Solar Supplier Diversity

At Sologistics, we believe that advancing diversity, equity, and inclusion in solar and renewable energy is of vital importance. Supplier diversity programs are a key tool in increasing equity and inclusion along the stages of the solar supply chain. Particularly for renewable energy companies, there remains a significant need for increasing state mandates for reporting supplier diversity. Companies that have supplier diversity programs provide opportunities across the supply chain to Minority and Women-owned Business Enterprises (MBWE), Service-Disabled Veterans owned businesses, and other certified small business types. Solar supplier diversity programs are continuing to expand in New York State and nationwide, paving the way for a more diverse clean energy industry and increased equitable opportunities.

 Here are some examples of solar supply chain diversity programs in New York and nationally. For example, through Con Edison’s commitment to supplier diversity, the utility has purchased $322 million in services from MWBE businesses. During the pandemic, Con Ed also purchased over $4 million of PPE from MWBE businesses. New York Power Authority had long supported diverse vendors. NYPA is committed to working with MWBEs and SDVOBs in their contracting and through the competitive bidding processes. PSEG Long Island is also committed to working with MWBEs and SDVOBs, following the New York State requirements for 30% participation of MWBEs in state contracts.

Nationally, National Grid’s Supplier Diversity Program provides a range of opportunities to diverse and sustainable suppliers from business development, mentorship, and certification assistance. In California PG&E’s supplier diversity program has been running for 30 years. Over 40% of PG&E’s procurement is through their supplier diversity program and in 2019 they spent over $3 billion on women, minority, service-disabled veterans, and LGBTQ-owned businesses.

Solar Energy Industries Association (SEIA) has a Supplier Diversity Guide to help solar companies effectively address diversity in their supply chain. According to SEIA,  “it is less common for renewable energy suppliers to be mandated” to track and submit their diversity data to states.  Supplier diversity programs have a positive impact, yet barriers still remain for MBWEs. Procurement opportunities for MBWEs tend to exist primarily for subcontracting on major city or state contracts. Furthermore, MWBE certification processes can be potentially costly or complex. Thus, increasing access to opportunities in solar for diverse stakeholders such as MWBEs remains a priority for an equitable and sustainable solar industry.