Alternus Clean Energy Inc (NASDAQ:ALCE, OTC:ACLEW) has completed its first tax equity transaction under the Inflation Reduction Act (IRA), the company announced on Wednesday.
The deal, which was carried out by a subsidiary of Alternus, involved a tax credit transfer of approximately $1.74 million from 2023 Investment Tax Credits (ITCs).
The transaction included two key solar projects in Tennessee—the Omohundro Solar Project and White's Creek Solar Project, both owned by Alternus' subsidiary, Lightwave Renewable LLC.
The solar installations provide energy for Metro Water Services at their Omohundro and White's Creek campuses.
Proceeds from the tax credit transfer were allocated to transaction costs and to pay down senior debt on the projects, helping improve Alternus’ overall equity position, the company said.
Vincent Browne, CEO of Alternus, hailed the transaction as a major milestone.
"We're excited to have completed our first tax equity transaction, that can significantly reduce the capital required for our projects,” Browne said in a statement.
“We look forward to availing of additional transactions as we strive to advance the US renewable energy industry, support job growth, and continue to promote local economic development.''
The IRA, passed in 2022, has expanded the use of investment tax credits, providing significant incentives for clean energy projects across the US.