The transfer-the smallest facilitated by Basis to date-highlights a fast-evolving market for sub $1M transactions
NEW YORK, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Navajo Power Home (NPH), a next-generation solar service provider for off-grid homes on Navajo and Hopi lands, today announced the sale of a $355k investment tax credit supporting the development of solar photovoltaic arrays and battery storage systems to provide reliable clean energy for over 100 homes. The transfer was completed by Basis Climate, a leading facilitator of clean energy tax credit transfers, and represents a new benchmark for traditionally hard to monetize sub $1M tax credits.
The tax credit sale frees up capital for NPH to reinvest in new projects and local workforce development as it aims to power 1,000 homes by the end of 2025.
Delivering Clean Energy Benefits Where They're Needed Most
Across the U.S. Southwest, approximately 15,000 Navajo Nation homes lack access to electricity and often rely on expensive, inefficient diesel generators that produce air and noise pollution. NPH enables households to switch to dependable clean energy through power purchase agreements ranging from $80 a month for a 4kWh/day to $240 a month for 12kWh/day.
This lowers customer energy bills by 40-60% compared to diesel generators, which cost $200-$400 a month and only run five hours a day, five days a week. Increasing energy reliability and affordability is central to the NPH mission.
"For far too long, accessing electricity in this region has been hindered by bureaucratic obstacles, excessive costs, and harmful effects on health,” stated Chanse Foster of NPH. "We are implementing reliable, environmentally sustainable systems specifically designed to affordably address the diverse needs of our communities.”
NPH recently received a donation of 1,000 solar panels from U.S. solar panel manufacturer Qcells and a $5 million grant from the U.S. Department of Energy (DOE) through its Energy Improvements in Rural or Remote Areas (ERA) Program.
The ERA Program funds community-driven clean energy projects that "deliver measurable and sustained benefits to people who live in rural or remote areas,” while building "clean energy knowledge, capacity, and self-reliance.” At present, NPH serves over 250 homes, providing over 1,000 people with electricity access for the first time and improving livelihoods and health outcomes for tribal members.
"Getting the solar panel really helped us, so it's a lot easier now,” noted NPH customer Sarah Huckson, who recalled the great lengths her and husband Nolan went to just to keep food from spoiling. "(We) had to run back to town to grab some more blocks of ice, and that was our daily chore all summer long.”
Unlocking Small Credits with a Big Impact
The clean energy tax credit transfer market, forecast to approach $25B in 2024 deal volume, remains dominated by large players on both the buy and sell side.
Sellers of relatively small credits often contend with decreased liquidity and higher transaction costs as a percentage of the deal size-endangering a critical component of the clean energy capital stack. Developers that cannot find a buyer or make the economics work may abandon an otherwise viable project altogether.
That's why Basis views the NPH transaction as an important milestone.
"Our goal is to make it easy for buyers and sellers alike to transact on sub $1M deals,” said Basis Climate co-founder Derek Silverman. "By unlocking this high impact, underserved segment of the market, we're empowering developers like Navajo Power Home to deliver the benefits of distributed clean energy at the community level.”
Basis has now facilitated over $300M in tax credit transfers since 2023, including the recent sale of a $50M 45X advanced manufacturing production tax credit for North American solar module manufacturer Heliene Inc.
About Basis Climate
Basis Climate is a leading facilitator of clean energy tax credit transfers, providing a seamless and efficient platform for businesses and individuals to monetize their tax credits generated from renewable energy projects. The company's mission is to unlock the full potential of clean energy tax credits by connecting credit generators with motivated buyers, ultimately accelerating the transition to a clean and sustainable future. By leveraging technology and standardized diligence and transaction processes, Basis is able to support the full range of clean energy tax credits established by the Inflation Reduction Act of 2022.
Alex Apter