Image source: Canva.com
The tax transfer and equity market is projected to exceed $40 billion in 2024, with tax credit transfers expected to account for $22-25 billion, according to Crux’s “3Q 2024 Market Update.” In Q3 alone, $7 to $7.5 billion in deals were closed. Solar-related projects made up 45% of these transactions, with standalone solar accounting for 21%, solar-plus-storage for 15%, and standalone storage for 9%.
Crux reported that pricing for tax credit transfers varied from $0.886 to $0.941 per dollar, influenced by deal size, insurance availability, and project risks. The market saw increased interest in large-scale energy storage and solar-plus-storage projects pursuing tax transfers, while larger solar projects continued to rely on tax equity financing for additional depreciation benefits.
Solar energy dominates U.S. capacity additions in 2024, poised for continued growth
Source: Crux
