CBRE Buys Sustainable Energy Firm ClearGen Holdings As Trump Targets The Industry

CBRE Investment Management acquired a company focused on renewable energy as the industry faces major political headwinds.

ClearGen Holdings LLC provides funding for sustainable distributed energy projects and was founded five years ago.

Since then, the North Carolina company has compiled a portfolio of 250 projects with municipalities, businesses and developers across 14 states.

“This is a watershed moment for us,” ClearGen CEO Rob Howard said in a statement. “Our mission to provide reliable capital for sustainable solutions hasn’t changed, but the opportunity to grow it has.”

Distributed energy refers to decentralized energy generation methods that buck the traditional power model. Common examples are rooftop solar panels or dispersed wind turbines.

CBRE IM is bullish on the “long-term macro digitalization and decarbonization tailwinds” that underpinned the sector's growth in recent decades, Managing Director of Private Infrastructure Strategies Robert Shaw said in a statement.

But he also acknowledged that renewables are facing strong headwinds, many of which stem from the political climate in the U.S.

“We believe that its differentiated partnership approach, strong track record and ability to move with speed and conviction provide unique certainty to distributed energy developers at a time of significant market uncertainty,” Shaw said.

President Donald Trump and his allies aren't fans of renewable energy.

The One Big Beautiful Bill Act, which passed last month, was already a mixed bag for sustainable projects, but Trump then signed an executive order to further restrict access to tax credits for shovel-ready solar and wind initiatives that would have previously been eligible under the law.

The OBBBA shortened the eligibility window for a 30% federal tax credit that these projects could previously receive.

Before the tax bill passed, entrepreneurs had until 2032 to begin construction using the tax credit. Projects must now be under construction before July 4, 2026, and “placed in service” by the end of 2027 to qualify.

The executive order put additional constraints on the definition of starting construction.

Projects where 5% of the system costs were already incurred were previously considered under construction for the purposes of the federal tax credit. The executive order eliminated that safe harbor mechanism, “unless a substantial portion of a subject facility has been built.”

It wasn’t immediately clear how the executive order would be implemented, but the IRS issued its guidance Aug. 15.

Solar projects of 1.5 megawatts or more that begin on Sept. 2 or later can no longer use the 5% safe harbor and must now pass a physical work test.

For solar projects, this could include the assembly of racks and support structures for panels, according to Husch Blackwell. For wind, that definition includes digging for turbines and pouring concrete foundations.