Tax credits have been a go-to move for the U.S. government to incentivize renewable energy project developers for years. Yet substantial profits are ending up in the pockets of the corporate banking industry.
As of last year, the renewable tax equity market represents a $20 billion industry for big banks.
The timing is auspicious for financial lenders since President Joe Biden’s retooled Build Back Better Act includes an additional $550 billion in clean energy incentives.
Historically, credits for renewable projects have been used to entice new investors to jump on the green energy bandwagon.
Yet because of the lack of practical use on the front end, many entrepreneurs seek tax equity investment partners in exchange for working capital to get the project rolling….