The Plankton-Gratitude Yield Co. has raised $10.75 million in equity and, with leverage and tax credits, aims to buy 35 to 40 projects worth around $40 million.
New York-based Plankton, a developer of smaller commercial and community solar projects, primarily in New York, New Jersey, Massachusetts and California, arranges the leases, permits, purchase agreements and interconnections before selling it to the yieldco, which is expected to generate returns to investors in the mid-teens. Gratitude is an impact-focused investor network and asset manager.
More than half the projects will be community solar projects that lock in electricity price discounts for low- and moderate-income consumers, including one already operating in Worcester, Mass.
“From an impact lens, we are money by the people, for the projects for the people,” Plankton’s Daniel Giuffrida told ImpactAlpha.
Because of the size of the projects, the joint venture is able to take advantage of federal tax credits through at least 2027 or, in some cases, 2031.
Gratitude’s Rebekah Saul Butler said the arrangement blends tax-advantaged cash yield with reduced pollution, lower energy costs, and expanded access for low- and moderate-income households.
The fund shows “how impact-oriented investors who are nimble and understand the context are continuing to harness IRA incentives and tax-credit transferability to mobilize capital into meaningful climate infrastructure,” she said. “Basically, when a lot of ‘pause’ is happening, we are moving rapidly ahead!”
