New Energy Needs New Finance Options – Wells Fargo

Wells Fargo’s Hopkins: As Renewable Tax Credits Phase Out, Industry Must Develop New Financing Structures

Betsy Lillian, September 5, 2019 (North American Windpower)

“…Earlier this year, Wells Fargo named Phil Hopkins to lead its renewable energy and environmental finance business…Wells Fargo made its first tax equity commitment to a wind project in 2006 and, shortly thereafter, began investing in distributed generation solar…[Its has since supported over 400 projects with] over $7.5 billion of tax equity financing…[It provided approximately $1.5 billion in tax equity financing to U.S. renewable energy projects in 2018…[That included its] first combined debt/tax equity financing…[This year, it expects to invest more and close its first fuel cell transaction and its] first utility-scale solar and storage project…[Wells Fargo has investments in 30 U.S. states and territories – from Hawaii to Maine to Puerto Rico – with heavy solar concentration in the Southwest and Northeast and wind investments concentrated in the Central states…

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…[The 2015 legislation that established a gradual phase-out of the federal tax credits and other detailed provisions, Wells Fargo found] a more consistent supply of financing opportunities. And while tariffs have put upward pressure on both modules and steel prices, these cost increases largely have been offset by falling costs in other aspects of development, construction and financing…[It now sees wind and solar technologies as proven, but sees the] need to develop new and different financing structures…[Investment is needed for] energy storage, demand response programs and the other innovative technologies to be part of the solution…[As the sole leader of the renewable energy and environmental finance business, Wells Fargo wants] to continue providing the full spectrum of financial products and services…” click here for more

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