Reflecting on 2023 and Looking Ahead to 2024

As we settle into the habit of typing ‘2024’ (something we usually master by mid-spring), our team has been reflecting on the successes, curveballs, wins, and challenges of the past year. Our overarching assessment is that in 2023, the momentum behind deploying long-lasting and equitable climate solutions continued. Arriving at this conclusion required us to look past some of the headlines. But it’s an unequivocal fact—and one that should be celebrated, especially because there were some significant macroeconomic headwinds for businesses and households looking to invest in a zero-emissions future.  

In many ways, this positive momentum is a policy story. Here in the U.S., much of the 2023 progress we can count can be traced back—in one way or another—to the rollout of the Inflation Reduction Act’s programs. From new guidance on clean energy tax credits out of the Treasury and the EPA’s call for application submissions for the $27B Greenhouse Gas Reduction Fund, to a seemingly endless stream of DOE announcements of funding for grid modernization, hydrogen hubs, EV charger infrastructure, loan guarantees, the federal government’s investments are catalyzing unprecedented levels of private capital to address the climate crisis. 

Looking ahead to 2024, the policy certainty and economic opportunity created by this flurry of federal activity, plus the potential for steady or lower interest rates, suggests that climate tech VC activity could grow significantly this year. This environment will also create more and lower-cost decarbonization opportunities for households and businesses alike—and funds for the IRA’s home electrification rebates will also start to flow. Instead of bemoaning the challenges of 2023, we are struck by the resiliency that climate tech companies, products, investors, and ideas demonstrated last year. More importantly, we believe they will all emerge stronger and more prepared for growth, profit, and mass adoption in 2024. 

At PVG, we were fortunate to have experienced another year of expansion and impact, and are energized by the year that lies ahead. Our work ranged from building a coalition of community-focused climate organizations to transform the U.S. housing market, to developing new green financial products for households and businesses in the Mississippi Delta, to supporting a late-stage venture focused on eliminating the emissions from food waste. Across all of our projects, we tackled new problems, answered hard questions, and created new opportunities to support the people, nonprofits, and companies working to create a healthier, safer, and more equitable future. 

As we embark on 2024, it already feels like a year that will allow us to dig even deeper into the climate-focused areas we know best, such as home electrification, while expanding our work into new sectors (we’ve got industrial decarbonization, transportation, and ag tech in our sights) with a diverse set of partners and clients. 

So here’s a look at some of the work we’re proudest of in 2023 and what we’re most looking forward to in 2024. And if you have a problem you think we can help you solve, please reach out.  

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Setting a Vision: Building a Powerful Coalition to Transform the U.S. Housing Stock 

When the EPA released three grant competitions for the $27 Billion Greenhouse Gas Reduction Fund, it led to a busy summer and fall for our team. Because the GGRF is a once-in-a-generation opportunity to invest in decarbonization solutions that will reach historically underserved communities, PVG, our clients, and our partners went to work designing, building, and implementing GGRF strategies and solutions that will lead to a healthier planet and greater financial equity. 

As a firm, we supported the submission of a major, multi-partner National Community Investment Fund application by the Power Forward Communities (PFC) coalition. 

PFC is a coalition of five trusted national organizations—Rewiring America, Enterprise Community Partners, Local Initiatives Support Corporation (LISC), United Way, and Habitat for Humanity International—supported by 321 partners and communities across 46 states and every EPA region. This unique coalition joined forces around a goal to reduce emissions and improve the lives of Americans nationwide, by focusing their strategy on American housing infrastructure. American households account for 42% of energy-related emissions, and mitigating those emissions requires action from millions of decision-makers. PFC recognizes that while financing plays an important role in solving our climate challenges, it alone will not be the solution. PFC has built a strategy around generating demand from and changing the behaviors of multi-family owners and developers and single-family households to transform the market. 

Democratizing Clean Energy Solutions: Launching Green Financing Products with a Trusted Lender in the Deep South

With its focus on localized deployment of funds, specifically in low-income and disadvantaged communities (“LIDACs”), the IRA has centered local lenders as the institutions best equipped to deploy capital effectively and efficiently given their deep relationships and trusted roles within their communities.

In 2023, PVG connected with one such lender, HOPE Credit Union, a mission-based financial institution that has been lending to households and communities in the Deep South since 1994. HOPE recognized the role that clean energy solutions in transportation, building efficiency, and power generation could have on the quality of life, health outcomes, and economic well-being of the households and businesses they serve. But, HOPE also recognized that it needed support evaluating the different GGRF opportunities as well as designing and developing the best products in response to these opportunities.

Toward that end, PVG began working with HOPE to assess the desirability, feasibility, and viability of different product solutions. This included exploring member needs and preferences, assessing HOPE’s organizational technology and capacity, and analyzing the political-economic landscape of the local energy markets in HOPE’s footprint. 

During this time, PVG also helped HOPE compile two applications for the Solar for All competition. PVG designed both applications to ensure HOPE could establish loan and lease programs that would deliver rooftop solar, community solar, and solar for multifamily buildings in a way that ensures 20% energy savings for homeowners and renters across all five of the states within which HOPE operates.

Based on our framework of assessment, PVG and HOPE are stepping together into 2024 with a clear vision of what products are the highest priority for the market and what strategies will be the most impactful to get these products to market. HOPE will leverage this work to launch a series of pilots in 2024 to ensure the people of Mississippi, Alabama, Tennessee, Louisiana, and Arkansas can participate in and benefit from this momentous clean energy transition.

Eliminating Food Waste: A Fun Family Activity!  

Thanks to Mill, reducing food waste is now both an important subject in many households and a fun, interactive activity for the whole family. The PVG team had a blast naming our Mills: Good Mill Hunting, Compost Malone, and Crunch MillLady. We’re biased, but this might be PVG’s best work yet—(one team member even got an honorable mention as one of the best names of the year!  

In equally important news, we spent the past year working with Mill to grow their product offering, develop their internal infrastructure, and secure several strategic partnerships. In 2023, PVG helped the finance team with critical growth initiatives including onboarding full-time employees and creating a KPI framework and reporting system that allows for streamlined decision-making and financial analysis. 

Supported by strengthened internal infrastructure, our team also worked with Mill to build and manage an improved FP&A model to help successfully launch Mill’s first DTC device. As the product evolved, our strategic finance team worked on several iterations with the product design team, determined membership pricing, and supported operational logistics. Last year was also a banner year for Mill’s partnerships across the country. PVG provided strategic guidance and analytical support to secure partnerships with both the City of Tacoma and R.City, a full-circle composting service in the Phoenix metropolitan area. 

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As you can tell, we’re pretty busy over here with some very exciting work. So busy even that our 2023 reflection is three weeks late.  But no rest for the weary when you are as committed as we are to building a cleaner, more equitable world.