# **How the IRA Tax Credits Are Transforming Solar Financing in 2024**
The solar industry is evolving rapidly, and one major driver of this change is the **Inflation Reduction Act (IRA)**. This legislation has made financing solar projects easier than ever by allowing tax credits to be transferred, creating new opportunities for investment.
Recently, a major solar developer secured a **$140 million tax equity investment** to fund solar, energy storage, and EV charging projects. This deal is part of a larger trend where **solar companies can now “sell” their tax credits to corporate buyers**, freeing up capital and accelerating clean energy deployment. This is a game-changer for home and commercial solar alike.
## **What Does This Mean for the Solar Industry?**
Traditionally, financing large-scale solar projects required solar companies to partner with investors that had large tax liabilities to offset. The IRA simplifies this by allowing renewable energy developers to **transfer tax credits directly for cash**. This has led to huge growth in the market:
– **The total market volume for tax credit transfers tripled in 2024**, reaching nearly **$30 billion**.
– **Pricing for tax incentives increased**, making investments in solar even more attractive.
Original Article: https://pv-magazine-usa.com/2025/03/12/dsd-renewables-closes-140-million-ira-tax-credit-transaction/
