STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 1, 2024--
Altus Power (NYSE: AMPS), the largest commercial scale provider of clean electric power, today announced the successful structuring of a groundbreaking tax equity transaction and partnership model with its existing partners. This transaction marks a significant evolution for Altus Power, which maximizes market efficiency and competitiveness in structuring renewable energy project financings.
The deal is notable given its innovative structure, which allocates a portion of the investment tax credits (“ITCs”) from recently completed solar projects to an existing partner through a traditional tax equity partnership, consistent with those which Altus has formed in the past. However, in a first-of-its-kind move for Altus Power, the new structure leverages the flexibility created in the Inflation Reduction Act to directly transfer a majority of the ITCs from the tax equity partnership to other partners of Altus Power with significant tax capacity. This hybrid approach enhances Altus’ flexibility and expands the market for Altus Power to place ITCs with new tax partners.
"We are proud to pioneer this innovative tax credit transaction that not only allows us to respond to the dynamic tax equity market conditions but also to continue to offer a highly competitive structure for our partners," said Abhi Parmar, Head of Investment and Structured Finance, Altus Power. "By incorporating the ability to transfer tax credits, we are unlocking new opportunities for value creation and expanding relationships with additional Altus Power partners who have interest in acquiring investment tax credits via direct transfer.”
The transaction underscores Altus Power’s commitment to remain at the forefront of market innovation while continuously optimizing its financial structures to benefit both partners and stakeholders. As the renewable energy landscape evolves, Altus Power remains dedicated to finding creative solutions that drive success and sustainability.
About Altus Power
Altus Power, based in Stamford, Conn., is the largest commercial-scale provider of clean electric power serving commercial, industrial, public sector and Community Solar customers with end-to-end solutions. Altus Power originates, develops, owns and operates locally-sited solar generation, energy storage and charging infrastructure across the nation. Visit www.altuspower.com to learn more.
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Jenny Volanakis
mediarelations@altuspower.com
Source: Altus Power, Inc.
