Most of the climate solutions needed to slow carbon change already exist. Getting customers to adopt them is another matter, especially now that government incentives for clean technologies have been throttled back.
“Risk is a barrier, cost is a barrier, uncertainty is a barrier,” says Kate Frucher of The Clean Fight.
Backed by New York State Energy Research and Development Authority, The Clean Fight has been testing the catalytic impact of grant funding to accelerate deployment of climate solutions in New York State for the past five years. The nonprofit has now teamed with Builders Vision and Breakthrough Energy Ventures to expand the program nationally.
Builders Vision’s philanthropic arm has anchored the new Deployment Grant Fund, which aims to raise $10 million to accelerate climate solutions. BEV is providing technical expertise.
‘First of many’
The fund will make grants of $50,000 to $250,000 to scale energy innovation and resilience projects in buildings and pave the way for additional capital and opportunities. “One of the most impactful uses of these small-dollar grants is unlocking additional funding to support projects,” Frucher told ImpactAlpha.
The grants, she says, can be used to lower the upfront costs of initial deployments, enable developers and customers to prove out new business models, and provide corporate or project level credit enhancement for what she calls “first of many” projects.
In New York, for example, a $90,000 grant enabled an affordable housing provider with more than 55,000 units to test out energy management software from startup Runwise in 14 buildings. After saving 20% in energy costs, the real estate company deployed it across its whole portfolio. Two other property managers followed suit, and Runwise went on to raise a $19 million series A round.
“This fund shows how small but catalytic grants can unlock larger investments, accelerate market adoption, and bring forward the sustainable infrastructure our communities and economy urgently need,” said Amanda Goldberger of Builders Vision.
Pilot program
The backing by Builders Vision represents one of its first grants as it maps out a strategy for funding clean energy, one of its three focus areas alongside oceans and food and agriculture.
“We’re looking at really utilizing our capital collectively, from philanthropy to market rate in a way that helps to accelerate these sectors,” says Goldberger, who heads Builders Vision’s philanthropic strategy.
The Deployment Grant Fund is reviewing an initial batch of grant applications from startups with ready-to-scale solutions for reducing building emissions for a pilot program. The goal is to come up with solutions and business models that can speed adoption and be replicated broadly.
