REITS NOT BRINGING BIG $$$ TO SOLAR

Despite Promise, Clarified REITs Fail To Yield Additional Solar Financing Benefits

Michael Puttre, 12 May 2014 (Solar Industry)

“President Barack Obama made waves throughout the solar sector last week with a speech emphasizing the importance of solar power…[and said] the U.S. Treasury Department and Internal Revenue Service (IRS) would clarify how real estate investment trusts (REITs) relate to renewable energy installations…The role of REITs as a source of funding for renewable energy development is constrained by the requirement that the bulk of its assets must be ‘real property’…[The President predicted] regulation will identify those aspects of renewable energy property that clearly fit within the existing definition of real property…the president promised more than the IRS delivered…The clarification confirms that the types of property REITs can hold are probably not going to be subjected to a radical revision…[But investors say this will] not prevent developers from getting financing at comparable rates [and are especially bullish on Yield Cos]…” click here for more

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