Who, What, When, Where, Why and How

How it Works…

Using renewable energy tax incentives coupled with qualified opportunity zone investment incentives, the Norfolk Solar Qualified Opportunity Zone Fund maximizes the benefits of third-party power purchase agreements (PPAs) within these under-resourced communities. Our fund operates with the following requirements:

  • Turn-key ready solar installations will be installed to all applicable legal requirements at NO COST to qualified clients within the QOZs.

  • The OZ Fund recoups the investment via tax credits and the agreed upon monthly cost of the energy to the client.

  • The client stays cost neutral because the installation is at no cost, and repayment is made out of the savings on electricity.  Therefore it is truly a free installation to the client.

  • The solar installer, in partnership with the fund, will maintain a paid, on-the-job training program to residents of the qualified opportunity zone to help address the wage and skills gap in these communities.

Why it works…

  • Third-party power purchase agreements (PPAs) have been a successful method of deploying solar installations for more than a decade. In Colorado, for example, they make up more than 75% of the installed solar PV. 

  • Solar PPAs terms typically run between 10-25 years.  The Norfolk Solar PPA term is about 10 years, giving the Fund a competitive edge  by allowing the client to own their solar install and receive the associated savings much sooner than most PPA structures.  The term length with the Norfolk Solar QOZ fund is based on the requirement to keep the client no-cost and the fund profitable through all available tax incentives.

  • Offering exclusivity or partial exclusivity of the Fund to an installer ensures a more competitive rate than job-to-job contracting. Maximizing QOZ investment means hitting required IRS deadlines as far as the percentage of the Fund that is deployed at 6 and 12 months after launch, and that can be easily realized through a mutually exclusive relationship with an installer.

Where and what makes it Work…

A qualified opportunity zone is defined by the IRS as an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Investing in solar installations within these zones offers a tax benefit to the investor, an opportunity for businesses and non-profits to lower their energy costs, reduce their carbon footprint and receive free solar installation. A win-win for everyone. See if you are within the qualified opportunity zone- a map of qualified opportunity zones in Virginia is available here (see map).

In addition to the tax credit, the system will be paid off by the business paying the Fund for the electricity generated by the solar panels for the first several years (8-15 years, depending on the electricity rate).  The business will have exactly the same utility bill as before — it’s just that after the installation, some will go to the Fund and the rest will go to the utility.  After the payoff period, the business will own their solar free and clear, never having spent an extra dime on it, and will have the benefit of free solar electricity for decades into the future.

When the initial fund started, the hope was to be able to install FREE solar on the residences within the qualified opportunity zones. Unfortunately, Virginia law when we started restricted us to businesses and non-profits - but we have been happy to present this opportunity to local businesses and non-profits. Due to the Virginia Clean Economy Act, low-income home owners can now benefit by having solar installed and paying for it via a PPA -- so their out of pocket cost is zero. Norfolk Solar OZ Fund is installing solar on one home as a pilot for what is now allowed by Virginia law. The hope is that investors may come forward to do more homes in QOZs.

Norfolk Solar, LLC is happy to assist/consult on solar projects anywhere in the U.S.. However, limitations to solar projects are state law specific, so we currently do not install or oversee installations outside of Virginia.

WHo We Are…

  • Ruth McElroy Amundsen is a NASA engineer, the original Norfolk Solar QOZ Fund investor, and the Founder of Norfolk Solar, LLC.  She has an extensive history as a local and state advocate for solar policy and fair installation practices.  She led the first large solar installation on a Hampton Roads school, which was financed by a parent LLC, and also has solar on her home.  She is on the board for Solar United Neighbors and helped lead the Hampton Roads Solar Home Tour for many years.  She runs the day-to-day financial oversight of the fund, is the main point of contact for the legal and financial professionals and drafts the PPA documents. 

  • Alden Cleanthes is a business owner and locally appointed official. She has years of experience working on the state and federal level as an advocate for clean air and clean water legislation. She is the independently contracted Fund Manager of Norfolk Solar QOZ Fund, and the Co-Founder of Norfolk Solar, LLC. Charged with Fund management from initialization to completion. She handles all of the day-to-day needs, including but not limited to, website creation and management, social media creation and management, publicity generation, point of contact for investors, installers, clients, volunteers, press, partners also worked with The Opportunity Project 2019 (US Census Bureau) to catalyze QOZ investment across the nation.

  • We are NOT financial advisors, and as such do not provide financial services or advice. We do not oversee the investment beyond the deployment of the funds.  We are a deployment vessel for qualified funds. We include in our process: Community outreach and coordination, identification and vetting of potential OZ solar clients, RFP for a solar installer, reward of fund to a solar installer, developing the required documents/contracts for all phases and ensuring a billing system for the repayment of the investment through the inverter monitoring system, oversight of the project installation. At that point, the system becomes the responsibility of the investor or designated agent/agency of the investor. 

WHen…

The common belief is the Qualified Opportunity Zone investment tax incentives may not be a long-term benefit. Our hope is that we can show that these tax-incentivized investments can create permanent positive impacts, and therefore should be renewed and continued. However, there is still time to invest and receive these benefits for now. We also have a vast knowledge of investment solar outside of QOZs and will continue to pursue the proliferation of solar for all through our investment models.