Accounting Services for Renewable Energy Companies: Power Your Growth Without the Headaches
The renewable energy sector isn’t just about clean power. It’s a labyrinth of complex contracts, multi-layered financial structures, tax incentives, and regulatory frameworks that can make even the most experienced executives sweat. At Pearl Lemon Accountants, we don’t just crunch numbers we solve accounting problems specific to renewable energy companies like yours. Whether you’re managing depreciation schedules for wind turbines, handling Special Purpose Vehicles (SPVs), or calculating Production Tax Credits (PTCs), we’ve got the expertise to keep your financial operations clean and compliant.
Our Services Solving Your Challenges, One Process at a Time
From compliance headaches to financial clarity, we provide solutions that keep your renewable energy business on track.
SPV Accounting and Financial Consolidation
When you operate renewable projects under multiple SPVs, keeping track of assets, liabilities, and capital flows gets messy fast. We simplify your consolidation under ASC 810, automating processes to ensure monthly reports are accurate and timely.
- Consolidate up to 30 entities with minimal manual input.
- Stay compliant with GAAP and IFRS consolidation rules.
Depreciation Schedules and Fixed Asset Reporting
Equipment like wind turbines and solar panels have long depreciation periods but sped up tax allowances. We maintain dual-ledger systems so that both your accountants and tax advisors work from consistent data.
- Synchronize depreciation schedules between financial and tax reports.
- Minimize audit adjustments related to asset impairment and useful life assumptions.
Power Purchase Agreement (PPA) Revenue Recognition
Contracts for power sales are critical to your business, but their revenue recognition rules are anything but simple. Performance obligations can vary based on contract structure, and derivatives require additional scrutiny under ASC 815.
- Implement compliant revenue recognition models for milestone and output-based PPAs.
- Ensure proper hedge accounting for VPPAs and other derivatives.
Tax Credit Strategy and Compliance
Renewable energy tax incentives are lucrative but come with stringent reporting requirements. Many companies miss opportunities due to poor documentation or wage compliance issues.
- Increase credit eligibility with payroll structuring to meet prevailing wage rules.
- refine PTC and ITC claims, resulting in millions of dollars in recovered credits.
VIE Compliance and Risk Management
Entities structured as partnerships, LLCs, or project finance vehicles often require a VIE assessment. Misclassification can result in misstated financials.
- Perform detailed analyses of equity and control rights under ASC 810.
- Mitigate financial misstatement risks by clarifying control structures.
Common Questions From Our Clients
Many firms fail to align their tax schedules with accounting schedules. This results in confusing reports and potential audit findings. Our dual-ledger systems ensure depreciation methods stay synchronized.
ASC 606 requires that you identify distinct performance obligations in your PPAs. Depending on the contract terms, you may need to recognize revenue as milestones are achieved or based on energy output. We handle this entire process to ensure compliance.
Tax equity investors fund projects in exchange for tax benefits like PTCs and ITCs. Proper financial structuring and compliance are crucial to maintaining investor confidence and legal compliance.
VIE classification hinges on factors like control rights and equity sufficiency. Our team conducts a full review to determine if consolidation is required under ASC 810.
If you’re ready to stop firefighting financial issues and focus on growing your renewable energy projects, we’re here to support you. Let’s solve these challenges together with practical, expert-led accounting strategies designed specifically for your industry.
