The CFO of Goldman Sachs-backed US battery storage developer-operator GridStor discussed its recent investment tax credit (ITC) transfer deal for a California BESS project, highlighting some downsides as well as positives from the new mechanism.
The company sold the ITC for the 60MW/160MWh Goleta BESS project in California to JP Morgan this year after the project came online in late 2023. GridStor CFO Frank Burkhartsmeyer said the company “really liked the option” and that he was pleased with the execution, but that it did have some downsides.
Firstly, the process is still complex: “Transferability is more straightforward than traditional tax equity but it is still not a simple process by any means. There’s still a lot of documentation and considerations to go through,” he said.
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