Wells Fargo Co (NYSE:WFC) Renewable Energy & Environment Finance has surpassed $10 billion in solar, wind, and fuel cell industries’ tax-equity investments. The company has invested in over 500 projects over the past ten years, helping to finance 12% of all solar and wind energy capacity in the US.
Wells Fargo leverages its tax-capacity by investing in renewable energy projects
Philip Hopkins, the Wells Fargo REEF Head, said that the company utilizes its tax capacity in investing in meaningful projects contributing to the US’s acceleration to a low-carbon economy. He said that they are delighted to play an important role in the industry’s growth and are honored to work with several leading solar and wind energy project sponsors and developers.
The federal government offers project developers incentives such as Investment Tax Credits, accelerated depreciation, and Production tax Credits to stimulate renewable energy resource growth and expedite the transition to a low carbon economy. But, since most developers don’t have adequate tax capacity, they depend on tax-equity investors such as Wells Fargo for funding.
The company made its first-tax-equity investment in 2006 and later started investing in distributed-generations solar generating power where it is utilized. Since then, Wells Fargo has grown to become a tip tax-equity investor in the renewable energy industry financing projects in almost 32 states. In 2020 REEF supported projects produced sufficient energy to power close to 3 million average-sized homes in the US.
Wells Fargo financed renewable energy projects up to $2.4 billion in 2020
Last year the bank provided $2.4 billion in financing in the renewable energy sectors, a $1 billion increase from the previous year. Wells Fargo financed projects include Ofsted’s 227-megawatt Muscle Shoals solar PV development project, which will be the largest in Alabama once completed. Currently, Muscle Shoals employs 300 people and will generate around $1 billion in sales and tax revenue. In the first two decades of its operation, the Muscle Shoal project will deliver over $15 million in incremental taxes that will go into education.