Greenbacker Capital Management (GCM), a leading renewable energy asset manager, has successfully completed a groundbreaking $148 million tax equity financing commitment with RBC Community Investments. This commitment, one of the first tax equity deals utilizing the solar production tax credit (PTC), is instrumental in supporting one of GCM’s largest solar projects.

In the rapidly growing renewable energy industry, solar PTC deals remain relatively scarce. While wind energy projects have long benefitted from the PTC, it was not until the passage of the Inflation Reduction Act (IRA) that this tax credit was extended to solar power.

GCM has allocated RBC Community Investments’ $148 million investment towards financing its largest renewable energy endeavor to date: the 240 MW DC Appaloosa Solar 1 project. This utility-scale solar plant, located in Iron County, Utah, broke ground last year and serves as a significant revenue generator for the area. Additionally, it supports the creation of clean energy jobs during construction and funds a scholarship program for local students pursuing their career goals.

With an impressive track record of successfully executing tax equity investments, GCM has brought numerous tax equity-financed renewable projects online, relying on the federal Investment Tax Credit (ITC) for its solar ventures. However, this collaboration with RBC Community Investments represents GCM’s first venture involving the newly extended solar PTC.

Charles Wheeler, the President of GCM, expresses his enthusiasm for this significant milestone, stating, “Partnering with RBC Community Investments to complete one of the first ever solar PTC deals and finance our largest project to date is more than an important milestone for GCM, it’s an essential step forward for the energy transition. This is proof positive that the landmark IRA legislation is accelerating a clean energy future.”

Prior to the IRA, solar projects were only eligible for the ITC. Since its enactment, solar projects now have the option to choose between the ITC and the PTC. At present, the solar PTC provides a credit of 2.75 cents per kWh for electricity generated by solar energy and other renewables.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.