Finding and securing tax credits has long been a challenge for both buyers and developers. Clean energy developers need billions in financing each year to build new solar, wind, and battery storage projects, yet traditional tax equity deals are slow and complex. Meanwhile, buyers seek tax credits for ESG goals, financial benefits, or both, but navigating a fragmented marketplace remains a challenge.
Last year, LevelTen Energy launched its Tax Credit Marketplace to streamline how buyers and sellers connect. Now, we’re expanding its capabilities with Listings, making it even easier to browse live offers, request proposals, and secure tax credits from the world’s largest renewable energy developer network. Sellers can now respond to requests from pre-screened buyers or list their tax credits for sale, increasing liquidity and accelerating transactions. This expansion builds on our popular end-to-end tax credit RFP capabilities, giving buyers and sellers greater flexibility than ever before.
Part of the LevelTen Platform, which also includes a power purchase agreement (PPA) marketplace, Tax Credit Marketplace Listings allows buyers to procure tax credits independently or alongside PPAs and unbundled renewable energy certificates (RECs). New buyers can also access LevelTen’s network of tax and sustainability advisors for expert guidance.
Meeting Growing Demand for Tax Credit Financing
For decades, tax equity investment has been a cornerstone of clean energy financing. Clean energy developers rely on tax equity financing to fund up to 60% of project costs, yet securing this financing has traditionally been complex and slow. Partnerships with tax equity investors, like large banks, involve lengthy negotiations and stringent requirements. As a result, there simply is not enough traditional tax equity financing to support the rapid buildout of clean energy projects, putting the energy transition at risk. In recent years, 36 GW of wind and solar projects have been delayed due to the lack of tax investment.
The Inflation Reduction Act (IRA) has reshaped the landscape by introducing transferable tax credits, giving developers an additional way to access capital. Transferable tax credits greatly expand the pool of available capital by providing developers with the flexibility to sell unused federal tax credits directly to corporations. This expands funding opportunities and enables more clean energy projects to move forward. This shift benefits both sides—developers gain immediate financing, while corporations reduce tax liabilities and contribute to the clean energy transition.
Unlocking Capital to Accelerate Clean Energy Growth
The transferable tax credit market has experienced rapid expansion, growing to more than $20 billion in 2024. In less than two years, transferable tax credits have almost doubled the size of the tax credit market to north of $40 billion. Experts predict that tax credit financing will soon outpace traditional tax equity investment.
However, with projections showing the need for more than $100B in annual tax credit financing by 2030 to keep up with clean energy deployment, developers require more efficient ways to connect with corporate buyers. LevelTen’s Tax Credit Marketplace addresses this need by increasing liquidity and streamlining transactions.
A Tax Credit Marketplace Designed for Sustainability and ESG
For corporations focused on sustainability, transferable tax credits provide a powerful tool for advancing ESG strategies. These credits contribute to clean energy expansion and ESG initiatives in several key ways:
- Enabling New Clean Energy Projects: Transferable tax credits enable new clean generation to be built and added to the grid. Many solar, wind, and battery storage projects depend on tax credits to be developed. Tax credit sales provide developers with essential capital. By purchasing tax credits, corporations help developers unlock capital that directly supports clean energy deployment.
- Supporting Scope 2 Reduction Targets: Many corporations with Scope 2 reduction targets pair tax credits with PPAs or unbundled RECs to help meet emissions reduction commitments while securing financial and sustainability benefits. However, navigating separate procurement processes can be complex and time-intensive. LevelTen’s Platform simplifies this by centralizing multiple clean energy marketplaces, making it easier for buyers to integrate tax credits into their broader decarbonization strategy.
- Creating Well-Paying Jobs: Developers who meet prevailing wage and apprenticeship (PWA) requirements qualify for 5x the base amount of tax credits for their project. By purchasing tax credits from these projects, buyers help fund clean energy jobs that pay fair wages and provide workforce training opportunities.
- Strengthening Local American Economies: Incentives for sourcing solar modules, inverters, and other components from U.S. manufacturers help build a more resilient clean energy supply chain. By prioritizing American-made materials, developers unlock additional tax credits while supporting domestic jobs, reducing reliance on foreign imports, and accelerating the growth of U.S.-based clean energy production. Corporate buyers with ESG commitments to domestic economic development can further align their investments by purchasing tax credits from these projects.
Helping Sellers Access Qualified Buyers, Fund Clean Energy Projects Faster
For clean energy developers and other tax credit sellers, efficiently monetizing (selling) tax credits is essential for securing project financing. However, identifying transaction-ready buyers can be a challenge. Tax Credit Marketplace Listings provides direct access to LevelTen’s network of pre-screened corporate buyers and leading tax and sustainability advisors.
By listing tax credit offers on the platform, developers and manufacturers ensure maximum visibility among serious buyers. Additionally, sellers can browse buyer requests for custom tax credit proposals, submit offers, and move directly into negotiations. This streamlined approach accelerates project funding, ensuring that available tax credits are effectively deployed to support clean energy growth.
A Flexible, Streamlined Solution backed by Proven Expertise
LevelTen’s Tax Credit Marketplace Listings gives buyers flexibility with multiple options, including pure tax credit transfers, tax credits paired with PPAs, and tax credits with unbundled RECs. Sellers benefit from access to a broad network of qualified buyers who understand the value of tax credits and are ready to act.
With over $14.8 billion in clean energy transactions facilitated, LevelTen is uniquely positioned to deliver the transparency, scale, and efficiency that stakeholders need to succeed in today’s tax credit market.
Start Connecting and Closing Deals Today
Efficient access to tax credit financing is crucial to the clean energy transition. LevelTen’s Tax Credit Marketplace Listings removes the complexity, making it easier than ever for buyers and sellers to find the right opportunities, accelerate transactions, and maximize impact.
Whether you’re a corporation seeking tax credits to meet ESG targets, a developer looking to monetize credits, or an advisor guiding clients through the process, LevelTen provides the scale, expertise, and connections to help you succeed.
LevelTen subscribers and users now have access to Listings. To get login credentials or to receive a demo and learn more, contact taxcredits@leveltenenergy.com.
