Main non‑tax deal risks and project timing

James highlights timing, permitting, off-takers and coordination as primary threats to project closings.

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Transcript

Episode notes

Tax insurance helps clean energy projects manage the risk of the IRS challenging their tax credits - like the Investment Tax Credit (ITC), Production Tax Credit (PTC), or bonus depreciation. Instead of carrying that uncertainty, developers and investors can transfer it to insurers, adding confidence to project financing.

In this episode, Alejandro speaks with James Chenoweth Managing Director at Alliant Insurance Services, about how the market works and who’s using it. They also touch on the key areas of risk today, such as whether projects properly qualify for credits, potential recapture issues, and structuring above the project level, along with ongoing uncertainty around foreign ownership rules (FEOC), which are still awaiting clearer IRS guidance.

You can watch or listen to new episodes every Tuesday and Thursday.

Transmission is a Modo Energy production. Your host is Alejandro De Diego - US Market Analyst

Modo Energy helps the owners, operators, builders, and financiers of battery energy storage understand the market — and make the most out of their assets. Want all the latest power market news? Sign up for our free Weekly Dispatch newsletter: https://bit.ly/TheWeeklyDispatch

00:00:00 Introduction

00:03:48 What is tax insurance?

00:05:19 Who needs it and why?

00:06:18 Is a project insurable?

00:07:05 Insurable risk examples

00:07:51 Which technologies lead demand?

00:08:43 FEOC rules explained

00:09:56 How tax insurance is priced

00:10:57 Where it sits in the finance stack

00:13:49 Who benefits from risk transfer?

00:14:01 Impact on project returns

00:14:32 The next big insurable wedge