Clean energy finance company Evergrow announced today that it has completed the funding of a clean energy tax credit transfer on its platform. This announcement comes on the heels of the recent publication of tax credit transfer guidance by the IRS and the recent report by Bank of America of its commitment to purchase $580 million of clean energy tax credits.
Tax credit transfers are a new way to fund clean energy development in the US. These transactions were enabled by the Inflation Reduction Act of 2022 (IRA), the largest investment in clean energy in US history. With the IRA, developers, and owners of clean energy projects can sell their tax credits to raise funding. With demand for clean energy tax financing expected to exceed $85 billion by 2031, this funding helps pay for the cost of building clean energy projects, such as solar power, battery storage, electric vehicle chargers, and more.
The developers of clean energy projects often struggle to access tax credit funding, especially for projects on a smaller scale. By using technology to build a modern platform for clean energy finance, Evergrow is unlocking greater access to funding for developers of all sizes and accelerating our transition to a sustainable economy.
KEY QUOTES:
“We feel grateful to have reached this milestone. Our goal is to become the leading funding provider for clean energy, powered by modern software. Today’s milestone takes us one step closer to that goal.”
— James Richards, founder and CEO of Evergrow
“We’re thrilled to have partnered with Evergrow on this groundbreaking transaction. Evergrow gave us certainty of funding with a clear timeline and simple process. We look forward to growing our business with the funding we’ve received so we can bring more clean energy to our communities.”
— Matthew Coleman, CEO of Davis Hill Development, a developer of clean energy projects and an Evergrow customer; Davis Hill Development built and owns a commercial solar installation in Connecticut, which generated tax credits under the IRA that were sold for cash with Evergrow.
