Google and EDPR NA Distributed Generation, the distributed generation (DG) business unit of EDP Renewables North America (EDPR NA), have signed a framework agreement to develop over 80 distributed solar projects of 500 MW capacity.

The initiative is made possible partly due to the Inflation Reduction Act (IRA) passed in 2022, which includes significant tax incentives for domestic energy production and manufacturing. The announcement represents the biggest corporate backing of distributed solar development in the United States.

The agreement would benefit over 25,000 families residing in low-to-moderate-income communities.

The first set of projects will be in Ohio, where Google has a data center campus in New Albany and a Google Cloud region in Columbus.

To finance the Clean Energy Financial Benefit Sharing Program, Google will partially utilize a new type of renewable energy credit (REC) called the ImpactREC.

The partnership’s open book approach will release blueprints to the market, intending to make ImpactREC the defining incentive methodology that enables localized renewable development linked with environmental justice.

The ImpactREC leverages these incentives to provide direct investment into communities throughout the Midwest and Northeast and enables economic benefits for low-to-moderate-income communities.

However, its creation involves additional commitments that certify direct investment in the community and benefits for low-to-moderate-income individuals. The program provides similar financial benefits to community solar in regions that lack supportive legislation.

Apart from the ImpactREC purchase, the Clean Energy Financial Benefit Sharing Program includes establishing a community impact fund valued at $12 million.

Sana Ouji, the Energy Lead at Google, said that the high energy burden disproportionately impacts and is a significant obstacle to achieving an equitable energy transition.

Richard Dovere, the Chief Investment Officer of EDPR NA DG, stated that the partnership with Google has opened a new market segment led by corporations, which aims to overcome the typical barriers associated with the rapid, distributed, and equitable decarbonization of the energy system.

According to a report by the Solar Energy Industries Association and Wood Mackenzie, IRA will help the United States solar market grow 40% or 62 GW of additional capacity over baseline projections through 2027.