Tom Bitting Joins the Social Entrepreneurship & Sustainability Show  

August 12, 2025 

Episode Summary 

Tom Bitting, Advantage Capital Managing Director, appeared on Dr. Faiz Kamaludin’s Social Entrepreneurship and Sustainability Show podcast to talk about how innovative funding approaches, tax incentives, and risk mitigation are reshaping renewable energy availability, job creation, and U.S. expansion. 

Listen to the full episode on Spotify or Apple Podcasts.  

Our Background in Renewables 

Advantage Capital is an impact investing firm that has been driving capital to underserved areas for more than 30 years, largely through public-private partnerships. While we’ve long invested in small businesses and affordable housing, we expanded into renewable energy in 2016. Today, we support both the financing and development of renewable energy projects. These investments not only deliver environmental benefits but also boost local economies, strengthen the power grid, and help keep energy prices low. 

Tax Credits That Transformed the U.S. Renewable Energy Landscape 

Federal tax credits have played a critical role in advancing renewable energy technologies since the 1990s. By reducing financial risk and attracting private investment, these incentives helped bring once-niche technologies like wind and solar into the mainstream. 

• Production Tax Credit (PTC): Established by the Energy Policy Act of 1992, the PTC offers tax credits based on the amount of renewable energy produced and sold to the grid. It aimed to decrease financial risk and ensure stability over time, crucial for infrastructure projects needing substantial capital. Before the PTC, wind energy was considered an uncommon technology. Though the credit directly supported the underlying wind projects, the policy stability led to a rapid increase in project development and catalyzed a massive domestic supply chain being built in the U.S. 

• Investment Tax Credit (ITC): The ITC provides credit based on the upfront cost of building and commissioning a renewable energy project. Strengthened by the Energy Policy Act of 2005, the ITC played a pivotal role in accelerating the growth of the solar industry. 

• Inflation Reduction Act (IRA): Passed in 2022, the IRA gave the renewable energy sector its biggest boost yet. It extended and expanded both the PTC and ITC, added new credits for emerging technologies, and introduced bonus incentives for projects that meet domestic content, energy community, or workforce requirements. The act brought long-term policy certainty and unlocked unprecedented levels of renewable energy investment and deployment. 

Continued policy certainty has helped build a domestic supply chain around the renewable energy industry, including module manufacturing and battery production, bringing key manufacturing back to the U.S. These investments create not only direct renewable energy benefits but also broader impacts like job growth and community development that extend well beyond the credit recipients. 

Historically, 4 out of 5 potential renewable energy projects never reach completion due to challenges from permitting, supply chain delays, or lack of buyers. Long-term policy certainty helps more projects clear these hurdles and reach the finish line, bringing renewable energy and economic benefits to more communities. 

How Renewable Energy Adoption Helps Keep Power Prices Stable 

Advantage Capital works with institutional investors to expand renewable energy, which helps keep power prices low. For decades, U.S. energy demand remained flat thanks to efficiency gains like LEDs and advanced manufacturing. But with the recent surge in energy demand from data centers, AI, and EVs, demand for power is growing at rates not seen in generations. Thankfully, renewables have been there to meet most of that demand, providing more than 90% of new electricity generation last year. Though the rapid surge in demand should normally lead to spikes in energy costs (supply and demand), states that have actively pursued and supported renewable energy projects have seen energy costs remain largely stable, while states with less renewable energy are seeing price increases. 

Navigating the Complexities of Renewable Energy Financing 

Financing renewable energy projects is complex and capital-intensive. Developers must secure significant funding before construction begins, often investing heavily just to reach that point. 

Advantage Capital plays a critical role by monetizing the tax credit portion of the capital stack, whether it be via a tax equity partnership or a tax credit transfer transaction. We navigate the complex partnership structures needed to maximize the value for not only our investors, but also project owners. This requires close coordination with the developers, lenders, investors, and all parties involved to align on the structure and ensure the capital is in place to get the project built. 

From Banking to Renewables: How Risk Expertise Drives Smarter Energy Investment 

Tom brings two decades of experience to the table, including nearly a decade of banking experience with a focus on credit risk assessment. His job was to identify and minimize risk, a mindset he now brings to renewable energy, where one thing is certain: original projections will change. The key, he says, is to stay clear-eyed and focus on mitigating the biggest risks. If you invest based on strong fundamentals, you’re more likely to ride out the inevitable shifts. 

While Tom didn’t come from the energy sector, the fundamentals spoke for themselves: costs were falling, adoption was accelerating, and federal policy provided long-term support. Global energy demand continues to grow, and in the near term, only solar, wind, and battery storage can scale quickly enough to meet it. Natural gas generation infrastructure is already stretched, and nuclear energy faces regulatory and logistical delays, likely at least a decade out, even with reforms. Despite occasional policy uncertainty, the long-term supply-and-demand outlook for renewables remains strong. 

Global vs. U.S. Renewable Incentives: What Developers Need to Know 

The U.S. uses a unique approach to renewable energy incentives, primarily through tax credits that lower development costs. In contrast, much of the world incentivizes renewables by directly paying for the energy produced. 

While U.S. policy is currently pulling back some incentives, other regions—like Australia, Asia, and Europe—are accelerating investment to meet growing energy demand. No matter the location, the global need for energy is strong, and the fastest-to-market sources—like renewables—will continue to see high demand. 

The Local Impact of Renewable Projects: Economic Benefits vs. Public Perception 

Not everyone wants energy infrastructure in their backyard—whether it’s a solar field, wind turbines, coal, natural gas, or nuclear. Each comes with trade-offs, from visual impact to pollution, or safety concerns. 

However, local communities can greatly benefit economically from renewables. For example, the Hornet Solar project in rural Texas will generate more than $75 million in tax revenue over 35 years, adding an average of $2 million annually to a county with a $6 million annual budget. These funds will support community schools, public safety, and infrastructure. 

States with supportive, pro-growth policies—like Texas, the nation’s top energy producer—make it easier and faster to build, resulting in more stable grids and lower consumer energy costs. In contrast, regions with more complex permitting and regulatory barriers often struggle to attract the development they desperately need. Long-term policy certainty, especially at the federal and state levels, is essential for renewable development to succeed. 

Why Energy Storage Is the Next Big Opportunity in Grid Stability  

Over the next 5–10 years, Tom is most excited about the rapid growth of energy storage. From a grid stability perspective, it’s one of the most critical advancements beyond adding new generation. Historically, the grid has operated on a “use it or lose it” basis, with no ability to store excess energy for future use. 

Battery storage changes that, regardless of how the power was generated. Utilities can better manage demand and improve reliability, especially during extreme weather. During a recent heatwave in New Orleans, for example, more than 100,000 residents lost power because the grid couldn’t handle the surge. With storage, that excess energy could have been buffered and deployed in real time. 

Batteries offer unmatched precision, and recent legislation preserved key incentives, reinforcing both policy support and growing market demand. 

Learn More About Our Work in Renewables  

Interested in finding out more about our renewables work? Contact us or visit our renewables page.  

---