Photo credit: Department of Energy
Renewable energy tax credits are rapidly becoming the energy transition’s hot commodity, and not just for the solar industry.
Today’s transfer stems from two 50 MW storage projects in Texas, as well as a 20 MW project in Erie County, New York that is interconnected with National Grid and leverages storage technology from Sungrow. This is the first time Key Capture Energy has monetized IRA tax credits, the company said.
Chief financial officer John Bresnahan said the influx of cash will enable “immediate and future” investments in KCE’s project portfolio, and in its expansion efforts around the country.
And Ed Rossier, Enhanced Capital’s managing director and head of climate finance, said in a statement that “tax credit financing for large-scale energy storage projects supports a more reliable and resilient grid and facilitates broader adoption of renewable energy generation across our country.”
KCE’s announcement follows a similar move from solar panel maker First Solar, which last week sold up to $700 million worth of advanced manufacturing production credits to financial services company Fiserv Inc. That deal is thought to be the first significant tax credit financing deal in the solar industry.
Want to know more about how the market for transferable tax credits will work? Sign up for Latitude Media’s Frontier Forum on January 31, featuring Crux CEO Alfred Johnson, who will break down the budding market for clean energy tax credits. We’ll dissect current transactions and pricing, compare buyer and seller expectations, and look at where the market is headed in 2024.