Renewable Energy Finance: First Solar's $700mn Milestone in Tax Credit Transfer

Fintech Collaboration: Fiserv acquires First Solar's 2023 45X advanced manufacturing production tax credits, focusing on US PV production, at 96% of its value.

Boosted Liquidity: Despite high-interest rates, Morgan Stanley has recently raised First Solar's share price target. Benefiting from IRA 45X tax credits and rising market demand for domestic panels, this capital influx is crucial for reaching its 14 GW capacity goal by 2026.

Tax Credit Momentum: The Inflation Reduction Act of 2021 enables efficient monetization of annual tax credits, simplifying the process. Further, recent guidelines also allow companies to opt for tax refunds for half the 10-year credit duration.

Pioneering Trend: First Solar's move, following Avangrid and Ashtrom Renewable Energy, marks a growing trend in strategic tax credit use in the US renewable sector.

To gain a deeper insight into financing trends at the corporate and asset level globally, request a trial of the Enerdatics Energy Transition Finance database today.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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