Phase down of solar incentive

Make the most of your solar deal

The race is on for solar investors, developers and others looking to add more renewables to their portfolio before the phase down of the investment tax credit (ITC). If you’re in this camp, the desire to qualify for higher tax credits – before they march toward lower levels over the next four years – is likely putting your plans into fast forward. Meanwhile, there are complexities surrounding these solar projects that can be navigated smoothly, with the right strategy. From valuation and tax, to accounting and modeling, there are many important considerations to evaluate as you move toward the finish line.

Are you asking the right questions?

There are so many questions to consider as the window of opportunity narrows to qualify for the investment tax credit or begin building solar projects. Here’s a snapshot of some key questions during different stages of your deal.

  • Is there intangible value related to a Power Purchase Agreement (PPA) or other revenue contract that needs to be separated from the value of the tangible property?
  • Are forecasts (i.e., generation, price curves, expenses) consistent with market participant expectations?
  • What “begun construction” method (physical work of a significant nature or the 5 percent safe harbor) is the most beneficial?
  • Are key project terms appropriately reflected in the project model?

View our report to see the other key questions you should consider pertaining to valuation, tax, accounting and modeling.

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Michael (Casey) A. Herman

Michael (Casey) A. Herman

Energy, Utilities & Mining Co-leader; US Power & Utilities Leader, PwC US

Jeremy R. Fago

Jeremy R. Fago

Principal, Power & Utilities Deals Leader, PwC US

Kenyon Willhoit

Kenyon Willhoit

Power & Utilities Deals Principal, PwC US

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