Foss & Company closes $150 million Section 48E tax equity deal for Illinois distributed energy portfolio

A group of investors has put about $150 million into a batch of solar projects in Illinois, run by a partnership between Summit Ridge Energy and Apollo Global Management. The money comes through a financing method called tax equity, where companies like banks and insurance firms fund clean energy projects in exchange for tax credits. This particular deal is one of the first done under a newer federal tax credit rule, called Section 48E, which replaces older solar-specific credits with a broader "technology-neutral" version and adds stricter rules about where equipment can come from, to keep out gear tied to certain foreign entities.

For homeowners, the direct effect is limited, but the details show how these projects can lower costs for participants. More than half the portfolio will take part in Illinois' Adjustable Block Program, a state program that locks in 15- to 20-year contracts for renewable energy credits, with some contracts specifically tied to low-income subscribers. The projects also qualify for extra federal credits for using U.S.-made equipment, for being built in areas with a history of energy industry jobs, and for serving lower-income households.

This is the eighth such deal between Foss & Company and Summit Ridge Energy, and the companies say it sets a model for structuring future deals under the new federal rules. If you live in Illinois and are weighing community solar subscriptions or watching for local clean energy programs, this signals continued investment in that space, backed by both state contracts and federal tax incentives.