Distributed Solar Development (DSD) has acquired a 763 kW community solar project in an old industrial warehouse in Brooklyn, New York, which was renovated into an indoor community football facility using a combination of local incentives. The project, initiated by Manhattan-based developer YSG Solar, will provide residents with access to clean, renewable energy at discounted rates, as well as a new recreational resource for the community’s children and families.
“DSD is extremely proud to be a part of this unique project that brings all the benefits to the community,” said Jon Morton, VP Acquisitions at DSD. “YSG Solar has done a great job of leveraging incentives to bring renewable energy to a disadvantaged community while improving the neighborhood.”
Located in the East New York Opportunity Zone and in the process of transitioning tenants, the old warehouse was a perfect fit for the solar project and community renovation. Taking advantage of New York’s Local Act 96, which created PACE funding to fund relevant upgrades, and Local Act 97, which sets carbon reduction targets for large buildings, YSG set the course for a full-scale rehabilitation of the warehouse to meet the needs of the new long-term tenant, Sofive, an operator of futsal facilities.
“Urban development and construction are of course subject to many complexities. Including multi-decade roof leases adds a whole new layer. The partnership between DSD, the owner of the property, and the New York City Economic Development Corporation (NYCEDC) was critical to the success of this project,” said David Magid, Managing Partner at YSG Solar. “Ultimately, the East New York Community Solar Garden will support the clean energy transformation in New York City.”
The project quickly caught the attention of city economic officials and was selected as the first solar project for NYCEDC’s Accelerated Sales Tax Exemption Program (ASTEP), which offers a sales tax exemption of up to $100,000 for industrial construction or renovations in underserved communities. . The ASTEP program is administered by the New York City Industrial Development Agency (NYCIDA). The NYCIDA is administered by the NYCEDC.
“New York’s recovery depends on a green future. With projects like the East New York Community Solar Garden, our city is bringing more clean, renewable energy to residents and businesses,” said Rachel Loeb, president and CEO of the New York City Economic Development Corporation. “We help create a blueprint for policies that encourage smart redevelopment and meet both business and sustainability goals. We are excited that the residents of Eastern New York will reap the financial, environmental and recreational benefits of this solar project for years to come.”
Sofive takes about 30% of the energy produced on site, while the remaining energy is distributed to single-family homes and tenants in the area. PowerMarket manages the subscriptions.
DSD and YSG are collaborating on an additional 10 MW of solar projects in New York State, which are expected to be ready for construction by the end of 2021.
News item from DSD