REITs as a Financing Source for Renewable Energy Projects

Summary

This practice note discusses real estate investment trusts (REITs) as a financing source for renewable energy projects. In 2016, the Internal Revenue Service (IRS) issued guidelines that many renewable industry practitioners hoped would spur the use of REITs as a source of capital formation available for solar panel installation. While the guidelines did not satisfy these hopes, the Inflation Reduction Act of 2022 contains a provision that makes it easier for REITs own solar facilities.