By Frank Andorka, Senior Correspondent

As the tax incentives begin to wind down, it’s even more important than ever to be able to identify investors who can afford to take on sufficient tax equity to consummate solar projects.

To do the due diligence to figure out who is currently interested in using equity to fund the project, however, can often increase costs and render deals undoable.

Which is why having a company like kWh Analytics, a solar risk manager, do some portion of the work for you is such a boon. This morning, the company released its Solar Lendscape for Tax Equity, a free resource that profiles 28 tax equity investors. For developers looking to raise capital, the Solar Lendscape catalogs the industry’s most active debt and tax equity investors, including details on check size, target market segments, and product type.

The industry’s first Solar Lendscape was released in June 2018 and initially focused exclusively on providers of debt. Following industry interest, kWh Analytics developed Solar Lendscape for Tax Equity to also include an overview of tax equity investors.

Project development is known to be a complex engagement in which the rules and variables regularly change. One of the most important variables for a developer to track is the availability of capital. Leveraging their experience working with investors, kWh Analytics built a simple, free tool to help developers assess the investor landscape and find the right partner for their projects.

“Solar Lendscape should prove a useful tool for developers trying to raise capital for their projects,” says Keith Martin, Partner at Norton Rose Fulbright. “It was inevitable that someone would create an internet portal to help with that process.”

Fast facts from the Solar Lendscape for Tax Equity:

• Most organizations are using partnerships as a preferred structure.
• Nearly a dozen investors are investing in community solar.
• There was an influx of new tax equity providers in 2017, following the extension of the investment tax credit in 2016.

By Frank Andorka, Senior Correspondent

Even the most experienced tax advisers may not know how to navigate the complex matter of solar tax incentives and credits. That’s why it’s important to have solar-specific experts weigh in on projects. In particular, with the investment tax credits starting to phase out, understanding tax incentives becomes all the more critical.

Oh, if only there were a guide of some sort that people could use to figure it out.

Enter the Solar Energy Industries Association, which has been putting together various versions of a guide for the last 20 years. Now they’ve released Version 9.0, the first comprehensive update of the SEIA Solar Tax Manual since 2016.

Among several updates, the new guide incorporates the commence construction guidance issued by the IRS earlier this year and includes the effects of the “Tax Cuts and Jobs Act” enacted at the end of 2017.

“Given all of the recent changes, the demand for this resource has never been greater,” said Abigail Ross Hopper, SEIA’s president and CEO. “This comprehensive document provides SEIA members a leg up, as it explains and fully outlines the potential tax benefits and deal structures for solar projects.”

Developed with the help of Keith Martin at Norton Rose Fullbright US LLP, the SEIA Solar Tax Manual covers tax credits for both commercial and residential solar projects, tax credit bonds, loan guarantees, low-interest loans and grants, state tax considerations, and more.

“The SEIA Tax Manual is a valuable SEIA member benefit,” said Lee Peterson, Senior Tax Manager for CohnReznick’s National Renewable Energy Practice. “It is incredibly valuable because it collects in one place the primary federal tax rules and concepts that drive the industry, while being easy for non-tax specialists to read and use.”

The SEIA Solar Tax Manual is a SEIA members-only benefit. To view the executive summary and learn more about becoming a SEIA member, go here.