Black Bear Energy, Evergrow announces first successful solar tax credit transfer from REIT
Black Bear Energy, a renewable energy company, and Evergrow, a clean energy financing firm, announced their first successful solar tax credit transfer from a Real Estate Investment Trust (REIT).
Executed on Evergrow’s platform, this deal includes several solar projects installed on multifamily properties in California and Washington, DC. The projects have a total capacity of 556 kW and range from 66 kW to 195 kW per project.
Black Bear said that this transaction will lead to greater REIT involvement in renewable energy initiatives and enable the monetization of the investment tax credit, thereby accelerating the adoption of on-site renewables in the commercial real estate sector.
Drew Torbin, Founder and President of Black Bear Energy, said, “Prior to this transaction, clients would evaluate project returns with and without the upside from the sale of the tax credit. With this transfer, we have proof of concept that demand exists for credits of this size and risk profile.”
Also read: UK Pension funds prefer diversified renewable energy investments, survey reveals
James Richards, CEO of Evergrow, added, “We are thrilled to collaborate on this pioneering approach to tax credit financing, tailored to commercial real estate’s unique needs when making sustainable investment decisions.”
Black Bear Energy’s statement added that without Evergrow, REITs would struggle to identify buyers for their tax credits, especially for smaller-scale projects.
By leveraging technology to create a modern platform for clean energy finance, Evergrow is enhancing access to funding for REITs investing in solar systems of all sizes.
By unlocking tax credit financing for REITs, Richards also said that the two companies are forging a new path for improved returns that simultaneously support the commercial real estate sector’s sustainability objectives.
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