Clean Energy Grant Reversal May Leave Industry Cautious

Renewable energy developers using tax credits to finance projects may now have to rethink how they fund future projects. A Jan. 7 Federal Claims Court decision sided with the Treasury Department and ordered a wind energy developer to pay back $5.63 million in grants in lieu of tax credits, an inflated amount that stemmed from the company’s advantageous tax planning. The opinion is currently sealed and will be released after proprietary information about the company is redacted. Solar and wind energy developers are watching closely for the release of the court’s opinion in the case involving California Ridge Wind Energy LLC because the court’s reasoning for reversing the cash grant could impact how future developers consider raising capital.