Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes    

The income tax benefit rate for the three months ended September 30, 2025 and 2024 was 0.8% and 3.2%, respectively, and for the nine months ended September 30, 2025 and 2024 was 19.9% and 2.7%, respectively. The differences between the actual consolidated effective income tax rate and the U.S. federal statutory rate were primarily attributable to the allocation of losses on noncontrolling interests, income tax expense related to the valuation allowance, and income tax benefit related to ITC (as defined below) transfer proceeds to the Company.

The Company sells solar energy systems to Funds. As the Funds are consolidated by the Company, the gain on the sale of the assets has been eliminated in the consolidated financial statements, however gains on sale are recognized for tax purposes and the tax effects of which, both current and deferred, are included in the Company’s income tax provision.

The Company enters into investment tax credit (each, an "ITC" and collectively, the "ITCs") transfer agreements with third-party transferees to transfer to such third-parties, for cash, the ITCs generated by certain solar energy systems that have been or will be placed in service. The Company accounts for its share of ITC transfer proceeds under ASC 740, Income Taxes, as a reduction of income tax expense in the consolidated statements of operations during the year in which the credits arise (i.e., the flow-through method) and the tax equity investor’s share is distributed upon receipt. During the three months ended September 30, 2025 and 2024, the Company recognized income tax benefit from ITC transfer proceeds to the Company of $2.2 million and $13.8 million, respectively, and during the nine months ended September 30, 2025 and 2024, $207.7 million and $32.4 million , respectively.