Renewable Energy and Tax Equity, Explained

In 2021, tax equity investments drove one in five dollars of renewable energy investment. This article series aims to explain what exactly tax equity is, its history, and its current impact on the energy transition.

It's not just limited or general. Parties in a tax credit transaction weigh decisions about exposure, timing, and benefit. This story clarifies the stations along the journey.

At a deal level, tax equity never looked easy. At an institutional economy-nudging level, its harder still. This installment sets out some structural blocks and ways over them.

The future of tax equity may well run through a channel called "direct pay." which could simplify and expand a lot of what makes the tool valuable. As always, some unknowns come into the picture.