EDGE: How does Tax Equity Advisors operate in the tax
equity market?
MR. SILVER: Tax Equity Advisors (TEA) advises
U.S. corporations with significant tax liabilities on the use of
solar tax equity. We source, diligence, and underwrite
transactions, negotiate the terms of an investment on behalf of our
clients, and monitor project performance for the duration of the
investment. We generally serve as a fiduciary for our clients.
EDGE: Are you seeing increasing interest in tax equity
investments by new and non-traditional investors?
MR. SILVER: Yes, slowly. The market for tax
equity will be about the same size this year that it was in 2015
and it will grow next year.
The traditional sources of tax equity, banks and insurance
companies, have insufficient capacity to meet the demand that
exists today. Several institutions actually rescinded offers they
had made for this year because they lacked capacity.
