With the phase-out of the Investor Tax Credit (ITC) and other incentive changes on the horizon, the renewable industry is more focused than ever on project finances and long-term viability, for both new portfolios and existing underperforming projects. 

Solar Developers and Independent Power Producers (IPPs) are pushing to get their projects completed and placed in service by December 31, 2027, to avoid losing out on the tax credit (with some projects being able to get an extension until June 30th, 2030, at the latest). 

This is not a flexible goalpost, but a hard deadline, and as industry leaders, we cannot afford to bet our business models on a political shift in the House, Senate, and Presidency. Project finance must adapt to a world with shrinking federal subsidies. This inevitable transition demands meticulous preparation and risk mitigation.

The Industry’s Pivot: Focusing on Fundamentals

The core questions today are: 

  1. How do we secure capital efficiently?
  2. How do we ensure stable revenue over 20 years or more?

These questions highlight a critical need to eliminate subscriber-related financial risks, which include the cost of acquiring customers, the continuous threat of churn, and the risk of collections. 

The Solution: Solar Simplified’s SCPA

At Solar Simplified, we intentionally built our company with a differentiated approach in mind: The Solar Credit Purchase Agreement (SCPA) model. Many of our conversations at RE+25 centered on the SCPA model, As SCPA directly addresses the financial pressures of the post-ITC landscape, many of our RE+25 conversations centered on the model. 

With the SCPA, developers and IPPs benefit from:

  • Zero Upfront Subscriber Acquisition Costs: SCPA    eliminates the need for upfront subscriber acquisition  capital, freeing up vital funds that can be better  deployed in project development, procurement, or  construction.
  • Protection Against Churn: SCPA protects projects against  the high costs, inherent unpredictability and known risks  associated with churn and collections, offering IPPs a stable, predictable revenue stream that financiers  demand.
  • Long-Term Viability: By handling the full lifecycle of  customer management and revenue aggregation, SCPA ensures the long-term viability of the project  itself, whether you’re able to secure ITC before the  deadline or are worried you might miss it.

The push is strong, and with the ITC clock ticking down, preparing your projects for the next market cycle is a crucial strategic move. At Solar Simplified, we're excited to continue these conversations and help the industry accelerate your projects to ensure long-term, profitable success.

Email us today to see how our model can work for your projects or visit our developers information page to explore the model.