Solar projects in the United States are awarded a 30% federal tax credit when in compliance with prevailing wage requirements. Another 10% tax credit is added to projects that meet a certain threshold of U.S. domestic content in the project, but navigating compliance can be difficult.
A new partnership between solar equipment providers, an accounting firm and a tax credit transfer specialist aims to streamline the process of being eligible, tax-compliant and monetizing the domestic content bonus. The partnership is intended to support commercial and industrial-scale (C&I) solar projects.
SolarEdge, provider of solar inverters, energy storage and other power solutions has partnered with Enstall, the parent company of racking suppliers PanelClaw, IronRidge and EcoFasten to create a domestic content eligible project development offering.
“SolarEdge’s U.S.-manufactured inverter and optimizer solutions for C&I are designed to be eligible to qualify for domestic content, having already achieved BABA compliance across our commercial product lines,” said John Carroll, vice president of C&I sales, SolarEdge.
The equipment providers are partnering with certified public accountant (CPA) firm Novogradac & Company, which will assist with ensuring compliance. The company will perform an agreed upon procedure (AUP) report, addressing procedures related to domestic content eligibility and streamlining due diligence for potential buyers of investment tax credits.
“IRS guidance […] has introduced specific requirements that developers must meet to qualify for additional tax incentives, and it has not been easy for customers to meet and understand the requirements,” said Josh Morris, a partner at Novogradac & Company LLP. “Novogradac’s AUP performs specific procedures related to this domestic content criteria and assists stakeholders with obtaining key facts that can allow them to make financing decisions on the ITC adder.”
The partnership also connects tax credit buyers and sellers with Crux, which operates among the largest clean energy tax credit transfer marketplaces in the United States. The platform helps owners and developers monetize investment tax credits through all stages of the transaction process.
“This new solution offers a structured approach to both compliance and financial optimization,” added Corey Geiger, chief operating officer of Enstall. “Our goal is to help customers confidently meet regulatory standards while ensuring their projects remain economically viable.”
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