Distributed Sun took the opportunity at Greentech Media’s Solar Summit this week to launch its new financial tool: TruSolar, an underwriting platform that claims to test and pinpoint higher yield, but lower risk solar investment prospects. Aimed at adjusting solar finance risk one project at a time, the TruSolar process is said to be able to diminish a solar projects failure before, during and after construction while also escalating the success of a company’s solar portfolio.
“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,” stated Chase Weir, CEO of Distributed Sun.
Distributed Sun asserts that its TruSolar program can help alleviate default events and PPA revenue interruption that can occur from clients with an unrated, or less than investment grade, credit. TruSolar is said to produce a framework that lowers capital costs and supports trade credit insurance for PPA revenues by using rating tools that score project performance, site profile and counterparty risk conditions. “This level of risk mitigation is expected to increase certainty of PPA cash flows and reduce the cost of capital for commercial project finance,” confirmed Jeff Weiss, managing director of D-Sun's SEICs.
TruSolar looks to begin its program with 8MW of initial test projects this year and expand its product capacity in 2012.