The solar industry will require $7 billion to $8 billion of tax capacity from external investors in 2020, according to a new Wood Mackenzie research insight. But the competition to secure that investment is tighter than ever.
Tax equity for solar projects has gotten a lot of attention this year. When the coronavirus pandemic first hit, there was widespread concern that an economic downturn would result in less tax equity being available for solar projects. The biggest investors in the space, such as JPMorgan, Bank of America and U.S. Bank, would have less tax liability to dedicate to solar investments.