the portfolio. Tax equity investment represents only a portion of the capital stack, but receives 99% of the tax benefit. The financial benefits for the tax equity investor include:
Rapid return of capital via dollar-for-dollar reduction in federal taxes through the 26% Investment Tax Credit (ITC), allowing the tax equity investor to recoup upwards of 75% of an investment in Year 1
Accelerated depreciation deductions for the majority of the cost of the solar assets, allowing investors to “keep” funds that would otherwise be paid to the IRS
Double-digit after-tax returns from tax savings and cash yield
Low-risk, predictable returns based on tax benefits and stable, fixed-rate cash flows from long-term contracts
Scalable structure, providing effective tax planning opportunities to entities with regular taxable income
Solar tax equity investing with Sunwealth allows our bank partners to invest in projects that strengthen and revitalize our communities - and in the process to help shape who benefits from infrastructure investment and our transition to a clean energy economy. For community banks, who measuring return on investment in term of community returns as well as financial, this investment offers the opportunity to blend profit and purpose, creating a win-win for everyone involved.
Learn more about how Sunwealth could put your money to work by reaching out to Darreck Mitchell, Director of Capital Markets at darreck@sunwealth.com.
Jess Brooks is Chief Development Officer at Sunwealth where she helps investors put their money to work building a better clean energy future. When she isn't connecting with investors, she's proud Mom-in-Chief to two boys; she also volunteers with The Carrot Project, Generation Citizen and First Teacher.