“We would love to go green, but who is going to pay for it?”
With any development project, financing and capital are key points in every conversation.Â
Navigating a large-scale development of renewable energy is certainly no different.Â
We have met with hundreds of development groups, from well-funded corporations to private landowners. The conversation always involves capital and what payment looks like.
“What about all of the Government incentives and rebates?”
The Inflation Reduction Act, passed in 2022, has quickly become a center point in renewable energy development.Â
Frequently heralded as the single biggest piece of legislation passed since FDR’s New Deal, it’s focus on transitioning the U.S. to a “clean energy economy” has huge incentives for this industry.
- 30% tax credit on solar and wind systems
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- 30% tax credit on Energy Storage Systems
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- Extra 10% for using American made products
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- Additional 20% for serving low income and Tribal areas
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- Funding for Work Force Training
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The Opportunity
Traditionally tax credits like these are best for large developers with high level cash flow and the need for credits at the end of the year … However, we saw an opportunity to use these in the front end as a financial instrument.
We helped create and actively participate in a secondary market for tax credits, where the credit can be sold and the funds used to finance the job itself.
Along with Tax credits, many grants and rebates from utilities can also be available, depending on scope and location of your project.
We Will Find a Solution!
Where there is a will, there is a way. Don’t get discouraged by the amount of complicated applications and excess noise. Astera Energy is confident we can help you find a way forward with a financing/capital plan that makes sense to make your development worthwhile, not just for the environment, but for your bottom line.