April 22, 2024
Addressing environmental challenges has never been more urgent. Climate change, pollution, and resource depletion are just a few of the pressing issues facing our planet today. As the world grapples with these challenges, impact investing has emerged as a powerful tool for driving positive change while also generating financial returns.
The global impact investing market size is anticipated to grow from $3 trillion to $7.78 trillion in the next 10 years with rapid growth due to favorable government policies and initiatives, according to The Brainy Insights. Thanks to our track record and ability to measure and report financial and impact performance, we’re uniquely positioned to lead sustainable business growth initiatives and expand access to renewable energy.
Understanding Impact Investing
Impact investing considers the broad implications of investments on society and the planet alongside positive returns. This approach has gained traction recently as investors and enterprises increasingly recognize the importance of sustainability and social responsibility.
Our Approach
As an industry-leading impact investment firm with more than 30 years of experience, Advantage Capital is purposeful in driving true growth for individuals, communities, and society.
In addition to investing in growth-ready small businesses and affordable housing developments, we invest in renewables to expand access to clean energy solutions across the country while generating new job opportunities within an innovative industry.
Renewables provide low-cost, sustainable energy solutions to people, households, and communities able to access them. That’s why we leverage tax credit programs to finance and develop high-impact projects that actively expand access to clean energy innovation in America. Currently, we have an emphasis on solar solutions, as it is the fastest-growing energy sector in the world at some of the lowest costs for consumers. And while the broader environmental impact provides a needed course correction for energy use, the localized impact is also noteworthy; the solar projects we support are often the largest-ever investment in the areas where they are located.
We and our partners together have facilitated more than $1.6 billion in renewables transactions since 2017, which will add more than 1.9 gigawatts to our energy infrastructure (estimated to ultimately power the equivalent of more than 1 million homes). These renewable energy initiatives add much-needed clean energy capacity in the U.S. and help our investors meet their sustainability goals.
Our Investments
Our impact ranges from investing in residential projects that ensure a stable energy source in Puerto Rico to partnering on utility-scale endeavors, as well as community solar initiatives. Together, these efforts forge a path toward sustainable community impact across the nation.
Puerto Rico Solar & Battery Storage
One of the most impactful projects we’ve undertaken involved the installation of rooftop residential solar and battery storage in Puerto Rico. Given Puerto Rico’s unreliable powergrid, this initiative has significantly enhanced residents’ access to dependable electricity, particularly during instances of grid failure or natural disasters such as hurricanes.
Hoosier Solar
Advantage Capital provided equity financing to Hoosier Solar—a development company of over 1 gigawatt of utility-scale solar projects in communities in rural Indiana. Hoosier Solar will not only assist the state in transitioning away from fossil fuel electricity generation, but also support significant economic development in local communities with needed capital investment. Hoosier Solar is committed to responsible solar developments that grow the local economy through lease payments to landowners and increased tax revenue. It will use Indiana labor, source Indiana raw materials, and generate low-cost energy for Indiana residents.
To foster community relations, Hoosier Solar has invested in several initiatives including a donation to reconstruct the Starke County Fairgrounds Swine Barn renaming it the Hoosier Solar Swine Barn. Also, Hoosier Solar has pledged $35,000 to the Starke County Community Foundation to establish a permanent Hoosier Solar Community Fund. The Starke County Community Foundation was able to triple the donation to $105,000 as a result of an ongoing matching opportunity that matches every dollar donated with two more, aiming to raise $355,000 by the end of this year. LEARN MORE.
Hornet Solar
We closed a 10-year Production Tax Credits (PTC) transfer commitment with a subsidiary of Vesper Energy—a developer, owner, and operator of utility-scale renewable energy assets—for its Hornet Solar project. The Hornet Solar project will be one of the first utility-scale solar projects to utilize the PTC and transfer provisions established by the Inflation Reduction Act (IRA).
With a capacity of 600 megawatts alternating current (MWac), Hornet Solar will be one of the largest single-phase solar projects in the U.S., generating enough clean energy to power 160,000 homes annually. LEARN MORE.
Cutlass Solar II
In December, we committed to providing an investment to Sabanci Renewables Inc.—a North American subsidiary of Sabanci Holding—to complete the financing of its Cutlass Solar II project, a 272 MWdc utility-scale solar project under construction in the Electric Reliability Council of Texas (ERCOT). Advantage Capital’s tax equity investment, which leverages federal Investment Tax Credits (ITCs), will help to provide a portion of the external capital necessary for Sabanci to complete the construction of the project.
Cutlass II is expected to commence operations in April 2024 and includes more than 500,000 solar panels, which will provide sustainable electricity to more than 80,000 homes in Texas and create hundreds of local jobs. The project will also help to mitigate energy supply security concerns, especially in the hot summer months within the growing Houston hub. LEARN MORE.
Dimension Renewable Energy
Last year, Advantage Capital provided tax equity financing for multiple community solar portfolios, including Dimension Renewable Energy. This portfolio aims to boost community solar growth nationwide, with Advantage Capital’s investment directly supporting projects in Virginia, California, and New York. These projects will supply solar energy to thousands of residential and commercial customers, prioritizing low- and moderate-income households.
Community solar is pivotal in expanding renewable energy access, allowing utility customers to benefit from solar energy without installing panels at home. By subscribing to a share of a local community solar project, households and small businesses receive energy-saving credits on their utility bills monthly. Additionally, Dimension’s initiatives include workforce development and education programs, contributing to capacity-building investments in local communities. LEARN MORE.
Impact investing has the potential to play a significant role in addressing environmental challenges. As investors, policymakers, and businesses increasingly prioritize sustainability and socioeconomic outcomes, impact investing will continue to gain prominence as a powerful mechanism for creating a more equitable economy. By harnessing the power of capital for good, our work is paving the way for a brighter future for both people and the planet.
Contact us to learn more about our work expanding access to renewable energy.
The individual case studies represent a sample of Advantage Capital’s investments that were selected solely to illustrate their community impact under tax credit programs. The profitability of any single investment was not a factor in the selection process. The project investments referenced herein should not be interpreted or construed as performance data of any kind, nor as any implication or statement that investments previously made by Advantage Capital were or are successful, or that past performance is any indication of future performance. All investments involve risk and unless otherwise stated, are not guaranteed.
