An Analysis of the Costs, Benefits, and Implications of Different Approaches to Capturing the Value of Renewable Energy Tax Incentives

Technical Report · Wed Apr 09 00:00:00 EDT 2014

DOI:https://doi.org/10.2172/1134230· OSTI ID:1134230

Bolinger, Mark

This report compares the relative costs, benefits, and implications of capturing the value of renewable energy tax benefits in these three different ways – applying them against outside income , carrying them forward in time until they can be fully absorbed internally, or monetizing them through third-party tax equity investors – to see which method is most competitive under various scenarios. It finds that under current law and late-2013 market conditions, monetization makes sense for all but the most tax-efficient project sponsors. In other words, for most project sponsors, bringing in third-party tax equity currently provides net benefits to a project.

• Research Organization: Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
• Sponsoring Organization: Environmental Energy Technologies Division
• DOE Contract Number: DE-AC02-05CH11231
• OSTI ID: 1134230
• Report Number(s): LBNL-6610E
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY