The American Family Insurance Institute for Corporate and Social Impact, a venture capital investment unit of Madison-based American Family Insurance, is investing in a Cambridge, Massachusetts-based company focused on delivering affordable renewable energy to households across the U.S.
Solstice Power Technologies Inc., which developed a subscriber management software that connects energy users to shared solar farms, recently raised $3.1 million from investors, including American Family. The AmFam institute invests in entrepreneurs and companies that create economic opportunities and close equity gaps in America.
The funding will be used to expand Solstice’s operations to additional states in 2021. Initially, Solstice will focus on Illinois, Massachusetts, New York, Maine and New Jersey, with more states quickly following, the company announced. The company partners with solar farm developers and uses its software to handle customer acquisition and management for the gardens they construct. The farms are installed in centralized locations and allow local residents to enroll in a portion of the energy use for free in hopes of lowering their monthly utility bill.
“Solstice is a mission-driven company that shares our desire to close equity gaps in America by making solar energy available to every American," said John McIntyre, managing director of the American Family Insurance Institute for Corporate and Social Impact Fund, in a statement. "Community solar saves consumers money on their current energy bills today while simultaneously building community resilience. Solstice knows how to deliver the power of the sun to underserved communities and we fully embrace that goal moving forward."
Co-founded and led by women of color, Solstice has worked on 17 community solar projects serving a network of 20,000 customers in New York, Massachusetts, New Jersey, and Washington, D.C., In 2019, the company said it was expanding its services to California.
“The benefits of renewables have mainly accrued to higher-income homeowners over the last several decades, and there has never been a more urgent time to democratize access to the green economy,” said Steph Speirs, Solstice co-founder and CEO, in a statement. “Solstice has worked for years to put solar within reach of excluded households, and we are excited to partner with our investors to accelerate an equitable transition to clean energy.”
