truSolar® Strengthens Its Solar Risk Assessment by Forming Accreditation Body and Adopting SAPC Documents

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The truSolar Working Group announces it’s forming the truSolar Accreditation Body, and adopting the Solar Access to Public Capital (SAPC) commercial documents. This is an important move forward for risk assessment of commercial solar projects.

 

Today the truSolar® Working Group made two important announcements: It’s forming the truSolar Accreditation Body, and adopting the Solar Access to Public Capital (SAPC) commercial documents.

 

truSolar is integrating the SAPC commercial PPA terms with its Risk Screen and Criteria Methodology (RSCM), and will score deviations from these standard terms against BETA testing of projects during Q2.

 

The SAPC documents have been widely supported by the solar industry. Mercatus, an enterprise-level investment analysis and decision-making platform for solar energy investors, has also recently adopted the SAPC standard contract documents.

 

Convened by the U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL), SAPC aims to accelerate the securitization of solar assets and cash flows as secondary markets begin to play a material and positive role in the industry.

 

The truSolar Working Group was formed in 2012 to to standardize the screening of solar assets and save millions. The idea was to develop a uniform way to screen for risk for nonresidential solar development and finance. That standardization leads to significant industry gains from transaction efficiencies and deal cost reductions. The group estimates that those gains could be worth more than $500 million a year by 2018.  

 

Furthermore, the group says that eliminating friction in the diligence and closing process can unlock billions of dollars of savings, as solar becomes a trillion-dollar asset class in the coming decade.

 

truSolar has been collaborating with SAPC since its formation in 2013.

 

“Launching the Accreditation Body is well-harmonized with the efforts of SAPC,” said NREL Senior Financial Analyst Michael Mendelsohn in a press release. “truSolar will provide a robust, independent risk assessment methodology open to broad industry participation consistent with SAPC.”  

 

Mendelsohn believes the Accreditation Body can play a valuable role in standardizing C&I project risk analysis and lowering the associated due diligence and financing costs.

 

Rocky Mountain Institute (RMI) chairs the truSolar organizational committee. With support from market-leading businesses throughout the solar industry value-chain, RMI is leading the formation of the Accreditation Body. The national body will be an independent nonprofit organization committed to widespread adoption of uniform, accessible, and affordable risk scoring standards and rating criteria for nonresidential solar projects.

 

“truSolar Working Group members are excited about the opportunity to take our collaboration with SAPC and the national labs to the next level,” said Jon Creyts, Managing Director at RMI.