Tech giant Microsoft and Pivot Energy, a renewable energy provider, have announced a 5-year framework agreement to develop up to 500 megawatts (MWac) of community-scale solar energy projects across the United States from 2025 to 2029.
This agreement marks Pivot’s largest Renewable Energy Credit (REC) deal and its most substantial community impact initiative. For Microsoft, it represents the company’s first major distributed generation portfolio, aligning with its goal to cut Scope 3 emissions by over 50% by 2030 through matching customer electricity usage with new renewable generation.
Under this agreement, Pivot will develop around 150 solar projects across approximately 100 communities in 20 US states, including Colorado, Maryland, Illinois, Delaware, Pennsylvania, and Ohio. Microsoft will purchase the project RECs for a 20-year term, with the initial projects expected to launch before the end of 2024.
The collaboration elevates Pivot’s community impact efforts, with each project incorporating notable community benefits. Pivot will focus on four key initiatives: enhancing subcontractor diversity, collaborating with workforce development organisations to train and hire local diverse talent, partnering with Sustain Our Future Foundation to invest in equitable community initiatives, and boosting energy bill savings for low-income subscribers of community solar projects.
“An economy fueled by clean, distributed energy can do more than provide power at low cost; it drives growth and success in communities across the nation. This collaboration between Pivot Energy and Microsoft exemplifies the power and impact that distributed generation can have,” said Tom Hunt, CEO of Pivot Energy.
Adrian Anderson, GM, Renewables, Carbon Free Energy, CDR, Microsoft said, “We believe the clean energy transition can and should benefit communities across the United States that have been historically excluded from economic opportunity. Through our work with Pivot Energy and with its commitments to driving community impact, this collaboration helps to build more inclusive, local economic growth across 100 communities while addressing the sustainability needs and opportunities within those communities.”
Over the next 20 years, these 500 MWac projects are expected to generate over 1 billion kilowatt-hours of electricity annually, enough to power approximately 90,000 homes each year. This is equivalent to removing about 165,000 gas-powered passenger vehicles from the road annually.