Financing Storage in the FEOC Era: Tax Equity and Beyond

Synopsis

• How are FEOC restrictions influencing eligibility for investment tax credits (ITCs) and production tax credits (PTCs), and what does this mean for structuring tax equity deals?
• Are tax equity providers refusing projects with non-compliant equipment, or are carve-outs and certifications emerging to keep deals viable?
• How are diligence processes changing to prove supply chain traceability and compliance?
• What contractual protections (indemnities, warranties, recapture insurance) are being written into tax equity agreements post-January 2026?
• If tax equity volume contracts due to FEOC, what alternative structures (synthetic PPAs, merchant hedges etc.) are investors turning to?