Crux Predicts $7-9 Billion Growth in Transferable Tax Credit Market by 2024
Schneider Electric, a leader in energy management and automation, has announced a partnership with Crux, a sustainable finance tech company, to secure Section 45X Advanced Manufacturing Production Tax Credits from Silfab Solar. Silfab Solar is known for its premium solar PV modules and is a key player in North America's solar industry.
This collaboration allows Schneider Electric to purchase these tax credits, injecting additional investment into Silfab Solar. The aim is to expedite Silfab's plans for expanding American manufacturing of solar energy solutions for both commercial and residential use.
Aamir Paul, President of North America Operations for Schneider Electric, expressed enthusiasm about this agreement, highlighting its role in bolstering domestic solar energy manufacturing. Leveraging the tax credit transfer provisions under the Inflation Reduction Act (IRA), Schneider Electric aims to support renewable energy infrastructure development, contributing to a more sustainable future.
The IRA's transferable tax credit market enables clean energy developers and manufacturers to monetize their tax credits, attracting private sector investments into energy infrastructure and advanced manufacturing.
This transaction represents one of many facilitated by Schneider Sustainability Business on behalf of its parent company and other corporations. The Sustainability Business advises clients on purchasing tax credits, collaborating with partners like Silfab and Crux to optimize opportunities while mitigating risks for buyers.
Hans Royal, Senior Director of Renewable Energy & Cleantech at Schneider Electric's Sustainability Business, emphasized the importance of Crux's role in streamlining the transaction process. Crux's platform enhances transparency in market opportunities, aiding Schneider and its clients in sourcing the best tax credits available.
Crux, launched in January 2023, is revolutionizing clean energy project financing in the U.S. by facilitating transactions of transferable clean energy tax credits introduced by the IRA. They played a pivotal role in connecting Silfab Solar and Schneider Electric, thereby facilitating this successful tax credit transaction.
“Domestic manufacturing of key energy components is booming and Silfab Solar is a leader in the space,” said Alfred Johnson, CEO and co-founder of Crux.
“We were thrilled to help Silfab successfully navigate their first 45X tax credits sale to Schneider Electric, a global leader in the energy transition. This deal exemplifies how the transferability of tax credits is win-win: providing simple, efficient access to capital to support Silfab’s expansion while allowing Schneider to make additional investments in the growth of the clean energy industry.”
“Silfab was pleased to partner with Schneider to unlock the value of our advanced manufacturing tax credits,” said Paolo Maccario, CEO and President of Silfab Solar, Inc.
“As a result, we were able to monetize our 45X tax credits, providing us access to additional capital that is beneficial in expanding our US solar manufacturing capacity. Silfab is deeply committed to US energy independence and buyers like Schneider Electric allow us to further accelerate our growth. Crux was also an important partner to this transaction, helping connect us to Schneider via their intuitive and accessible platform.”
In its debut Transferable Tax Credit Market Intelligence Report unveiled in January 2024, Crux projected that the nascent transferable tax equity market would grow to a scale of $7-9 billion in its inaugural year. Crux has swiftly established itself as a crucial technological force facilitating successful market transactions.
This collaboration allows Schneider Electric to purchase these tax credits, injecting additional investment into Silfab Solar. The aim is to expedite Silfab's plans for expanding American manufacturing of solar energy solutions for both commercial and residential use.
Aamir Paul, President of North America Operations for Schneider Electric, expressed enthusiasm about this agreement, highlighting its role in bolstering domestic solar energy manufacturing. Leveraging the tax credit transfer provisions under the Inflation Reduction Act (IRA), Schneider Electric aims to support renewable energy infrastructure development, contributing to a more sustainable future.
The IRA's transferable tax credit market enables clean energy developers and manufacturers to monetize their tax credits, attracting private sector investments into energy infrastructure and advanced manufacturing.
This transaction represents one of many facilitated by Schneider Sustainability Business on behalf of its parent company and other corporations. The Sustainability Business advises clients on purchasing tax credits, collaborating with partners like Silfab and Crux to optimize opportunities while mitigating risks for buyers.
Hans Royal, Senior Director of Renewable Energy & Cleantech at Schneider Electric's Sustainability Business, emphasized the importance of Crux's role in streamlining the transaction process. Crux's platform enhances transparency in market opportunities, aiding Schneider and its clients in sourcing the best tax credits available.
Crux, launched in January 2023, is revolutionizing clean energy project financing in the U.S. by facilitating transactions of transferable clean energy tax credits introduced by the IRA. They played a pivotal role in connecting Silfab Solar and Schneider Electric, thereby facilitating this successful tax credit transaction.
“Domestic manufacturing of key energy components is booming and Silfab Solar is a leader in the space,” said Alfred Johnson, CEO and co-founder of Crux.
“We were thrilled to help Silfab successfully navigate their first 45X tax credits sale to Schneider Electric, a global leader in the energy transition. This deal exemplifies how the transferability of tax credits is win-win: providing simple, efficient access to capital to support Silfab’s expansion while allowing Schneider to make additional investments in the growth of the clean energy industry.”
“Silfab was pleased to partner with Schneider to unlock the value of our advanced manufacturing tax credits,” said Paolo Maccario, CEO and President of Silfab Solar, Inc.
“As a result, we were able to monetize our 45X tax credits, providing us access to additional capital that is beneficial in expanding our US solar manufacturing capacity. Silfab is deeply committed to US energy independence and buyers like Schneider Electric allow us to further accelerate our growth. Crux was also an important partner to this transaction, helping connect us to Schneider via their intuitive and accessible platform.”
In its debut Transferable Tax Credit Market Intelligence Report unveiled in January 2024, Crux projected that the nascent transferable tax equity market would grow to a scale of $7-9 billion in its inaugural year. Crux has swiftly established itself as a crucial technological force facilitating successful market transactions.
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