Basis Climate, an emerging leader in the renewable energy landscape, has just announced the closure of a $100 million clean-energy tax credit transfer. This monumental deal, the largest of its kind for the company, sets a new precedent for how clean-energy tax credit transfers can reshape the renewable energy financing sector.
Efficient Market Connection
“A key benefit of our exchange is efficient deal execution,” said Basis Climate Co-Founder and CEO Erik Underwood. According to Underwood, Basis Climate’s innovative digital exchange has the power to connect buyers and sellers of renewable energy tax credits in a more efficient manner. The platform utilizes real-time price discovery and simplified 10-page contracts to reduce friction and cost, thereby facilitating quicker deals.
The Deal in Detail:
While the exact terms and the identities of the buyer and seller remain undisclosed, the sheer size of this clean-energy tax credit transfer cements Basis Climate’s standing in the market. This transaction took place just a month after Basis launched its digital exchange, emphasizing the platform’s capabilities for speedy and seamless deal execution.
Basis’ Comprehensive Services
Basis does more than just play matchmaker; it offers a full-fledged transaction framework along with client support. This ensures that both sides can engage in a clean-energy tax credit transfer with confidence. “We are excited to see the industry as a whole start adapting to tax credit transfers, but we are most excited about providing an efficient and transparent sale process for new buyers unfamiliar with these tax credits,” says the Basis Climate team.
The Bigger Picture: 2022 Inflation Reduction Act
The 2022 Inflation Reduction Act has created a fertile ground for clean-energy tax credit transfers by allowing a one-time transfer to other federal tax-paying entities. Basis Climate expects the annual transfer volume of clean energy tax credits to grow to over $60 billion by the end of the decade.
About Basis Climate
Basis Climate is leading the charge in establishing a digital exchange that streamlines the process of clean-energy tax credit transfers. They aim to create a reliable platform that empowers both buyers and sellers to transact with full confidence.
A company worth watching…
As Basis Climate sets a new standard in the clean-energy tax credit transfer market, it’s clear that their digital exchange is a disruptive force in renewable energy financing. With the backing of major climate investors and a burgeoning market expected to grow exponentially, Basis Climate is a company worth watching. We’d love to hear your thoughts on this record-breaking deal and its implications for the renewable energy sector. Feel free to leave your comments below.
