Unlocking the Distributed Energy Opportunity with 38 Degrees North

Ryan Bennett, Managing Director at 38 Degrees North, spoke at the 2025 S2G Summit about his firm’s approach to community solar, its strategic focus on certain energy markets, and more. 

Key Takeaways

1. Lean, Capital-Efficient Approach to Community Solar 

38 Degrees North is focused on building a repeatable, scalable model in the community solar market. Rather than acting as a traditional vertically integrated developer, 38DN aggregates projects from local partners, supplies early-stage capital, and manages them through construction to operation. The firm prioritizes lean operations, partnering with regional developers to avoid the overhead of building out local teams. 

2. Strategic Focus on Retail vs. Wholesale Energy Markets 

38DN deliberately avoids large-scale wholesale projects due to long interconnection timelines, high capital intensity, and greater market volatility. Instead, it targets retail-priced community solar, where energy pricing is more stable and indexed to rising electricity rates — providing attractive, inflation-linked cash flows. 

3. Community Solar Offers Speed and Scalability 

Community solar allows quicker project development (1 – 3 years), access to state-level incentives, and broad customer participation — including low-to-moderate income households without roof space. While these projects are operationally complex (managing subscriber billing and credit risk), they also deliver higher revenue potential and are increasingly attractive to institutional capital once stabilized. 

4. Flywheel Model of Equity Recycling 

38DN employs a flywheel model, using equity to acquire and develop projects, recycling capital post-stabilization to fund new opportunities. This model enables continuous growth without requiring large balance sheet commitments, preserving flexibility and capital efficiency. 

5. Differentiation Through Partnership and Agility 

The firm differentiates itself by being a nimble, relationship-driven investor that values problem-solving and collaboration over scale. Its emphasis on being a ​“people-first” organization enables it to respond quickly to market shifts and build long-term value through aggregated, stable operating cash flows.