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NMTC Opportunity: PosiGen Solar Energy Project

Asset ClassNew Market Tax Credit, Community Facilities - Other
GeographyGeorgia
CityAtlanta, GA
Amount$20,000,000
Financing TypeNMTC Allocation
Interest Areas
Diversity Equity and Inclusion
Equity Investment
Environment/Energy
Housing
Impact Investing
Minority
Place Based
Technology
Urban

PosiGen requests a $20 million QEI to expand its residential solar leasing program into the state of Georgia (the “Project”). At an average cost of $22,000 per system, this Project represents approximately 900 residential solar systems for low-income community residents. The project installations will be within highly distressed qualified census tracts and will be deployed over a period of approximately 18 months. PosiGen is a residential solar installation company that purchases, installs and subsequently leases solar systems utilized to generate electricity for predominately low- to moderate-income families. They are the only scalable company addressing the gulf in solar access between affluent and low- to middle-income homeowners.

Energy efficiency improvements should be accessible to all, and PosiGen has a track record of reducing energy costs to minority and women-led households. PosiGen creates unprecedented access to the benefits of clean energy and energy efficiency, and customers are not shut-out based on FICO score. Energy efficiency upgrades enhance cost savings and improve home comfort and air quality while standardized lease terms and fixed lease payments eliminate confusion and sustain customer savings.

Community Impacts:

  • Quality Job Creation: This Project will create 76 permanent jobs with starting salaries averaging $39,000 per year. Jobs include a comprehensive benefit package with 401(k), profit sharing, medical, dental, and vision coverage. PosiGen will target a minimum 35% low-income hires and offers job training to entry level employees with an interest in developing a technical career path.
  • Economic Benefit to Low-Income Families: The average family in the PosiGen program drops their energy costs $1,544 in the first year, a savings of more than $400 over the cost of leased equipment. Every dollar that a lower income resident in the Southeast saves on their utility bill translates into an estimated $3.90 in economic benefit to the local community, as customers spend their savings locally.
  • Environmental Benefits: PosiGen’s solar installations reduce the energy demand in the community, saving families money while improving the health, durability and comfort of their homes. The company estimates that for a 900-home Georgia project, it will deliver 3.6 megawatt hours per year of energy demand reduction, resulting in 5,700 tons of carbon reduction.

Note: The data below reflects an example of a highly distressed qualified census tract, not an actual address currently in PosiGen's portfolio. All addresses will be in highly distressed qualified census tracts in Atlanta, Georgia.

 

Non-Metropolitan County Status and NMTC Eligibility: 
Not Eligible or Not Non-Metropolitan

Data provided by

CDFI Fund New Markets Tax Credit Eligibility

% of Area Median Income: 
33.29%
Poverty Rate: 
39.00%
Unemployment Rate: 
17.80%
SBA HUBZone: 
Qualified HUBZone
Medically Underserved Area: 
Medically Underserved Area

CDFI Fund Investment Areas

High Population Loss: 
Low Population Loss (Metro & Non-Metro)
Total Population: 
2,184
% of Area Median Income: 
40.28%
Unemployment Rate: 
14.8%
Poverty Rate: 
21.0%

CRA Eligibility

CRA Eligibility: 
Low Income
% of Area Median Income: 
33.29%
Minority Population: 
2,159

BEA Distressed Communities

BEA Distressed Community: 
Distressed Community (Partial)