SOURCE: Distributed Sun
March 15, 2011 11:35 ET
Distributed Sun Announces TruSolar™
A Project Performance & Risk Rating System for Commercial Solar Finance
PALM SPRINGS, CA--(Marketwire - March 15, 2011) - Distributed Sun LLC (D-SUN), a DC-based project developer and independent power producer, announced another innovation in solar finance today at Greentech Media's Solar Summit. D-SUN has developed TruSolar™ -- an underwriting process that rigorously tests and identifies higher yield, lower 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.
TruSolar™ is also designed to mitigate events of default and PPA revenue interruption from power off-takers with unrated -- less than investment grade -- 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 power-purchase-agreement revenues. Until now, virtually all PPA financing within the commercial segment has been with rated credit counterparties -- which represent only a small fraction of commercial real-estate owner and tenant sites.
"TruSolar™ is ultimately about risk assurance and insuring risk, and introduces a potential game-changer for us and the marketplace. Overcoming cross-collateralization and investment grade counterparty limitations within the distributed generation segment opens a much larger addressable market opportunity, and solves to pace and scale like few other finance innovations can," says Chase Weir, CEO of Distributed Sun.
While D-SUN has already solved the issue of counterparty risk through its Solar Energy Investment Company (SEIC) model, and its first SEIC, sunONE, it did so via portfolio diversification with the same investors within one investment structure distributed across four states. With TruSolar™, the company looks to adjust solar finance risk one project at a time.
"This level of risk mitigation is expected to increase certainty of PPA cash flows and reduce the cost of capital for commercial project finance," adds Jeff Weiss, Managing Director of D-SUN's SEICs. TruSolar™ targets 8 MW of initial test projects in 2011, and expansion of product scope in 2012.
Leading the next-generation of solar business and finance model innovation, D-SUN installs significantly more solar capacity per dollar invested than the national average, while offering one of the most competitive solar power discounts available. That means D-SUN's model is better for ratepayers, taxpayers, and the environment -- and for investors, who achieve better returns at lower risk than the industry norm. Its first Solar Energy Investment Company (SEIC), sunONE, is fully commissioned and serving power to Mid-Atlantic sites in 2010, and delivered nearly three times the industry average project yields.
ABOUT D-SUN: www.distributedsun.com