Last year, the Boston Community Solar Cooperative announced plans for its first community solar project: 81 kilowatts of panels atop an affordable housing complex in a low-income, historically Black Boston neighborhood. The success of the project depends, in large part, on tax credits the Inflation Reduction Act established in 2022. Because the solar panels will sit on a subsidized apartment building in a low-income community, up to 50 percent of the project’s cost could ultimately be recouped through tax credits. But, in all likelihood, once the project’s completed, the Boston Community Solar Cooperative won’t actually receive those credits — and that’s by design.
Instead, the cooperative intends to sell its tax credits as soon as it can, said Gregory King, the organization’s president. This will bring in more cash early on, reduce the amount of debt required, and improve the financial outlook of the project.
In the past, a scheme like this would have required whoever purchased the credits to retain an ownership stake in the project for at least five years ... Read more
