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Corporations Broadening their Approach to Buying Clean Energy

2 minute read

Following passage of tax cut legislation at the end of 2017, Greentech Media reports, "Much of the conversation in clean energy circles..has revolved around a potential shrinking of the tax equity market -- which accounts for between 40 percent and 60 percent of finance for individual solar and wind projects -- because of the reduction in value of renewables credits." According to Greentech Media, however, it appears that - so far at least -  corporate America is showing "continued interest in direct renewables investments." 

As Apex Clean Energy's Chief Commercial Officer, Steve Vavrik, puts it (bolding added for emphasis):

“We’re seeing a doubling of the number of inquiries about investing in projects than we saw last year," Vavrik said. "We haven’t seen a lot of deals announced under this trend yet, but we’re certainly sharing it as a request.”
 
[...]
 
Apex Clean Energy said cost will continue to be central to corporate decision-making on renewables investment. As the economics of clean energy have shifted favorably, so has the mindset around analyzing benefits. 
 
“Corporates are realizing that not all power supply is equal,” said Vavrik. “They’re looking to invest in sustainability.”
 

Also worth highlighting is the comment by Erik Haug, also at Apex Clean Energy, who notes that "We’re seeing the market overall broaden in terms of the products [companies] are looking for and the approach they’re bringing to the table."

In sum, although there's a fair amount of uncertainty following tax reform, Greentech Media concludes - and people like Steve Vavrik and Erik Haug agree - that, "[a]lthough certainty in the market has waned, interest in direct project investment has not." 

 

Topics: Clean Economy