Soltage, an independent power producer operating in the distributed utility-scale solar and battery energy storage market, closed a $525 million tax credit investment agreement.
The company specializes in development, financing and operation of solar and storage assets. Soltage said the financing includes the purchase of investment tax credits over two years, arming the company with capital to advance construction of its 2 GW pipeline of solar and storage.
The transaction is expected to directly fund the next 260 MW of the company’s asset deployment. The funding deal includes a commitment from a Fortune 500 company to purchase tax credits through 2026.
The New Jersey-based company also announced the close of a $260 million construction and term debt financing facility earlier this year.
Soltage’s projects are typically smaller-sized utility-scale solar projects. Rather than investing in the 100 MW+ market, it focuses on distributed projects. For example, the company developed the Agate Bay project, located in Eagle Point, Oregon. The 12.8 MW DC ground mount solar system is comprised of approximately 34,000 solar panels that produce 21,831 MWh per year.
The company has developed more than 125 solar projects and manages over 450 MW of total distributed generating capacity. Its portfolio includes a mix of ground-mounted, large rooftop and parking canopy installations. Soltage’s customers include commercia and industrial customers, government, real estate, schools, utilities and community solar.
Tax credits
Tax credit deals are expected to remain a key source of funding for the industry until they expire in the coming years. Market specialist Crux projects the clean energy tax credit market will reach $60 billion, even with broad challenges.
Of the more than $7 billion in solar projects marketed, utility-scale accounted for nearly 76% of tax credits sold in the first half of 2025 by volume. Residential solar made up just over 16%, while commercial-industrial and community solar combined for just under 8%.
Across all project types, from utility-scale to residential, the price per dollar of tax credit generally increased with transaction size. Utility-scale projects showed the least variation, starting at about $0.937 on the dollar. Commercial portfolios had the widest range, from about $0.88 to above $0.93 on the dollar, said Crux.
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This is a great article! It offers valuable insights into the solar industrys financing challenges and opportunities, especially regarding tax credits. The focus on distributed solar projects and the market data were particularly informative.