Reunion Facilitates Sale of up to $870M in Section 45X Tax Credits by First Solar
These transactions are one of the largest advanced manufacturing tax credit transfers to date, reflecting the growing scale of the domestic power generation technology manufacturing base.
San Francisco, CA – Reunion, a leading platform for clean energy tax credit transfers, is proud to have facilitated two transactions, entered into on December 6, 2024, for a third-party to purchase up to $870 million in advanced manufacturing production tax credits from Arizona-headquartered First Solar, the Western Hemisphere’s largest solar technology and manufacturing company.
The credits are associated with the fully integrated manufacturing of advanced thin film photovoltaic (PV) solar panels – equivalent to the production of wafers, cells and modules – at certain First Solar manufacturing facilities in both Ohio and Alabama in 2024.
First Solar, which has manufactured in the United States since 2002, operates three manufacturing facilities in Ohio and a fourth in Alabama. The company also operates what is believed to be one of the most extensive solar supply chains in the U.S., using 100% U.S.-made glass and steel. As a result of its American manufacturing footprint, which is expected to include a fifth factory in Louisiana in the second half of 2025, and domestic supply chain, First Solar expects to support over 30,000 direct, indirect, and induced jobs across the nation, representing a payroll of almost $2.8 billion per year by 2026.
Reunion served as a trusted advisor and facilitator throughout the transactions’ lifecycle. The firm identified a suitable buyer and led a thorough negotiation of deal terms between the parties. Reunion also played a key role in spearheading the technical and commercial due diligence process.
“We are excited to have supported these transactions through to close, which underscores our expertise in helping the largest and most sophisticated organizations navigate the tax credit diligence and purchase process. These transactions demonstrate the impact that tax credit transfers can have on strengthening America’s solar manufacturing capabilities,” said Andy Moon, CEO of Reunion.
These transactions are one of the largest advanced manufacturing tax credit transfers to date, reflecting the growing scale of the domestic power generation technology manufacturing base.
Related Articles
.webp)
San Francisco, Sept. 24, 2024 /PRNewswire/ — Reunion, a leading clean energy finance company, today announced that it has facilitated the purchase and sale of over $1.6 billion in clean energy tax credits through Q3 2024.
Drawing on decades of clean energy financing experience, Reunion has transacted across a range of transferable tax credits – §48 ITCs, §45 PTCs, §45X AMPCs, and §30C alternative fuel infrastructure credits – and technologies. "Our team has facilitated dozens of tax credit transfers involving established clean energy technologies, like solar, wind, and battery storage, as well as emerging technologies, like biogas, fuel cells, and EV charging," said Reunion's president, Billy Lee. "Advanced manufacturing and critical minerals, however, have been the largest areas of growth for us. We've executed §45X transactions from $10M to well over $500M."
Reunion recently published a study that estimates the size of the transferable tax credit market, and quantified the total credit market by monetization strategy (transfer, direct pay, retention and transfer). We estimate that over $45B in clean energy tax credits will be generated in 2024. Of this total, Reunion estimates that approximately $21B to $24B will be transferred – a significant increase from the $5B to $7B in transfers Reunion estimated in 2023.
"At the end of 2023, many buyers were hesitant to be 'first to market.' A year later, however, the vast majority of corporate finance and tax leaders are aware of clean energy tax credits, and we are seeing significant demand for high quality opportunities," said Reunion's CEO, Andy Moon. "We are thrilled to see corporations across many industries invest in transferable tax credits."
The influx of new buyers and sellers has created a fast-moving market. When working with Reunion, typical transaction timelines have fallen from over 90 days in Q4 2023, to less than 45 days in Q3 2024.
About Reunion
Reunion facilitates the purchase and sale of clean energy tax credits, and has worked with major corporations to purchase over $1.6 billion in tax credits from solar, wind, storage, advanced manufacturing, and other clean energy projects. Our curated marketplace features billions of dollars in high quality tax credit opportunities, and our team of clean energy finance veterans supports buyers and sellers through each step of the transaction process, with a focus on commercial negotiation, due diligence and risk mitigation.
To learn more, visit www.reunioninfra.com and download our comprehensive handbook on clean energy tax credit transfers.
.png)