Renew Energy Partners Leverages Newly Approved Rules Under the Inflation Reduction Act with Sale of Energy Tax Credits

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Jul 16, 2024, 08:00 ET

BOSTON, July 16, 2024 /PRNewswire/ -- Renew Energy Partners ("RENEW") announced today the sale of earned energy tax credits to a private buyer represented by Foss & Company. Utilizing the recently approved transfer provisions of the Inflation Reduction Act, RENEW continues to establish new financial models for clients in the building decarbonization space, with this sale building on the initial $10M+ investment in a decarbonization and resilience project at a 1,600-unit Manhattan housing co-op. The tax credits were generated by a 1.75 MW Combined Heat & Power (CHP) system project funded, designed, procured, built, and owned by RENEW.

Under the new provisions of Section 6418 of the Inflation Reduction Act, clean energy credits became transferable. This allows eligible businesses to transfer certain credits to third parties in exchange for immediate funds, helping businesses and properties to benefit from tax incentives even if they lack the tax liability to fully utilize the credits themselves. The sale of credits generated from this project maximizes the value of new clean energy technology projects for both customers and investors.

"The sale of earned energy tax credits generated by the Manhattan co-op decarbonization and resilience project demonstrates the clear ongoing benefits generated by the project investment. RENEW continues to show the capability of our projects to generate recognizable value throughout their lifecycle and remains adept at capitalizing on this value for the benefit of our customers and investors," said Charlie Lord, Principal and Co-founder of RENEW.

"For more than 40 years, we've been unlocking the potential of tax credits to help drive sustainable investments for our clients. This sale from the RENEW project is just another example of the ways we can both maximize returns for our buyers while simultaneously shaping a sustainable future," said Bryen Alperin, Partner and Managing Director of Foss & Company.

The credits for this project were generated by a 1.75 MW CHP system designed to deliver over 7 million kWh/year of electricity and 40,000 mmBtu/year of thermal energy to the housing co-op's 1,600 apartments and first-floor retail spaces. The system consists of three separated distributed energy plants to supply power and thermal energy to four buildings across the co-op's campus. These plants are designed to meet the campus's domestic hot water heating system's pre-heating and pool heating loads throughout the year. They are also designed with black start capability to provide islanding operation for extended periods of time in the event of a power system outage. The estimated climate impact of the project is a reduction of 189 Mtons of CO2 per year.

Renew Energy Partners, LLC ("RENEW")
RENEW is a nationwide distributed generation, microgrid, and energy efficiency company that provides turnkey solutions for decarbonization. RENEW helps customers reduce carbon and greenhouse gas emissions with financially compelling solutions that activate projects including HVAC retrofits, lighting updates, building management system upgrades, and onsite clean energy generation and battery storage. Visit https://renewep.com/

Foss & Company ("Foss")
Foss provides expert, informed tax credit investment services that transform communities, preserve history, and create a sustainable future while delivering capital to their clients. Foss manages more than $1.5B in tax credits and has deployed tax equity in excess of $8B. Visit: https://fossandco.com/

SOURCE Renew Energy Partners LLC