Evergrow

Case study

Multi Family

Evergrow and Black Bear Complete Solar Tax Credit Transfers for REIT Client

In 2024, Black Bear partnered with Evergrow, a clean energy finance company, to achieve a groundbreaking milestone: the successful transfer of solar tax credits from a Real Estate Investment Trust (REIT). This innovative collaboration highlights the potential for REITs to leverage clean energy incentives, paving the way for greater adoption of renewable energy in commercial real estate.

Strategic Approach

Facilitated through Evergrow's platform, this groundbreaking transaction includes multiple solar installations on multifamily properties in California and Washington, DC, totaling 556 kW, with system sizes ranging from 66 kW to 195 kW. This deal paves the way for broader REIT participation in renewable energy initiatives, enabling the monetization of investment tax credits and accelerating the adoption of onsite renewables in commercial real estate.

While the Inflation Reduction Act of 2022 (IRA) introduced ITC transfers for the first time, questions remained about the viability of a market for REIT tax credit sales due to the smaller scale of these projects compared to traditional utility-scale transactions. Additionally, REITs face unique tax, accounting, and operational complexities, requiring collaboration with experienced and trusted partners to navigate these challenges successfully.

Challenges & Opportunities

Results

“Prior to this transaction, clients would evaluate project returns with and without the upside from the sale of the tax credit,” said Drew Torbin, Founder and President of Black Bear Energy. “With this transfer, we have proof of concept that demand exists for credits of this size and risk profile. This is significant as the ITC sale proceeds typically increase the returns by 300 basis points and upwards of 600 basis points for certain projects which qualify for the 10% bonus adder.”

Locations

CA, DC

Total MW Energized

556 kW

Avoid CO2 Emissions

Technology

Program Type

Market Segment

Multi Family

Project Benefits

Last Updated

March 2025

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Quote

“We are thrilled to collaborate on this pioneering approach to tax credit financing, tailored to commercial real estate’s unique needs when making sustainable investment decisions. By unlocking tax credit financing for REITs, Black Bear and Evergrow are forging a new path for improved returns that simultaneously support the commercial real estate sector's sustainability objectives."

James Richards

CEO of Evergrow

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