Lumen Energy partners with Crux to seamlessly sell ITC tax credits

March 28, 2024
5 min read

Today, Lumen Energy announced a new partnership with Crux, a sustainable finance technology company, to accelerate commercial real estate’s transition to clean energy by solving a critical challenge: monetizing solar investment tax credits.

On-site solar is increasingly lucrative for commercial real estate owners. Solar and storage systems can increase net operating income (NOI), boost property values, and slash carbon emissions, leading to consequential financial and environmental gains. However, one of the main economic incentives for installing on-site solar comes from clean energy investment tax credits (ITCs), which have historically been challenging for real estate investment trusts (REITs) and certain other entities to take advantage of. Now, with the passage of the Inflation Reduction Act (IRA), the federal government has not only offered new incentives to make clean energy technologies more financially attractive across the board but solved the challenge faced by REITs by making the ITCs transferable to other entities who have the tax appetite for them.

Crux's first offering is the ecosystem for buyers, sellers, and intermediaries to transact and manage these newly transferable tax credits created by the IRA. Developers and manufacturers are now able to sell their tax credits to third parties for cash — creating a powerful market mechanism to channel private sector investments into energy infrastructure, innovative technologies, and advanced manufacturing. The market for ITCs used to be fragmented and opaque, but, by using Crux, commercial real estate firms can now access greater transparency and competitive valuations on transfers.

“We’re thrilled to be partnering with Crux to make on-site solar and storage even more valuable for our customers,” said Peter Light, co-founder and CEO of Lumen Energy. “The integration of our software grants Lumen’s commercial real estate customers access to a premier marketplace of ITC buyers and streamlines the process for transfers. The days of valuing ITCs at 70 cents on the dollar are finally behind us. Real estate firms can now capture close to the full value of their ITCs, the way the IRA intends. This means that our customers will be able to deploy more solar and reap more financial and ESG rewards.”

This strategic collaboration between Lumen Energy and Crux now empowers commercial real estate owners who want to pursue cash purchases of on-site solar and storage systems to realize the full value of their clean energy systems.

“Crux is committed to changing the way clean energy and decarbonization projects are financed in the U.S. This partnership with Lumen Energy will make it simpler for commercial real estate owners to finance solar and storage systems across entire portfolios, ultimately advancing their financial and sustainability goals,” said Alfred Johnson, CEO and co-founder of Crux.

Together, Lumen and Crux are shaping the future of on-site clean energy deployment, enabling the next wave of commercial real estate owners to profit from solar and batteries with unmatched confidence and ease.

Learn more about Lumen Energy here. Request a demo here.

ABOUT CRUX: Crux is a sustainable finance technology company changing the way clean energy and decarbonization projects are financed in the U.S. The company’s first offering is the ecosystem for buyers, sellers, and intermediaries to transact and manage transferable tax credits. Crux is co-founded by Alfred Johnson and Allen Kramer, who previously founded and exited a successful marketplace software company, Mobilize. Rob Parker serves as Chief Commercial Officer and brings 20+ years of experience in the power industry, most recently serving as CFO at REV Renewables. Since its launch in 2023, Crux has raised $27 million in funding from venture capital and strategic investors and built a world-class team that merges expertise from energy, finance, government, and technology to power the clean energy transition.

ABOUT LUMEN ENERGY: Lumen Energy was founded to make it possible for millions of buildings to benefit from clean energy technologies that are both profitable and open society’s door to a sustainable future. The company empowers commercial building owners to generate new income from clean energy with confidence and ease across their entire portfolios.

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