Aspen Power, a leading distributed generation platform focused on a clean energy future, has announced the successful closing of its inaugural solar Investment Tax Credit (ITC) transfer deal. This transaction, made with private investor Dan Kalafatas, monetized ITCs generated by five projects in California and New York.
“This ITC transfer deal marks a significant milestone for Aspen Power, highlighting our capability to navigate the complexities of solar finance,” said Bill DeLong, Chief Financial Officer of Aspen Power. “By leveraging this innovative structure, we not only strengthen our existing portfolio but also open new avenues for growth and strategic development. This transaction sets a precedent for our future efforts in driving value and innovation in the renewable energy sector,” he added.
The deal encompasses projects from both 2023 and 2024, demonstrating Aspen Power’s adaptability in capturing value across multiple tax years. This innovative structure allows the company to optimize project returns, ensuring steady growth while maximizing the value of the credits.
Recent changes to the ITC under the Inflation Reduction Act (IRA) have increased the flexibility and scalability of financing for solar projects. The ability to directly transfer tax credits allows solar developers like Aspen Power to sell these credits to third-party investors, creating a new pathway to monetize them without relying solely on traditional tax equity investors. By “selling” the tax credits generated by its solar projects, Aspen Power gains immediate cash flow, which is reinvested into new projects, further fueling growth in the renewable energy sector.
Aspen Power is at the forefront of distributed generation, having developed or acquired over 600 renewable energy projects across 26 states in its mission to build a clean energy future.
