Energy Storage Breakthrough: Lightshift Energy and Basis Climate Partner for $10 Million Tax Credit Sale
Scaling Up Energy Storage Deployment
Lightshift Energy, a leading developer, owner, and operator of energy storage projects, has successfully partnered with Basis Climate to sell nearly $10 million of investment tax credits (ITCs) tied to four utility-scale battery energy storage (BESS) projects in Massachusetts. This milestone marks a significant step forward in scaling up energy storage deployment across the United States.
Peak-Shaving Technology for Energy Savings
The four BESS projects, ranging from 9,000 kWh to 22,000 kWh, are designed to charge during periods of low energy demand and discharge during higher-cost peak demand periods. This innovative peak-shaving method enables significant energy savings for communities across Massachusetts, while also strengthening grid resiliency and helping the state meet its renewable energy goals.
Financing the Future of Energy Storage
According to Ryan Miamis, CFO of Lightshift Energy, securing necessary financing is critical to scaling up energy storage deployment. “By working with trusted partners like Basis and our skilled Lightshift team, we have been able to monetize our ITC, giving us the financial capability to deliver high-impact energy storage projects,” Miamis said.
Massachusetts Municipal Wholesale Electric Company (MMWEC) Partnership
Lightshift plans to construct up to 50 MW of storage across MMWEC member utilities, expected to provide more than $200 million in energy savings to communities. Founded in 2019, Lightshift is developing a diverse, multi-gigawatt pipeline of energy storage projects across the United States.
Ensuring Compliance with Prevailing Wage and Apprenticeship Requirements
The tax credits generated by these four projects were subject to prevailing wage and apprenticeship (PWA) requirements. To support review of these, Basis partnered with Dili, an AI-powered general diligence solution, to verify technical wage compliance under the Inflation Reduction Act.
Streamlining the Tax Credit Transfer Process
“A clear due diligence process is fundamental to a successful tax credit transfer,” said Erik Underwood, CEO of Basis Climate. “In addition to our robust diligence, we teamed up with Dili to do an in-depth PWA compliance analysis and provided our buyer with an added layer of security that gives them the confidence they need to transact.”
Basis Climate: A Leader in Tax Credit Transfers
Basis Climate, headquartered in Brooklyn, New York, has completed hundreds of millions of dollars of tax credit transfers, ranging from $355,000 to $100 million, and covering a wide range of clean energy projects. The company is dedicated to ensuring a transparent, simplified, and clear process for both buyers and sellers.
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