Companies tapping IRA rules for financing also face difficulties

Companies are leveraging new IRA rules to successfully finance clean energy given that the new tax credit provisions could more than triple the $20 billion annual tax equity market. However,  partnerships with large investors can also prove to be legally complex and costly, demanding significant legal and other due diligence work that can cost “up to 15% of the value of the original tax credit.” The consequence is that financing has been going to the biggest and lowest risk projects.