Distributed Sun LLC (D-SUN), a Washington, D.C.-based project developer and independent power producer, has developed TruSolar, a new underwriting process that is designed to rigorously test and identify high-yield, low-risk solar investment opportunities.
The system works to reduce project failure before, during and after construction, and increases the bankability of the company's solar pipeline, according to D-SUN. TruSolar is also designed to mitigate events of default and power purchase agreement (PPA) revenue interruption from power off-takers with unrated credit.
By scoring project performance, site profile and counterparty risk criteria with sophisticated rating tools, D-SUN provides a framework to lower capital costs and support trade credit insurance for PPA revenues, the company says. Until now, virtually all PPA financing within the commercial segment had been with rated credit counterparties, which represent only a small fraction of commercial real estate owner and tenant sites, according to D-SUN.
SOURCE: Distributed Sun LLC