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The now “fully” passed bill heads to the President’s desk for signature (anticipated July 4, 2025).  While not an ideal outcome, we are pleased that Monarch’s persistent direct advocacy resulted in several improvements over House Resolution 1 as well as both the initial Senate Finance Committee text and the proposed legislation originally brought to the floor.  In fact, the final law retained credit eligibility for solar and wind projects under a begun construction exception consistent with what Monarch suggested via multiple senate/staff/committee channels within hours of the final legislative text being released on Saturday, June 28.

Notably, the new law ensures viable energy credit investment and purchase opportunities for the long term, and in our view, continues “business as usual.” While the tenor for solar and wind has been abbreviated, credits for some technologies (sustainable fuels) have been extended and others (fuel cells) have been added.  Monarch will continue to be a market leader and innovator in all energy credit areas, and we are proud of the work we’ve done with existing and new developer partners throughout this legislative process.  Those now stronger partnerships afford a broad spectrum of opportunities and structures from credits involving solar, storage, wind, geothermal, fuel cells, and other electricity generating or equipment manufacturing facilities, as well as credits from sustainable fuels and carbon sequestration, among others.Snapshot of the passed bill and certain energy credits:

  1. Solar and Wind – credits available for projects that commence operating as late as 2030
    1. Projects need to either
      1. Begin construction by July [4], 2026 (anniversary of actual presidential signature) (project would then have until the end of 2030 to commence operations) OR
      2. Commence operating before the end of 2027
    2. Projects that “begin construction” in 2026 or later will have restrictions on component sourcing (Monarch will underwrite and monitor compliance)
  2. Storage (battery), geothermal, and fuel cells – credits available for projects that commence operating as late as 2036
    1. Projects that “begin construction” in 2026 or later will have restrictions on component sourcing (Monarch will underwrite and monitor compliance)
    2. In addition to potential component restrictions, projects need to begin construction by the end of 2032
    3. Fuel cell projects eligible if begin construction after December 31, 2025
  3. Clean Fuel Production – credits available for production through the end of 2029 (extended two years)
    1. Added foreign ownership/assistance prohibitions
  4. Advanced Manufacturing Production Credit (manufacture of energy production components) – continues at current level through 2029, with 25%/annum phase down thereafter
    1. Adds restrictions on foreign ownership and component sourcing
    2. No credits for wind components manufactured/sold after 2027
  5. Transfer Credits – eligible for the credit types identified above.

Interview by Adam Mendler

Monarch Private Capital is proud to share that our Co-Founder and Co-CEO, George Strobel, was recently featured in an in-depth interview conducted by Adam Mendler, a nationally recognized authority on business and leadership.

Adam Mendler is the creator and host of Thirty Minute Mentors, a top-rated leadership podcast where he regularly interviews America’s most successful CEOs, founders, athletes, and public figures. With over 500 interviews and more than 70 published articles in major media outlets including Forbes, Inc., and HuffPost, Adam is widely regarded for his ability to draw out meaningful insights on leadership, strategy, and personal development.

In the interview, George reflects on the early experiences that shaped his career, the founding and growth of Monarch Private Capital, and the guiding principles that continue to drive our mission—creating long-term value through tax equity investments that deliver both financial returns and measurable community impact. He also offers thoughtful perspectives on entrepreneurship, team-building, and the importance of resilience and integrity in leadership.

Read the full article here.

By George L. Strobel II

In an age defined by technological competition, particularly in artificial intelligence (AI), the United States cannot afford to neglect the foundational pillars of national power: energy security and military dominance. Yet House Resolution 1 (HR 1), as currently under consideration in Congress, threatens to do just that. By significantly undercutting the nation’s ability to meet surging energy demands, HR 1 not only jeopardizes America’s global leadership in AI but also runs counter to decades of core Republican values rooted in national defense and energy independence.

Core Republican Principles: Defense First, but Necessarily Supported by Energy Independence

For generations, the primacy of national defense has been a bedrock Republican principle. America’s emergence and continuation as the world’s superpower have been based on military and industrial might . . . made possible by the energy necessary to drive this superiority.  Without abundant energy supply, America would not have been able to rally the manufacturing required to put ships, planes, tanks, and armament forward in the World Wars.  The Great White Fleet, U.S. troop action in Europe and the Pacific, the nuclear Navy, forward presence, victory in the Cold War, international stability and keeping regional conflicts in check . . . all made possible by our energy dominance.  As America finds itself locked in a high-stakes competition with China—and increasingly with other actors—for AI supremacy, the need for secure and scalable energy has never been more urgent.

According to Elon Musk in a recent interview with David Faber of CNBC (May 21, 2025), three pillars are essential for AI dominance:

  1. Chips – led by U.S. firms like Nvidia.
  2. Transformers – essential for converting raw electricity into usable power (for all energy sources).
  3. Energy – the lifeblood of data centers and machine learning infrastructure.

While the U.S. currently leads in chips, energy generation is emerging as the critical bottleneck.

A Legacy of Republican Support for All-of-the-Above Energy

The Republican Party has historically advocated for an “all-of-the-above” energy strategy—promoting oil, gas, nuclear, and renewables alike to ensure U.S. energy dominance.

These policies were never about partisanship; they were about practical national strength, economic resilience, and energy independence.  In fact, the Energy Policy Act’s key objectives included: Increasing Energy Production, Promoting Energy Efficiency, Modernizing the Grid, and Supporting Renewable Energy.  Removing key support for renewable energy as HR 1 does in its current form structurally impacts each of these four tenants. 

Surging Demand, Shrinking Supply

The challenge ahead is stark. According to ICF International, a major U.S. consultancy, electricity demand is expected to rise by 25% by 2030 and by 78% by 2050—driven by AI, cloud computing, EVs, advanced manufacturing, and crypto-mining.

As Elon Musk warned in the previously mentioned CNBC interview, the next chokepoint is not chips, but electricity generation. Musk’s company, xAI, is building a gigawatt-scale data center—equivalent to a nuclear power plant’s output—just to meet internal AI compute needs.

Musk predicts that “power generation challenges will arise by mid-to-late next year [2026],” and he’s far from alone in that concern.

HR 1 Would Devastate Planned Energy Projects

Despite this, HR 1 would cut deeply into the heart of America’s future energy supply and its ability to meet the forecasted increase in energy demand..

Analysis by David Riester and Paul Hildebrand of Segue Sustainable Infrastructure estimates that if HR 1 was enacted:

This is not a marginal reduction—it’s a catastrophic contraction at a time when energy needs are exploding.  Even more, it is elimination of ongoing technological advancement, manufacturing renaissance, and energy export opportunities. 

Natural Gas and Nuclear Cannot Fill the Gap

While some might hope natural gas could offset these losses, Riester and Hildebrand’s analysis (which is consistent with other reviews) is sobering:

Nuclear energy, while essential and rightly supported by President Trump’s latest executive orders, requires at least 8 years or more to bring new plants online. Moreover, the political stability of that support across administrations remains uncertain, as does public acceptance of safety and siting.

A Threat to National Security and AI Leadership

This is more than an energy debate—it’s a matter of national security.

If HR 1 passes, the U.S. would be capping not only its own energy growth, but its leadership, just as the world enters an era where energy is THE deciding factor in technological and military supremacy.

Conclusion: HR 1 is a Strategic Energy Policy Mistake

HR 1 undermines the Republican Party’s Energy Policy principles, and particularly its longstanding commitment to:

Reducing our energy capacity when demand is poised to skyrocket—especially from transformative technologies like AI—puts the U.S. economy, security, and global standing at risk.

The path forward must be clear, and boldly supported: America needs a recommitment to: “all-of-the-above” energy policy, an aggressive expansion of our power infrastructure, and rejection of legislation like HR 1 that weakens America’s future. In this new era of energy-driven competition, to falter is to fall behind, and to fall behind is to surrender.

By George L. Strobel II

In the wake of last month’s massive blackout that disrupted power across Spain, Portugal, and parts of southern France for more than twelve hours, speculation ran wild over the cause of the blackout. Was it a cosmic event? A technical breakdown? Or a sign that Europe’s increasingly renewable-heavy energy infrastructure was reaching a breaking point? Now, with the dust settled and new reports emerging, the truth behind the blackout is finally coming to light—and it’s far more surprising than expected.

Speculation and Theories Abounded

In the immediate aftermath of the April 28th blackout, theories flourished. Online forums, energy blogs, and news outlets were ablaze with conjecture. One of the earliest and most widely circulated theories was that a solar flare—a powerful burst of radiation from the sun—had disrupted satellite communications and sensitive electrical equipment on the ground.

Others believed it might have been a technical glitch, the kind of random error that occasionally plagues even the most advanced infrastructure. Some energy analysts and critics of renewable energy pointed to the “lack of grid inertia”—the stabilizing effect typically provided by large spinning turbines in fossil fuel or nuclear power plants—as a key vulnerability in Spain’s increasingly green power mix. They argued that without this buffer, the grid might have been too fragile to handle even minor fluctuations.

A Grid Rich in Renewables

At the time of the blackout, Spain’s electric grid was indeed operating on an unusually high proportion of renewable energy. According to data from Red Eléctrica de España (REE), the national electric operator, the composition of Spain’s grid on April 28 was heavily tilted toward renewables:

  1. Solar: 59%
  2. Wind: 12%
  3. Nuclear: 11%
  4. Natural Gas: 5%
  5. Other sources: 13%

REE’s publicly available dashboard showed that at 12:30 p.m., the grid had more than enough power—32 gigawatts (GW) were being supplied for a national demand of just 25 GW. Not only was the grid meeting local needs, but it was also exporting power: 2.6 GW to Portugal, 0.87 GW to France, and 0.78 GW to Morocco. In light of these statistics, suggestions that the blackout resulted from a shortfall of supply or the quality of its sources were cast into doubt.

Still, Spain’s plan to phase out nuclear energy by 2035 added fuel to critics’ concerns about the long-term viability of such a renewable-heavy strategy.

The Truth Emerges: A Hidden Stress Test

Now, new reporting from The Telegraph has shed light on the true cause—and it was not a cosmic event, a grid malfunction, or a failure of Spain’s clean energy ambitions. Instead, it was a deliberate experiment (The Telegraph, May 23, 2025).

According to sources cited by The Telegraph, the blackout originated at a substation in Granada at exactly 12:30 p.m. Within five seconds, cascading failures occurred at two other substations—Badajoz and Seville. In that blink of an eye, over half the grid’s supply vanished, plunging large portions of Iberia into darkness.

But it wasn’t a glitch. It was a stress test—an unscheduled and secret simulation designed to evaluate the resilience of Spain’s grid under high renewable penetration. Details remain murky, including who authorized the test and why it was carried out without public notification or coordination with neighboring countries.

Implications and Fallout

The revelation has sparked a mix of relief and outrage. On one hand, the blackout was not caused by any inherent weakness in renewable energy or the grid’s ability to handle it. On the other, the idea that an experimental procedure—one capable of knocking out power for millions—was conducted in secret is deeply troubling to many.

But Spain’s reliance on renewable energy was not the source of the problem. In fact, as more solar facilities are constructed in junction with battery storage, grid resiliency will only strengthen. This doesn’t mean that more doesn’t need to be done to bolster power infrastructure and grid cybersecurity – that clearly is required. But expansion of renewable energy should not pause because of this event.

In the coming weeks, scrutiny of Spain’s energy governance is expected to intensify. What’s clear now, however, is that misinformation about the blackout was just as widespread as the blackout itself—and the truth is even more electrifying than fiction.

Sources:

The Telegraph. “Spain’s Blackout Story Is Disintegrating.” Published May 23, 2025. https://www.telegraph.co.uk/business/2025/05/23/spains-blackout-story-is-disintegrating/

by Justin Worland

As Republicans look to broker a sweeping budget deal, top GOP leadership in the House of Representatives unveiled a series of cuts this week to the provisions of the Inflation Reduction Act (IRA) aimed at tackling climate change. This includes proposing to curtail tax credits for clean electricity generation and domestic clean technology manufacturing. To enact the proposed language would deal a swift blow to U.S. efforts to cut emissions and transition to cleaner energy sources. It would also stifle a surge in manufacturing investment that has swept much of the country.

“It will come to a screeching halt without the credits,” says George Strobel, co-CEO at Monarch Private Capital, which finances solar projects. “That’s just the way it is.”

Since the language was announced on May 12, many Senate Republicans, who would need to approve the measure before it becomes law, have balked, fearing that such a pullback would kill jobs in their home states and harm American businesses. For that reason, they say, the language should represent a starting point, certain to be revised in the lengthy negotiations necessary to approve the changes. “Anything that comes over from the House, almost by law, we’ve got to redo,” Alaska GOP Senator Lisa Murkowski told reporters.

Read the entire article

By George L. Strobel II

As the U.S. prepares for the energy challenges of the coming decade, federal leadership has a unique opportunity—and responsibility—to ensure national security through strategic investment in renewable energy. Chief among these is the solar energy sector, which stands not only as the cheapest and most immediate source of incremental energy but also as a pillar of economic resilience and geopolitical independence. For policy makers, supporting this sector is no longer optional—it is a national security imperative.

A. Projected Energy Demands Require Proactive Legislative Planning

The U.S. is expected to experience significant growth in energy demand of at least 25% through 2030, driven by the electrification of transportation, expanding industrial activity, and increasing reliance on data centers and AI infrastructure. Federal and state governments must anticipate this surge by enabling clean, scalable energy sources. Without legislative foresight, the U.S. risks rolling brownouts (such as those already being experienced in California) and continuing  dependence on unreliable Chinese supply chains.

B. Solar Energy’s Central Role in U.S. Energy Strategy

Solar energy is uniquely positioned to support growing US energy demand. It is abundant, rapidly deployable, and the most  cost-effective source of US energy. Texas has already replaced California as the largest installer of utility scale solar energy.  Policy makers have already seen the benefits of solar deployment at the municipal and state levels in terms of Grid resiliency; now it’s time to scale those successes strategically in the US. With proper incentives and regulatory frameworks, solar can become a backbone of U.S. energy independence and international energy leadership.  The Section 48 tax credit for solar energy is critical to maintaining growth in the solar industry sector and meeting the nations burgeoning energy needs.

C. Strategic Vulnerability: China’s Control Over the Solar Supply Chain

Currently, China controls more than 80% of the global solar panel supply chain—from rare earth mineral extraction to module assembly. This includes domination in polysilicon production, cell manufacturing, inverters, racking systems, and other critical inputs. The U.S.’s heavy reliance on this single nation represents a strategic vulnerability. In times of diplomatic tension or trade restrictions, the consequences could be severe—jeopardizing grid stability, economic growth, and other strategic objectives.

D. The Domestic Industry Is Nascent and Needs Federal Backing

American solar manufacturing is in its early stages, and without consistent federal support and robust domestic demand, it cannot scale fast enough to meet national energy and security needs. The absence of tax incentives for solar developers would cause demand for domestically produced panels to decline, imploding the fragile domestic sourced supply chain. This would forfeit years of progress and cede further ground to foreign competitors.

E. The 45X Advanced Manufacturing Tax Credit: A Cornerstone of Industrial Strategy

The Section 45X tax credit is critical to the viability of U.S.-based solar manufacturing. It provides direct, per-unit incentives for the production of solar cells, modules, wafers, and other components within American borders. These credits are not handouts—they are strategic investments that level the playing field against foreign subsidies and unfair labor practices and catalyze private-sector growth. Making the 45X credit permanent will send a clear signal to investors, manufacturers and the world that the U.S. is committed to building and sustaining its energy infrastructure at home and preserving high paying jobs.

Conclusion: The 2025 Tax Bill Must Codify a Long-Term Commitment to Solar Independence

As Congress debates the contents of the 2025 tax package, lawmakers must prioritize the continuation and permanence of solar industry and solar manufacturing tax incentives—most importantly, the Section 48 and 45X credits. This is not just about jobs or meeting energy demand. It is about securing America’s energy independence, reducing vulnerability to geopolitical adversaries, and ensuring a resilient infrastructure for the decades to come.

Permanent legislative support for the solar industry is a strategic move that will pay dividends in terms of national security, economic growth, and technological leadership. Policy makers have the opportunity to make history by building the energy foundation for  a stronger, safer America.

By Kristin Toussaint

Solar industry experts say it has too much Republican support, and makes so much sense economically, that the solar industry will keep growing.

President Donald Trump has been clear that his vision for America’s energy landscape prioritizes fossil fuels. He has curtailed federal funds for renewable energy—and has voiced his personal distaste for those projects, particularly wind farms. He’s talked about ramping up coal and increasing oil drilling, and he’s threatened to completely undo the Inflation Reduction Act (IRA).

But even amid all that, the solar industry is still somewhat optimistic about its future. Solar just makes sense, industry players say—especially if we need to increase our energy production, and do so fast.

“I keep on reminding people that solar energy is as competitive as natural gas now, it’s as cheap as any form of energy, and it can be built quicker than any form of energy.”

says George Strobel, cofounder and co-CEO of Monarch Private Capital, which invests in renewable energy and affordable-housing projects.

“There is some surprising support—at least as far as the [Trump] administration is concerned—for the solar industry, coming from the utility sector.”

Read the entire article

New podcast series offers insight for investors and developers interested in tax credits and tax equity investing

Monarch Private Capital, a nationally recognized impact investment firm that develops, finances, and manages a diversified portfolio of projects generating both federal and state tax credits, announces the launch of its podcast, Monarch Perspectives. This new podcast aims to better inform investors and developers interested in impactful investing.

The podcast, hosted by Monarch Private Capital partners Steve LeClere and Rick Chukas, features interviews with industry experts to discuss timely topics and the latest updates that are pertinent to investors, developers and owners. The first three episodes of Monarch Perspectives are available today on all major podcast platforms.

“The world of investing can ebb and flow based on economic conditions and other factors, and it’s important that investors, developers and owners are abreast of these changes and evolving trends,” says George Strobel, co-founder and co-CEO of Monarch Private Capital. “We are excited to launch Monarch Perspectives to offer them unique assessments and insights on impact investing and how these investments drive real change.”

Episode one features Strobel and Monarch co-founder and co-CEO Robin Delmer discussing the company’s rich history in impact investing, the intricacies of federal and state tax credit programs, and how these credits are used to revitalize communities and create a more sustainable future.

In episode two, LeClere and Chukas interview Bryan Didier, Monarch partner and leader of the company’s Renewable Energy Division, to discuss the Inflation Reduction Act and the opportunities it presents for impact investors.

Philip Welker, Managing Director of BNA Associates, joins in episode three to shed light on historic tax credits and the challenges and benefits of historic tax credit transactions. Welker and his team have undertaken several historic projects, including the renovation of Atlanta’s Hotel Clermont. Additional episodes will be released in the coming months. For more information, visit www.monarchprivate.com.

About Monarch Private Capital

Monarch Private Capital manages impact investment funds that positively impact communities by creating clean power, jobs, and homes. The funds provide predictable returns through the generation of federal and state tax credits. The Company offers innovative tax credit equity investments for affordable housing, historic rehabilitations, renewable energy, film, and other qualified projects. Monarch Private Capital has long-term relationships with institutional and individual investors, developers, and lenders participating in these federal and state programs. Headquartered in Atlanta, Monarch has offices and professionals located throughout the United States.

by Ray Starling, President, NC Chamber Legal Institute

On April 3, 2023, the North Carolina Business Court issued a decisive victory for taxpayers in a long-running dispute with the North Carolina Department of Revenue over the state’s now-expired renewable energy tax credit program. The program was intended to encourage investment in North Carolina renewable energy projects. The Department originally supported the program, but after the program expired in 2017, the Department tried to claw back hundreds of millions of dollars in credits from taxpayers who had invested in renewable energy in response to the legislature’s incentives. The Chamber has watched these cases closely, and written about them here.

The taxpayer with the first dispute to reach the Business Court was the North Carolina Farm Bureau Mutual Insurance Company. The Chamber Legal Institute filed an amicus brief with the Business Court in the Farm Bureau case to protest the Department’s about-face and disregard of the legislature’s intent.

The tax credit program offered a credit equal to 35% of the cost of purchasing, leasing, or constructing renewable energy property. The tax credit statute specifically contemplated that a partnership could generate credits by constructing renewable energy property and pass the credits through to its partners. The credits were essential to attracting capital to projects that otherwise would not have made economic sense to investors. Project sponsors therefore worked with professional syndicators to find investors interested in the credits and pool them into partnerships that would then invest in the projects.

In its audits, the Department claimed the tax credit investors were not “bona fide partners” in their partnerships because they didn’t expect significant economic returns beyond the tax credits the projects would generate and because the investments were relatively low risk. In addition, the Department argued that even if the investors were true partners, they did not receive their credits through partnership allocations as the tax credit statute required but through improper “disguised sales.” The Department relied entirely on federal tax law to support its theories.

Business Court Judge Adam Conrad heard the Farm Bureau case on September 30, 2021, and released his decision in favor of the taxpayer on April 3, 2023.

Read the full article.

Contact us for more information about impact investing, federal and state tax credits.