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
No items found.
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."
Latest News
Recent news.
_cropped.jpeg)
Learn More
Let's start the conversation.
Black Bear Energy represents YOU. We offer a tech-enabled suite of solutions designed to provide turnkey support to your team in the process of deploying solar and storage across your portfolio. Get in touch to start the conversation about empowering your porfolio.
.png){kind=logo}
