Regarding tax credits and depreciation, solar developers can take advantage of both to reduce their overall project costs. In the U.S., for example, solar developers can benefit from the Investment Tax Credit (ITC), which allows them to claim a federal tax credit worth 30% of the cost of the solar project.

Additionally, they can also take advantage of Modified Accelerated Cost Recovery System (MACRS) depreciation, which allows them to write off the cost of the equipment over a shorter period of time than traditional depreciation methods, resulting in a faster return on investment. By using tax credits and depreciation, solar developers can reduce the overall cost of their solar project, potentially making it more attractive to potential customers via a PPA.

In the United States, the federal Investment Tax Credit (ITC) is a significant incentive that benefits solar energy projects by providing a tax credit of up to 30% of the total project cost. This credit can be used to offset up to 100% of the investor's federal tax liability, and any excess credit can be carried forward to future years. The ITC has been instrumental in driving solar energy growth and reducing the cost of solar installations.

Tax equity is particularly advantageous for solar projects because solar energy systems have high upfront costs, and tax credits can help reduce these costs. Additionally, the stable and predictable revenue streams from solar projects make them an attractive investment for tax equity investors.

Overall, tax equity can help support the growth of solar energy projects by providing much-needed capital and reducing the upfront costs of development.