- Newsletter (255)
Declining renewable energy costs paired with the potential for significant economic, environmental, and community benefits make the deployment of solar energy systems an attractive option to address the climate crisis. However, for distributed solar to drive more rapid carbon reductions beyond the public commitments of companies and government, funding solutions, whether through grants, loans, or other financial tools, must be unlocked to help customers of all types to participate in this transition.
This report focuses on identifying gaps in Michigan’s market for customer-sited solar generation and how small philanthropic funders can help address such gaps by deploying their capital. To address these market challenges for customers and funders alike, grants, loans, credit enhancements, and unique payment structures such as power purchase agreements (PPAs) can provide some combination of reduced upfront costs, improved interest, or improved tenor for borrowers and reduced risk or increased returns for lenders.
Based on research, interviews, and a review of case studies, this report highlights three recommended options for small philanthropic funders to consider utilizing with the goal of increasing customer-sited solar deployments in Michigan.
Read the full report here: