Research shows that there are over $6 trillion in eligible capital gains within the US and $300 billion of it has been earmarked for Opportunity Funds to date. The potential development generated by just a fraction of those gains has renewables developers eager to use Opportunity Zones to drive new projects as Jon Bonanno, CXO at the nonprofit New Energy Nexus, explains: “Clean energy folks are beginning to jump all over this. It’s a giant money fire hose, and we want to point it at the things we want, like mobility electrification, clean electricity generation, and demand flexibility.”
A Sustainable “Opportunity”
Experts believe renewable energy and sustainable development projects could benefit from the incentive. “Many renewable energy projects are well-suited for this program because they are built in the very places most real estate developers won’t or can’t invest, such as in rural communities,” says Cody Evans, founder of Homecoming Capital. “Yet these places are often where capital – and the jobs and tax base that accompany it – is needed most, and where environmental inequity is often the greatest.”
Low-carbon projects often tick all the boxes needed to unlock the OZ funding, potentially giving developers an opportunity to create low-carbon communities and promote the use of green technology within large-scale developments.
Sixty West’s solar division, Renewable Energy Alternatives (REA), strives to deliver tax-compliant renewable energy projects through integrated investment, financing, and services.
Maximizing renewal energy is a worldwide priority. REA delivers effective results for our clients by optimally linking investment, financing, and services addressing micro-utility projects ranging from a few hundred thousand dollars up to $25 M in value. We work with both investors and developers to maximize the economics of renewable energy projects.
Through Sixty West, REA has developed and financed over 250 renewable energy properties across 91 projects in 21 states, structured and managed over three dozen tax equity funds, and served a variety of clients, from Fortune 50s to small regional banks and individuals. Now, Sixty West Funds has over $850 M under control in its opportunity zone pipeline.
Read the full FORBES article HERE.