Sunwealth’s CFO, Omar Blayton, moderated a panel at the February SEIA/SEPA Solar & Storage Northeast conference called “Clean Energy for All,” which engaged three expert panelists to discuss the critical question: “How can we ensure renewable energy systems are deployed equitably, so everyone reaps the benefits?”

Pictured from left to right: Omar Blayton (moderator), Zack Gerson (panelist), Tolu Omotoso (panelist), Adaora Ifbeigh (panelist)

Many climate leaders believe the transition to clean energy presents an opportunity to address the ever-widening wealth gap in the U.S. The fully seated conference hall during Blayton’s session was a testament to the growing interest in this vision. Three panelists joined Blayton for the conversation: Tolu Omotoso, Director of Energy Solutions at the National Rural Electric Cooperative Association; Adaora Ifbeigh, Director of Impact at Sol Systems; and Zack Gerson, Partner at Foley Hoag. The panelists discussed the connection between energy and income inequality, the hope that clean energy development can be an instrument for racial and economic justice, and the role that the public and private sectors will play in achieving this goal. Below are three key takeaways:

1.) The transition to clean energy presents an opportunity to combat economic and environmental burdens faced by marginalized communities, but the opportunity will only be realized with hard work and focused solutions.

The energy economy is plagued by inequities, with disproportionate burdens falling on communities that are low-income, rural, and composed of racial minorities. Panelist Tolu Omotoso shared that “60% of Americans cannot afford a $1,000 emergency,” meaning many individuals and families “have to make decisions on whether to pay for energy or to buy groceries.”

While energy burdens often exacerbate challenges faced by marginalized communities, the transition to clean energy offers solutions that improve the way these communities interact with the energy economy. As panelist Zach Gerson put it, “Not only can renewable energy be deployed equitably, but it can be deployed in a way that addresses existing equity issues in the system.” He added, however, “It’s not going to happen on its own. To make it happen, it is important to focus on specific outcomes.”

Specific outcomes cited by the panelists include electricity discounts through Community Solar arrays, which allow renters and low-income individuals to receive savings from nearby solar panels in their communities. Additionally, capital can be deployed in low-income communities when financiers claim tax incentives on behalf of tax-exempt non-profits and individuals to install solar panels directly on their offices and homes. This invites entities with limited resources to tap into steady electricity savings through power purchase agreements.

2.) Policy initiatives and financial tools are key ingredients, but the recipe for energy justice will not be complete without community outreach and education.

Massachusetts is among the states leading the way on incentivizing clean energy investment in low-income communities. For example, MA offers additional incentives to developers that distribute Community Solar savings to low-income communities. Nonetheless, Gerson noted that of the 200+ MW of solar energy facilities supported by incentives in Eversource East (the utility region that encompasses Greater Boston), only 3% of facilities support low-income Community Solar.

Blayton asked the panelists what the primary barriers are to clean energy adoption in low-income communities that explain such outcomes. Ifbeigh commented that even with strong policies and financial incentives, community outreach and education are necessary. Ifbeigh cited a successful example of community engagement orchestrated by her team at Sol Systems alongside Microsoft: “Sol Systems [will deliver] 500 MW of clean energy projects to Microsoft to help them meet their [corporate clean energy goals]. This partnership is then layered with a community impact agreement to also invest in the communities in and around the solar projects.” Once projects are cited, Ifbeigh and her team connect with trusted community organizations like food banks and houses of worship to procure meaningful benefits for the surrounding community, like access to resilience hubs and Community Solar participation. Ifbeigh noted “[There is] a way for corporate buyers to go beyond clean energy procurement to also look at the systemic community impact they can have.”

3.) Energy justice solutions can extend beyond energy savings to also serve as catalysts for job growth and community revitalization.

Clean energy development not only promotes cost savings and cleaner living spaces; it also promotes job opportunities for a growing workforce. The panelists noted that workforce development programs enable wealth-building by providing jobs and training that lay the foundation for careers in clean energy. One example cited was the solar workforce development program offered to New York City Housing Authority residents by Green City Force. The program offers job training and a living wage which quickly transforms into a prevailing wage and an opportunity to build a livelihood out of the clean energy transition. Gerson noted that workforce development initiatives expand the narrative from “have you installed solar on your roof, or are you participating in community solar?” to “are you able to participate in the economic activities involved with [a clean energy transition]?”

Sunwealth continues energy justice leadership at RE+ Northeast