LATEST NOTE

The clean energy tax credit cliff is now a calendar.

The clean energy tax credit cliff is no longer a policy debate. It is a calendar.Under the One Big Beautiful Bill Act, wind and solar projects had until July 4, 2026 to begin construction and keep the full four-year window to finish. That date has passed. For any wind or solar project that did not start construction in time, there is now one remaining path to the Section 48E investment tax credit or Section 45Y production tax credit: be placed in service by December 31, 2027. That is roughly 14 months away, enough for procurement, construction, interconnection and commissioning, and often not much else. Financing cannot be the thing that slows you down.Projects that missed the July deadline are in a race. Every month spent negotiating term sheets, chasing diligence items or reworking a financial model is a month taken from construction. Interconnection timing, which no sponsor fully controls, is the biggest risk to the schedule, and it is exactly where investors will focus.What capital providers will ask for:Begin-construction evidence: contracts, invoices, site work records and a clean timeline showing physical work and continuity.A believable schedule: an Independent Engineer report that holds up when checked against procurement lead times, interconnection milestones and contractor capacity.Compliance stack: prevailing wage and apprenticeship documentation and foreign-entity-of-concern sourcing analysis.Downside cases: models showing what happens to debt sizing and equity returns if commercial operation slips, or if credits are reduced or lost.Whether you are a sponsor racing the 2027 deadline or a lender underwriting one of these projects, Sagitta Financial can help. We manage financing workstreams, support tax equity and credit transfers, review Independent Engineer reports, and provide fractional underwriting and portfolio monitoring for banks, credit unions and private credit funds.

EARLIER NOTE

Why most solar and storage projects stall before construction.

Most solar and storage projects don't fail in construction. They stall before it. Between a signed site lease and a notice to proceed, there is a stretch where a project looks real to the developer but incomplete to a lender, and that gap is where months disappear.Credit teams tend to start with the same questions. Does the sponsor control the site, through a lease, option or easement that runs through financing? Where is the interconnection process, and is there a realistic path to an executed agreement? Which permits are in hand, which are pending, and on what schedule? How much cash does the sponsor have at risk, typically 10 to 30 percent of project cost, and where does it come from? And is there a credible construction budget and timeline, with a team able to deliver it?Pricing at this stage reflects that uncertainty. Development-stage facilities usually price meaningfully above a clean construction loan, and tenors of 12 to 18 months are often extended. A project that arrives with a complete, well-organized package gives a credit committee less to discount.The practical takeaway: before approaching lenders, close the gaps you can control. A project that answers these questions up front moves faster, borrows on better terms, and spends less of its development budget waiting. That is the preparation Sagitta helps sponsors do.

Have a project in development?Schedule a free, no-pressure discovery call to talk through your financing, credit, or portfolio support needs.[email protected] | (224) 357-7122

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