By CitiGreen Inc. | Nov 05, 2025
The next frontier of clean energy is here, and CitiGreen is leading it through Solar H2, a new subsidiary focused on developing large-scale green hydrogen facilities powered by solar energy.
These projects represent the next evolution of CitiGreen’s renewable energy portfolio and open the door for investors and property owners to participate in the growing clean fuel market.
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What Is Green Hydrogen and Why It Matters
Green hydrogen is produced through electrolysis, a process that uses renewable electricity to separate water into hydrogen and oxygen. Because the electricity comes from solar energy, no fossil fuels are involved, and the result is a clean, carbon-free fuel that can power vehicles, industrial operations, and energy storage systems.
Hydrogen is already being adopted by fleet operators, industrial users, and governments across California. It is expected to play a major role in meeting the state’s long-term emissions goals while supporting domestic clean fuel production.
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Who Would Want a Project Like This
The ideal participants include:
• Investors seeking to diversify into clean energy assets that can generate long-term cash flow.
• Property owners with industrial or agricultural land suited for energy infrastructure.
• Fleet operators or manufacturers looking for reliable, low-carbon hydrogen supply.
• Counties and local governments interested in job creation and sustainable development.
CitiGreen’s Solar H2 projects are designed to connect all of these groups, creating a complete local hydrogen ecosystem.
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How the Project Generates Revenue
Each Solar H2 facility will use solar energy to power a 1.5 MW electrolyzer that produces roughly 110,000 kilograms of hydrogen per year.
That hydrogen is then sold to commercial and industrial users, primarily for fleet fueling and offsite delivery.
Revenue is generated through the sale of hydrogen at wholesale rates, similar to how solar electricity is sold under power purchase agreements.
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How Investors and Partners Make Money
Investors in these projects participate through ownership of the project entity or through structured equity. Profits come from:
• Hydrogen sales to offsite buyers such as fleet operators or energy distributors.
• Federal tax credits available under Section 45V for clean hydrogen production.
• Long-term appreciation of renewable infrastructure assets as clean fuel demand grows.
Returns depend on project scale, hydrogen pricing, and utilization rates, but federal incentives help stabilize and accelerate early profitability.
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When and How Participants Get Paid
Revenue begins once the hydrogen plant is operational and begins producing saleable hydrogen. Depending on project timing, that can occur within 12 to 18 months of groundbreaking.
Investors are typically paid from hydrogen sales or tax credit monetization. CitiGreen manages the project, oversees hydrogen delivery, and handles compliance, giving participants a hands-off ownership experience.
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Cost and Upfront Requirements
A full-scale Solar H2 facility, including land, solar array, and electrolyzer, is projected to cost approximately $2.7 million per megawatt of capacity.
CitiGreen intends to finance most of this through a mix of equity investment and project debt, allowing investors to enter at flexible contribution levels.
Property owners who already have a suitable site can contribute land to the project, reducing capital costs while retaining a share of future revenue.
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Incentives for Starting Before the End of 2025
Yes, Solar H2 projects can qualify for federal Investment Tax Credits (ITCs) when construction begins before the end of 2025, similar to traditional solar projects.
By committing before December 31, 2025, investors and property owners can benefit from:
• 40–50% federal tax credit on eligible project costs.
• Additional credits under Section 45V for clean hydrogen production once the plant is operational.
• Preferred access to verified domestic equipment that is compliant with current FEOC rules.
After 2025, both incentive eligibility and equipment pricing may change. Signing agreements and securing interconnection now provides the most stable path forward.
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What If You Already Have an Ideal Property
If you own land that is flat, accessible, and near existing power infrastructure, it could be an excellent candidate for a green hydrogen site.
CitiGreen can assess your property’s feasibility, zoning, and grid access at no cost.
Projects are typically suited for industrial or agricultural zoning with adequate space for solar generation and hydrogen equipment. A site with both power and road access can dramatically shorten the development timeline.
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Benefits and Drawbacks
Benefits:
• Strong federal incentives through 2025.
• Long-term revenue potential from hydrogen sales.
• Supports clean energy goals and energy independence.
• Creates local jobs and infrastructure investment.
• Aligns with California’s renewable fuel strategy.
Drawbacks:
• Higher upfront capital cost than standard solar.
• Hydrogen infrastructure and permitting are still developing in some counties.
• Revenue begins only after construction and commissioning are complete.
CitiGreen helps mitigate these challenges through careful site selection, phased development, and partnerships with reliable equipment suppliers.
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Why CitiGreen
CitiGreen has over a decade of experience designing and financing commercial solar systems throughout Northern California.
The Solar H2 division builds on that foundation by combining solar generation with hydrogen production to create clean fuel directly at the source.
CitiGreen manages every phase of project development, from feasibility and engineering to financing and interconnection, ensuring compliance with all federal, state, and utility requirements.
Our team’s experience with Rule 21 interconnection, tax credit qualification, and project-level financing gives Solar H2 a competitive advantage in delivering profitable, compliant hydrogen facilities.
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The Point
The shift to clean hydrogen is already underway. By partnering with CitiGreen and Solar H2 now, investors and property owners can take part in shaping California’s next generation of renewable energy while benefiting from valuable tax incentives before they expire.
Whether you are an investor seeking strong returns or a property owner with a promising site, now is the time to explore what a Solar H2 project could mean for you.
Contact CitiGreen today to discuss available investment and property partnership opportunities.est your free proposal and secure your 2025 pricing and incentives while they last.
