Companies large and small are beginning to invest in solar tax credit deals as a smart tax strategy. Although these investments are smart and relatively straightforward, Zenergy’s team finds itself frequently educating new tax equity investors on a few key deal...
Mid-Size CFO: Monetize Your Tax Bill Companies paying over $200,000 in income tax can turn their tax bill into a profitable short-term investment by becoming a “Tax Equity Investor” in a solar project. Large companies, like Google, have long been able to make tax...
Solar power purchase agreements (PPA) steal a page from the cell phone playbook. In a PPA, the project developer pays to install the solar and, in exchange, the host facility’s owner agrees to buy the solar energy for the next 15 to 20 years. Companies like SunEdison...
Solar PPA developers recognize host facility foreclosure is their big risk. The impact of that risk is bigger than many PPAs realize. Unless your PPA is set up right, a foreclosure does not just mean lost revenue. The foreclosing bank may be entitled to keep the solar...
Tax Equity is a common part of solar project finance deals. Everyone knows “the Tax Equity Investor invests in the solar project and in exchange gets all the tax incentives.” This sounds great, but not everyone knows how this works. People regularly ask Zenergy *how*...
Two Key Federal Solar Tax Incentives Before digging into the mechanics of Tax Equity Investing, you must first understand the underlying tax incentives at play. There are two main Federal tax incentives for solar: 30% Investment Tax Credit. The owner of a solar...
