Aspen Power Closes Inaugural Solar ITC Transfer Deal

Aspen Power Leverages ITC Flexibility to Unlock New Financing Opportunities for Solar Projects

NEW YORK--(BUSINESS WIRE)--Aspen Power, a leading distributed generation platform dedicated to building the clean energy future, today announced the successful closing of the company’s first solar Investment Tax Credit (ITC) transfer deal. The transaction with private investor Dan Kalafatas monetized the ITCs generated by five projects located across California and New York.

“This ITC transfer deal is a pivotal milestone for Aspen Power, underscoring our ability to navigate the evolving complexities of solar finance,” said Bill DeLong, Chief Financial Officer, Aspen Power. “By leveraging this innovative structure, we not only fortify our existing portfolio but also unlock new pathways for future growth and strategic development. This transaction sets a precedent for how Aspen Power will continue to drive value and innovation in the renewable energy sector,” DeLong added.

The transaction’s structure spans both 2023 and 2024 projects, showcasing Aspen Power’s ability to adapt and capture value across multiple tax years. The innovative structure enables Aspen to optimize project returns ensuring steady growth while maximizing the value of the credits.

Recent changes to the Investment Tax Credit (ITC) under the Inflation Reduction Act (IRA) have expanded the flexibility and scalability of financing for solar projects. The extension and expansion of the ITC to allow direct transferability enables solar developers like Aspen Power to transfer tax credits to third-party investors, providing a new way to monetize these credits without relying solely on traditional tax equity investors. By "selling" the tax credits generated by its solar projects to private investors who can use them to reduce their tax liabilities, Aspen Power gains immediate cash flow, which it reinvests into new projects, fueling further growth in the renewable energy sector.

Aspen Power continues to lead the way in distributed generation, having developed or acquired more than 600 renewable energy projects across 26 states in its pursuit to build the clean energy future.

About Aspen Power

Aspen Power is a distributed energy generation platform that is building the clean energy future. We partner with businesses, communities, and others in the industry to develop, construct, own, and operate renewable energy assets. Our experienced team is passionate about solving our clients’ energy challenges throughout the U.S. For more information, please visit aspenpower.com.