Structuring renewable energy projects that provide acceptable investment returns is often helped by using feed in tariffs in European and other markets, but tax equity vehicles are more common in the US. Tax equity arrangements can be structurally complicated and difficult to administer, but can also provide double-digit returns when done properly.
These were some of the issues discussed by an expert panel at the AGRION Energy Summit and Sustainability Meeting held this week in New York City. The production tax credit for wind projects – recently extended for one year after much controversy – and the investment tax credit for solar are two tax equity vehicles commonly used in the US to help finance projects. Keep reading →