Financial modeling
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14 min read
Underwriting a solar asset is not a mystery. Finance partners work from a detailed checklist, looking for proof behind every representation you make.

Keith Cronin · Founder, SunHedge

People say they’ve seen a yeti, but haven’t been able to take a photo.
Rumors of footprints in snow or soil point to the stories, but we’re still waiting for evidence.
Speaking of evidence, when you think about underwriting a solar asset, finance partners are looking for a detailed checklist of items. They’re looking for proof of ____, in order to verify and validate the representations that you’re making.
These will often make or break a deal for you.
One of the simplest ways to remove friction and doubt is to be able to answer these questions, prior to submission of your project to a partner. Load up your data room with these essentials. Know the answers or try and find them together.
While this video and list aren’t exhaustive, it will give you a framework for thinking through the process. Each market is different and has perpetually moving incentives. Programs are amended frequently.
Underwriting is trying to determine the efficacy of the information you’ve collected. From the six categories and drilling down into each one. Some categories aren’t applicable if it is a rooftop, versus a ground mount.
The theme is the same: How quickly and accurately can the information be checked for accuracy to move funding forward.
Mapping a development plan to financing is a simple way to start thinking about this, so I used the Google sheet from a previous video for reference.
Having this understanding and mindset will save you hundreds of hours of your life and untold quantities of money.
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, SunHedge
Twenty years building, selling, and financing solar. Founder of Island Energy Solutions, President of SunEdison Hawaii, and instructor of the Solar Executive MBA.


