The portfolio is planned to be developed in locations across the United States from 2025 through 2029.
Community solar developer Pivot Energy announced it has entered a five-year agreement with Microsoft to deploy up to 500 MW of community solar projects. The projects are planned to be developed in locations across the United States between 2025 and 2029.
Over 20 years, the 500 MWac is expected to produce more than 1 billion kilowatt hours of electricity annually, which is enough energy to power approximately 90,000 homes a year. This is equivalent to removing approximately 165,000 gas-powered passenger vehicles off the road each year, said Pivot Energy.
The agreement is Pivot’s largest renewable energy credit (REC) agreement to date. It also marks Microsoft’s first major distributed generation portfolio investment. Microsoft will purchase RECs generated by the projects for a 20-year term. By matching customer electricity usage with new renewable electricity generation, Microsoft supports its goal of reducing Scope 3 emissions by more than half by 2030.
Pivot will develop approximately 150 solar projects in 100 communities across 20 states, including Colorado, Maryland, Illinois, Delaware, Pennsylvania, and Ohio. The first projects are expected to come online this year.
“We believe the clean energy transition can and should benefit communities across the United States that have been historically excluded from economic opportunity,” said Adrian Anderson, general manager, renewables, Microsoft. “Through our work with Pivot Energy and with its commitments to driving community impact, this collaboration helps to build more inclusive, local economic growth across 100 communities while addressing the sustainability needs and opportunities within those communities.”
The agreement outlines four overarching community-centric initiatives that Pivot said it will prioritize:
1) Increasing the diversity of its subcontractors.
2) Partnering with workforce development organizations and subcontractors to train and hire local diverse talent.
3) Partnering with Sustain Our Future Foundation to invest in equitable community initiatives.
4) Increasing the energy bill savings of the community solar projects directed to low-income subscribers.
“An economy fueled by clean, distributed energy can do more than provide power at low cost; it drives growth and success in communities across the nation,” said Tom Hunt, chief executive officer, Pivot Energy.
