The Kresge Foundation’s Social Investment Practice has committed $7 million in new program‑related investments to expand access to clean, affordable energy and strengthen climate resilience in communities that historically suffered from disinvestment. The investments support mission‑driven organizations working in adaptive reuse, community solar, clean‑energy development, and innovative approaches to preserving access to federal tax incentives. 

“These investments are representative of different approaches consistent with a goal of ours, which is to ensure that the promise, benefits and opportunity of clean energy is not dependent on your zip code. In particular, they highlight our place-based approach to building project and market readiness,” said Joe Evans, Kresge social investment officer.

Decarbonizing buildings and revitalizing community assets

Kresge has provided a $3 million program-related investment (PRI) loan to RePurpose Capital and a $400,000 grant to the National Trust for Historic Preservation to help transform underutilized commercial buildings in historically disinvested communities into community-serving spaces. The financing supports adaptive reuse projects that prioritize building decarbonization, revitalize commercial corridors and districts, and preserve cultural value. 

Projects will be sourced through the African American Cultural Heritage Action Fund and RePurpose Capital’s broader pipeline of properties. The investment reaches across Kresge’s Environment, Arts & Culture, American Cities and Detroit Program areas. 

Preserving access to federal solar incentives

A $2 million PRI loan will support Capital Good Fund and its nonprofit subsidiary America Bright as they pilot a financing model that helps community-based solar and resilience hub projects benefit from the federal Investment Tax Credit (ITC). 

This “safe harbor” approach—developed in partnership with the Milken Institute and Avisen Legal—allows nonprofit and community-serving projects to secure ITC eligibility. Kresge’s loan will help Capital Good Fund pre-purchase solar and storage equipment for clean-energy projects at community-serving commercial buildings. By unlocking tax-credit value that might otherwise be out of reach for nonprofit and community-based projects, the investment helps ensure that clean-energy incentives remain accessible to the communities they are intended to serve and that we continue to build examples of clean-energy in action in the communities we support. 

Expanding community solar in New Orleans 

Kresge’s $2 million PRI loan will help launch the Louisiana Clean Energy Fund, a newly established clean energy community development financing intermediary dedicated to closing persistent gaps in access to financing for clean energy projects. Loan proceeds will support the construction of the fund’s first two community solar projects in New Orleans, both of which are designed to benefit low- and moderate-income households. Kresge’s investment—alongside a grant from the Baton Rouge Area Foundation—is expected to help the fund attract additional capital and scale its impact across the state. 

Taken together, these investments highlight Kresge’s approach to using flexible, patient capital to de-risk traditional financing and unlock additional public and private investment for climate resilience projects. 

These investments also reinforce the Environment Program’s mission to help cities combat and adapt to climate change while advancing racial and economic justice. 

“By deploying social investments alongside grants, we are able to support and scale promising approaches to clean energy and climate resilience that center low-wealth communities and communities of color,” said Jessica Boehland, Kresge Environment senior program officer.     

As rising energy costs and environmental vulnerability increasingly confront underserved communities, Kresge’s social investing will continue to be used alongside our environment program team’s program strategy to unlock capital for those places and projects that result in more equitable outcomes.