In the U.S., we believe distributed renewable energy solutions are playing a critical role in advancing the energy transition and democratizing access to clean power. Community solar, a key facet of this approach, bridges the gap for consumers with limited access to renewables. By connecting community members to local solar projects, these projects support the injection of more solar energy onto the grid and enable access to more affordable power for consumers.
38 Degrees North is focused on advancing distributed renewables solutions, serving as a development partner, asset owner, and operator. With a depth of experience in energy transition capital partnerships, the company specializes in community solar, distributed generation and battery storage, and other sustainable infrastructure assets. Its approach is geared toward cultivating lasting relationships with development partners and designing dependable, flexible solutions that provide clear visibility into portfolio value creation.
Overcoming Barriers and Advancing Equity
Residential solar systems are unsuitable for nearly three-quarters of rooftops in the U.S. due to factors such as roof conditions or shading regardless of income level. Additionally, many low to moderate-income households are excluded from the build-out of distributed renewables due to factors such as home ownership status, decision-making power, or financial ability.
We believe current rooftop solar policies, like net metering, further exacerbate these socioeconomic disparities by shifting grid maintenance costs from solar users to non-solar users, often raising their bills. Community solar has emerged as a solution to the financial and physical constraints of rooftop solar, offering an equitable clean energy solution to underserved communities that have historically been left out of the energy transition.
As a more accessible clean power solution, community solar overcomes these challenges and helps enable households to access renewable energy by allowing customers to subscribe to local projects and receive access to their financial and environmental benefits without the upfront investment costs of home installation.
Distributed solar and storage can also provide a community with a source of electricity for basic needs during grid outages resulting from extreme weather or other emergencies helping to increase the resiliency of the electricity system. Additionally, it can support corporate and industrial users in accessing a cleaner electricity supply on-site, aiding them in reducing Scope 2 emissions, which are indirect greenhouse gas emissions from the consumption of purchased electricity.
Driving Growth in Distributed Renewables
38 Degrees North has advanced distributed renewables solutions across key markets, supporting local developers with project pipeline progression. The company participates across the development-stage spectrum, managing projects from origination through operations by taking a collaborative and partnership-minded approach to working with developers of renewable energy projects. To date, the company has successfully aggregated, financed, constructed, and managed over 400 MW across over 100 projects through partnerships with high-quality institutional investor partners.
Looking ahead, 38 Degrees North will partner with landowners, local communities and customers while also continuing to support local developers in progressing their project pipelines. By providing creative capital solutions to developer partners, 38 Degrees North is helping enable the deployment of community solar and distributed renewable assets across the U.S.
S2G is excited to be partnering with the industry veterans at 38 Degrees North to help drive the next phase of the company’s growth. We continue to be impressed by the management team’s thoughtful structuring approach, extensive execution experience and demonstrated resilience through historical uncertainties in the solar market, which we believe positions them well for the future. We look forward to supporting them in their journey.
Image Source: 38 Degrees North