(Finance) – Orstedthe Danish renewable energy giant, has announced a investment from JP Morgan For 680 million dollars in tax equity financing for a portfolio of solar and storage assets in Texas and Arizona, US. The project portfolio consists of Eleven Mile Solar Center, a 300 MW solar project and 300 MW/1200 MWh storage project in Pinal County, Arizona and Sparta Solar, a 250 MW solar project in Mineral, Texas.
This deal represents one of the largest solar energy and storage tax equity transactions using a combined production tax credit (PTC) and investment tax credit (ITC) structure since the approval ofInflation Reduction Act (IRA) in August 2022.
The tax equity partnership with JP Morgan includes theoption for the transferability of the tax credit. This new tax credit transfer option, created by the IRA, has opened a new market for any business buyer to support clean energy projects and optimize their federal tax bill through the purchase of tax credits, it said in a note.
(Photo: Zbynek Burival on Unsplash)