Inverted leases are a structure used to raise tax equity for renewable energy projects. The structure is used mainly in the solar rooftop market.
About 10% to 20% of tax equity transactions in that market today involve an inverted lease.
The other two tax equity structures are partnership flips and sale-leasebacks. All wind and other projects that rely on production tax credits use partnership flips. This is required by statute. Sale-leasebacks are somewhat more common in utility-scale projects