Abstract
The Inflation Reduction Act of 2022 extended the investment tax credit (ITC) for solar photovoltaic projects and added solar PV projects to the list of qualified facilities for which production tax credits (PTCs) are available. The IRA also introduced bonus incentives for projects meeting certain criteria, allowing for incremental credit amounts beyond those available under prior law. Many solar PV facilities in the U.S. are aging and beginning to require key component replacements, such as inverters.
The IRA tax credit provisions and the need for major component replacements present owners with an opportunity to evaluate and extend their projects’ operating life while maximizing the potential for additional or renewed tax credit eligibility. This white paper highlights some of Sargent & Lundy’s key considerations during solar PV repowering projects to aid owners, investors, lenders, and engineers in planning capital deployments for aging solar PV infrastructure. It also offers insights from Sheppard Mullin’s energy tax attorneys on tax credit implications and strategies to maximize available incentives when replacing solar PV major components.
Authors: Jake Silhavy, Eric DeCristofaro, and Eric Soderlund – Sargent & Lundy
Megan La Tronica, Darian Hackney, and Julie Marion – Sheppard Mullin