𝗗𝗲𝗺𝗼𝗻𝘀𝘁𝗿𝗮𝘁𝗲 𝘀𝗶𝘁𝗲 𝗰𝗼𝗻𝘁𝗿𝗼𝗹. This can be in the form of an exclusive LOI for a prescriptive period of time (3 - 6 + - months), roof/land lease, license agreement or another instrument that contractually binds you to the off-taker. What prevents someone else from coming in and gaining control and influence?

1. 𝗢𝗳𝗳𝘁𝗮𝗸𝗲𝗿. How are their financials? Audited? IS and BS? Positive cashflow? Debt? Mortgage? Vacancy rate? Property taxes? What is their story and how can you support looking at their situation and making a strong case for underwriting if they’re a private and non-rated entity? What is the risk and how will you mitigate it?

2. 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝘀𝘂𝗯𝘀𝘁𝗮𝗻𝗰𝗲. What program in the jurisdiction is your project/portfolio and does it save the off-taker money? Have a pro forma to reflect the value proposition and ensure it is up to date as local incentives can be updated and have beneficial or adverse impacts on your assumptions. Include a 1-2 page teaser to support the story arc further.

3. 𝗣𝗲𝗿𝗺𝗶𝘁𝘀. If it is a rooftop project, these can vary by jurisdiction but are often more straightforward. For something touching dirt, another realm altogether. Work with the local talent in your area to have a permit matrix. Missing one could kill a deal or delay it. What are the costs and how long will they take to get? Paid for the applications? Ready for pickup? (same for interconnection)

4. 𝗜𝗻𝘁𝗲𝗿𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝗼𝗻. We all see the saturation levels. Transformers are in hot demand like Nvidia GPU’s today and well into the future. What are you hearing from the utility and can you get them to commit to a schedule will make all the difference. Do you have firm dates in email correspondence that you can share? When will they do PTO and will you be ready?

5. 𝗦𝗰𝗵𝗲𝗱𝘂𝗹𝗲. As projects get momentum in the fall, do you have the team ready to execute on the Gantt provided? Are you anticipating weather delays, procurement challenges, and workforce resources in the math? Can you find ways to ensure completion in the calendar year per the APA/MIPA/EPC agreement(s) and be comfortable with LD’s if you are unable to?

6. 𝗧𝗲𝗮𝗺. Who’s on your team and how well do they know the market? How have they executed there in the past? What lessons have they learned? How do they work together when there are challenges? Execution risk is reduced when there is stellar communication in anticipation of challenges and contingencies in the “what if” scenarios. Development never goes according to plan. It’s what we do when the plan changes.

Perennially, things change in the finance world and this often happens as we get closer to the end of the year. Projects can be in limbo for months, waiting for items 4 & 5 above and some finance partners channel their resources elsewhere.