Recent government incentives have made renewable energy projects the most popular investments currently financed using tax equity structures. The largest renewable sectors are wind and solar power; other examples are storage, biomass, and geothermal. The range of structure types includes partnerships, leases, and inverted leases. Each of these types uses one or more of the principal government incentives:  investment tax credits, production tax credits, and depreciation.

Examples of renewable projects structured using ABC include:

• Large wind farms
• Utility-scale solar farms
• Commercial rooftop projects and distributed generation
• Residential rooftop installations

Large- and medium-sized renewable projects are commonly financed with special allocation partnerships and traditional lease structures. Many transactions incorporate project debt or back leverage to enhance the economics for the project participants. Portfolios of residential solar installations have been financed with inverted leases.