Pecan Credit
Transforming Access to Clean Energy Financing
Idea in Climate Tech
Introduction
We expand access to clean energy financing by connecting renewable energy projects with impact-minded companies that wish to purchase those projects’ tax credits. We de-risk the purchase and sale of tax credits by providing energy advisory services, tax expertise, and professional due diligence. The end result is a low-risk transaction that allows companies to support clean energy while also reducing their own tax liability.
Problem
Many clean energy developers rely on federal tax credits to fund their projects. Until recently, this meant developers had to enter into complicated and expensive tax-equity partnerships. Because of the high costs, such partnerships were limited to massive lending institutions that prioritized large, utility-scale projects. The Inflation Reduction Act (IRA) changed this. It allows developers to sell tax credits directly to consumers in a process called transferability. This opens the market up to companies and projects of all sizes. But there is still a problem. There is no market to exchange these credits, there is no simple way for buyers and sellers to meet, and many do not even know about this new opportunity.
Opportunity
We connect buyers (companies/lenders) and sellers (clean energy projects) in our two-sided marketplace. Our primary service for projects is finding suitable tax-credit buyers. We also perform diligence to confirm a project’s ability to produce credits. On the buyside, we match companies with their preferred project type and deliver low-risk creditsto reduce that company’s tax liability. For both buyers and sellers, we offer client education and advising on transferability, as many are unaware of new opportunities under the IRA.