Hello everyone!
In our continually evolving world of renewable energy, I get quite excited when I see new advancements and opportunities that solar companies can tap into. Recently, the American Clean Power Association (ACP) announced a partnership with sustainable finance technology company Crux. This partnership holds particular significance for solar companies and anyone looking at solar panels for their home.
So, what’s this all about? Essentially, this is all about making clean energy tax credit transfers more accessible for the industry, particularly solar companies. Not only will ACP’s member companies be able to access discounted transaction fees on Crux’s platform, but they will also gain access to vital Crux data delivered through PowerCasts, white papers, and reports.
Tax credit transfers were made possible by the Inflation Reduction Act (IRA), which allows clean energy developers and manufacturers to sell their tax credits to third parties for cash. Through this, a potent market tool was created to broaden access to capital for clean energy infrastructure—a boon for all those considering a solar array for a home.
And it’s not a small market by any standards! According to Crux’s own intelligence report, the transferable tax credit market is booming, with an estimated $7 billion to $9 billion in transferable tax credits transacted in 2023. They currently account for a third of the entire tax finance market, and Crux projects that by 2031, we could see over $80 billion in solar tax finance, much of which is anticipated to come from transferable tax credits.
The partnership between ACP and Crux was conceived to further boost this growing market. Crux’s founder, Alfred Johnson, had previously served as the deputy chief of staff to Secretary Janet Yellen at the U.S. Treasury Department, providing him with the experience and insight to develop an effective market for transactions of transferable clean energy tax credits.
In the words of Jason Grumet, ACP’s Chief Executive Officer, “Our partnership with Crux will help catalyze accessible funding alternatives for clean energy. By simplifying the ability to monetize tax credits, the industry can invest more effectively and flexibly, bringing more projects, jobs, and investment to communities across the U.S.”
Solar is undoubtedly the future, and this advancement in the solar industry is another step towards making that future a reality. Whether you are a solar company looking to grow or an individual considering solar panels for your home, it’s clear the future of solar power is bright!
If you are considering installing a solar array for home usage, always remember to look into tax credit opportunities provided by initiatives like these. They can make your transition to solar even more beneficial.
Till next time, let’s keep shining a light on solar!
Original Articlehttps://pv-magazine-usa.com/2024/05/02/crux-extends-tax-credit-transfer-discounts-and-support-to-acp-members/
