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Above: Sunwealth’s 60kW solar installation on the roof of the Bornstein and Pearl Food Production Center in Dorchester, MA, helps reduce electricity costs for the building’s common areas. The center hosts over 50 community-focused businesses, including many led by women and minority entrepreneurs.
The U.S. Energy Information Administration (EIA) forecasts a 75% increase in solar generation from 2023 to 2025. As the solar industry races to address climate change and meet escalating demand from electrification and data centers, there lies a valuable opportunity to simultaneously address socioeconomic inequalities across the nation.
At Sunwealth, we challenge ourselves to ask: Who is benefiting from the growth of the solar economy? What other community needs could this opportunity meet? Who else can be included? How can we scale the solar economy while uncompromisingly pursuing justice?
By persistently posing these questions and staying vigilant to potential gaps, we identified a critical financing void in the solar industry and founded Sunwealth to finance and manage small to medium-sized projects in the built environment, particularly in traditionally underserved areas.
Projects for essential community institutions like houses of worship, daycares, or fire departments are more difficult to underwrite than residential projects and offer slimmer profit margins than utility-scale projects. Typical financiers and developers are not interested in paying the same amount of work (surveys, inspections, engineering reports) for a 20-megawatt (MW) project as for a 20-kilowatt (kW) project. Without the financial resources to put up hundreds of thousands to millions of dollars for solar, the projects for these organizations are sidelined and often left behind or left with burdensome cost structures.
By partnering with local solar installers and mission-aligned investors, we’re not just funding these crucial projects — we’re pioneering a better energy future. Founded in 2014, Sunwealth has invested over $200 million in more than 650 operational solar installations across 18 states, reducing 1.2 million metric tons in carbon emissions and generating $125 million in lifetime energy savings for our customers. 57% of these projects directly benefit low-to-moderate income communities, ensuring that the advantages of clean energy reach those who need it most. Together, we’re empowering communities, boosting local economies, and leading the way toward a more sustainable and just energy landscape.
We are committed to continuously broadening our impact by listening closely to our partners and communities. Among other initiatives, we have recently been focusing on alleviating energy burdens for non-homeowners and providing critical early-stage capital to underrepresented developers, further enhancing our efforts to drive equitable and sustainable growth in the solar sector.
Alleviating Energy Burden for Renters
Electricity costs in the US have risen by 4.4% over the past year, surpassing general inflation rates.1 This increase disproportionately affects low-income households, which spend on average 8.1% of their income on energy while non-low-income households spend only 2.3% on average.2 Consequently, approximately one in five households has had to cut back on necessities like food and medicine to cover energy costs.3
Although low-income households stand to benefit the most from lower electricity costs, many are renters and thus cannot install solar panels or other energy efficiency measures in their homes. Community solar projects address this challenge by generating electricity for the grid and allowing individuals to purchase energy through credits on their electric bills. This allows families to economically benefit from solar energy without needing to own their own roof.
Sunwealth’s most expansive community solar portfolio is with the New York Housing Authority (NYCHA), which spans 67 rooftops across NYCHA’s buildings (pictured above). The projects total 3 MW of solar and offer an average 16% discount on energy costs to more than 970 community solar subscribers, with 73% of them categorized as low-income participants.
There is significant opportunity for energy savings to positively impact low-income households, alleviating economic burdens and fostering greater financial stability, and Sunwealth is committed to growing our community solar portfolio to meet the opportunity.
Fostering Economic Growth for Underrepresented Developers
Solar jobs are projected to double by 2033, presenting significant opportunities for wealth creation within the sector.4 The U.S. Solar Jobs Census reveals stark disparities: women comprise only 31% and Black Americans just 9% of the solar workforce. The statistics for the makeup of leadership and ownership of solar companies are even more bleak.
In response to these challenges, Sunwealth launched the Solar Justice Fund in 2023 to champion equity in solar development and foster a more inclusive clean energy ecosystem.
A key initiative of the Solar Justice Fund involves partnering with diverse developers, providing crucial capital for pre-construction activities to accelerate their project development. Our inaugural developer partner, Sol Source Power, a women-led community solar developer focusing on low-income projects in New York and Illinois, exemplifies the fund\’s impact.
“Without Sunwealth’s support, our growth would hinge solely upon our ability to sell projects upon development completion. By advancing capital and grasping development milestones and challenges, Sunwealth has significantly accelerated our growth.” said Lindsey McEntire, the Co-Founder and Chief Development Officer of Sol Source Power.
By empowering diverse leaders and owners, Sunwealth aims to cultivate a more inclusive solar workforce. We believe that diverse solar developers are better positioned to attract and retain a diverse workforce, which is not only a moral imperative but also a strategic advantage essential for meeting the industry\’s expanding demands.
The Solar Justice Fund not only enhances wealth-building opportunities for diverse individuals in the solar sector but also collaborates with developers who are committed to creating meaningful projects. For example, Sol Source focuses on delivering low-income community solar projects within their home state, thereby addressing local energy needs and promoting equitable access to solar benefits.
Join the Movement
The opportunity to forge a more inclusive and sustainable economy is more promising than ever due to initiatives like the Inflation Reduction Act, which is on track to catalyze hundreds of billions of dollars in clean energy investment nationwide. With solar energy projects and manufacturing jobs expanding rapidly from Appalachia to California, it’s clear that solar is here to stay. But it’s up to us to ensure that the benefits of solar energy reach those who need it most.
Sunwealth is dedicated to democratizing the benefits of solar through purposeful development and strategic partnerships. Beyond the initiatives highlighted here, we are working to enhance community resilience with solar battery storage in areas vulnerable to extreme weather, revitalizing economies impacted by declining fossil fuel industries and scaling our efforts to include even more high-impact, small-scale projects.
Now is the perfect moment to join Sunwealth and harness this opportunity to create a green economy that benefits all. Together, we can build a better energy future, ensuring it delivers lasting, positive change for every community.
Article by Jonathan Abe and Martha Buckley, Sunwealth
Jonathan Abe, is the Chief Executive Officer of Sunwealth, is a renewable project developer, financier, and asset manager with deep commercial solar transaction experience. Previously, Jon was a Senior Vice President at Nexamp. While with Nexamp, Jon was the head of business development, asset management, and policy. There, Jon supported the development and financing of over 40 MW of commercial-scale solar projects. He was also General Manager of Nexamp Capital, which controlled a diverse portfolio of solar assets. Additionally, Jon worked for the Massachusetts Renewable Energy Trust where he developed and managed the $68 million Commonwealth Solar program. Jon received his BA from Cornell University.
Martha Buckley is a Senior Manager of Investor Development at Sunwealth, where she is responsible for helping mission-driven investors align their investments for environmental, social, and economic impact. She brings 12 years of diverse social impact sector and fundraising experience, including having led corporate philanthropy grantmaking at Staples, Inc, and most recently leading development efforts on the frontlines of the housing crisis at Heading Home, which is one the Commonwealth of Massachusetts\’ largest provider of shelter, housing & supportive services for families and adults experiencing homelessness. Martha holds a BA in Organizational Communication from Miami University (Ohio) and an MBA from Babson College, where she also currently serves as a member of the Board of Trustees.
Footnotes:
1 U.S. Bureau of Labor Statistics. (2024). Consumer Price Index Summary. https://www.bls.gov/news.release/cpi.nr0.htm
2 American Council for an Energy-Efficient Economy. (2020). Energy Burden Report. https://www.aceee.org/energy-burden
3 U.S. Energy Information Administration. (2018). Residential Energy Consumption Survey. https://www.eia.gov/todayinenergy/detail.php?id=37072
4 Solar Energy Industries Association. Impact of the Inflation Reduction Act. https://www.seia.org/research-resources/impact-inflation-reduction-act#:~:text=The%20IRA%20%26%20U.S.%20Jobs,with%20a%20no%2DIRA%20scenario
