As subsidies wane and governments step aside, the solar sector becomes more dependent on private sources of capital for financing projects. As new players enter the market, they must compete to attract financial partners.

Dallas-based Principal Solar Inc. (PSI) is one of a number of up-and-coming companies seeking to make their fortune in the solar sector by acquiring projects, hoping to become a “distributed solar utility that buys solar.” One of the ways PSI went about demonstrating its suitability as a partner for equity providers was to found and fund the Principal Solar Institute, an independent research organization for evaluating and rating photovoltaic modules and manufacturers.

Matthew Thompson, executive director of the institute, says the organization formed as a way for the very-much-for-profit PSI to independently evaluate solar assets it contemplated purchasing. Essentially, the institute grew out of due diligence work. The research team has amassed a database of about 12,000 PV modules from nearly 400 manufacturers.

The rating system revolves around the testable characteristics of the PV module using a formula that weighs temperature, power ratings and warranty information. Thompson says he and his team are constantly evaluating and reevaluating their methodology in order to remove the subjectivity. Currently, the institute has boiled its formula down to seven characteristics.

“Every single factor is an objective measure,” Thompson says.

While the rating system for PV modules and manufacturers grew out of due diligence efforts, what’s interesting is that the institute gives its ratings away for free on its website. According to Thompson, the institute wants to support the solar sector, providing a way for commercial- and utility-scale solar developers to make sound technological and financial decisions about the products and manufacturers they choose.

Of course, in giving its research information away for free, the institute is essentially allowing PSI’s potential competitors to benefit from its investment. This doesn’t bother Thompson.

“I think there is enough business out there that we can all get rich,” he says.

You can find the Principal Solar Institute’s PV module and manufacturer ratings on its website, principalsolarinstitute.org. S