Alternus Clean Energy, Inc. announced on October 23, 2024, the completion of its first tax equity transaction utilizing the investment tax credit (ITC) structure introduced in the Inflation Reduction Act (IRA). This marks a significant milestone in the company's financing strategy for its clean energy projects.
The transaction, executed by a wholly-owned subsidiary of Alternus, involved a tax credit transfer of approximately $1.74 million from 2023 ITCs. The credits were generated from the Omohundro Solar Project and White's Creek Solar Project in Tennessee, which provide energy for Metro Water Services.
Proceeds from the tax credit transfer were allocated to cover transaction costs and to pay down senior debt on these projects. This move further improves the overall equity position of Alternus's consolidated balance sheet, reducing capital required for future projects.
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