COVID-19 is Harming Tax Equity Financing

• At the outset of the COVID-19 pandemic, we heard scattered reports of medium- and long-term decreases to the availability of tax equity financing, as well as those who faced immediate challenges. Since July, those reports have become widespread as companies throughout the solar industry face a financing shortage.
• A report from Bloomberg New Energy Finance states that up to $23 billion in clean energy investments could dry up as a result of tighter tax equity markets, representing 31 gigawatts (GW) of solar and wind projects.
• Between Q2 2019 and Q2 2020, net income decreased by a weighted average of 74% for the top 4 U.S. tax equity investors.
• Individual financiers have left the market entirely, suspended investment in new deals, or significantly rolled back their investments.
• By some estimates, tax equity financing could decrease in the range of 50%.