Due diligence

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2 min read

Solar development and financing have a lot to do with a "crime scene".

Solar development and financing have a lot to do with a "crime scene".

Like a CSI investigation, solar financing comes down to evidence. Lenders follow the clues in your documents to get to the truth about a project.

Keith Cronin, founder of SunHedge

Keith Cronin · Founder, SunHedge

What?

“I….am going to get to the truth”, CSI Lieutenant, Horatio Caine.

As you watch this brief clip and his cliché one-liners, there are clues.

The situation facing all developers yesterday, today and tomorrow will always come down to sort of “whodunit”.

Or maybe it is, “who didn’t do it” or “what still needs to be done” or “what is missing to move the project forward”. This is on the origination side or on the acquisition side.

Like in a CSI type of show, each episode starts with a situation and or an encounter and then something happens.

The police show up looking for evidence and clues, as the crime scene seems complicated with all sorts of potential clues and leads to figure out where to begin looking. It often brings up more questions than answers, initially.

Our “crime scene” elements are many. Site control, permitting, interconnection, engineering, legal, finance, accounting, incentives, co-development agreements, schedules, documentation, responsibilities, construction, and O&M to name a few.

Today we’re throwing in additional complexities of energy storage, merchant risk, ITC adders, interest rates uncertainty, tax credit transferability, Domestic content, labor shortages, public policy movement, all exciting things.

And like the end of the song on this show, the song ends with “we don’t get fooled again”.

As a developer or EPC working with the finance community, we’re all seeking to make new mistakes and not the same old mistakes.

If you have a project or portfolio with potential issues, be candid and let us know. Perhaps we can solve it together.

We all want to get to the truth. Horatio, you and I.

If you need help sorting out your project, let me know and we’ll find the missing evidence together, to get your next PPA.

If you have a project that needs a PPA and you’re are at the end of your “episode”, shoot me a message.


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Due diligence

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READY WHEN THE DATA ROOM IS

Have a project between LNTP and PTO? Send what exists today. You will know within two business days whether it is fundable, and what is missing if it is not.

WRITTEN BY

Keith Cronin, founder of SunHedge

Keith Cronin

Founder, SunHedge

Twenty years building, selling, and financing solar. Founder of Island Energy Solutions, President of SunEdison Hawaii, and instructor of the Solar Executive MBA.

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