Credit Ready Checklist Reference Guide

System

Project Summary 

1) Format: Single line diagram(s) or system design schematic(s) Include the following: 

  • PV Size in kWdc and kWac (and battery size in kWdc and kWh, if any) 
  • Installation type (i.e., roof, ground, or canopy, or hybrid) 
  • Equipment summary (make, model, and number of all panels, inverters, batteries, and any other consequential equipment). 

2) Format: Spec sheet, including warranty, of all key equipment to be used. 


Site Control 

Format: Deed of ownership, signed lease, letter of intent (LOI), memorandum of understanding (MOU), email, or any other written document from the appropriate party clearly asserting as such, that includes: 

  • Street address of host site 
  • Description of building or land’s function 
  • Identification of site’s owner, and the signatory's authority to provide such authorization 
  • Indicative purchase or lease terms 

Permitting 

Format: Deed of ownership, signed lease, letter of intent (LOI), memorandum of understanding (MOU), email, or any other written document from the appropriate party clearly asserting as such, that includes: 

  • Street address of host site 
  • Description of building or land’s function 
  • Identification of site’s owner, and the signatory's authority to provide such authorization 
  • Indicative purchase or lease terms 

Interconnection

Format: Provide a document with the following 

  • All requirements the team will need to complete to submit for and receive interconnection approval. 
  • Any significant impediments (including costs) the team expects to encounter in their pursuit of an interconnection agreement. 
  • Estimated interconnection timeline for approval and receipt of permission to operate PTO, (including wait periods) after planned submission of application. 

Or Format: Submitted "Phase 1" / "Conditional" interconnection application. 


Current Phase

Format: Detailed project timeline with significant anticipated dates, to include: 

  • Past milestones already completed 
  • Notice to proceed (NTP) from distribution utility 
  • Mechanical Completion 
  • Substantial Completi 

Organizational and Ownership Structure

Ownership Structure

Format: Both a graphic (i.e. line and block chart) and narrative explanation of the ownership model, to include clear explanations of: 

  • Owner parties' roles 
  • Owner parties' percentage of benefits (e.g., revenue, savings, etc.) 
  • Owner parties' percentage of control 
  • How/why each party is selected. 

Key Team Members’ Roles

  • Format: Both a graphic (i.e. line and block chart) and narrative explanation of all key individuals and organizations playing a significant role in ensuring the project's success and how they will be involved, e.g., Broker/ Marketer; Developer; Engineering, Procurement and Construction (EPC); Operations and Maintenance (O&M) Provider(s); Operator; Subscription Manager. 
  • Format: Additionally, a letter of support confirming each key actor's role is required from each, which includes the relevant experience of each. 

Project Finances Included in Pro Forma

Pro Forma

Format: A pro forma in Excel that 

• Demonstrates financial sustainability while accounting for: 

      1. All initial costs 
      2. All sources of initial funding 
      3. All ongoing costs, revenues, and funding throughout the life of the project, in comportment with the project's business model and the correct project timeline 
  • Defines or explains meanings of all abbreviations and terms that may be ambiguous. 
  • Includes one pro forma per project. 

Planned Fund Sources 

Format: A concise table showing in dollars and percentages the origins of all planned funding sources. Include: 

  • Short term construction debt 
  • Long term debt 
  • Tax equity 
  • 3rd Party Sponsor Equity 
  • Own Sponsor Equity 
  • Grants 
  • All anticipated state and federal tax credits and incentives. 

Additionally, the table must articulate how much is expected in either Tax Credits or Direct Pay, and how much (if any) of these sources have already been secured. Bridge financing sources must be identified for any tax credits, direct pay, or other delayed funding streams. 

AND include all in the pro forma. 


Secured Fund Sources 

Format: Signed letter from any lender, investor, or any other funds provider from whom a guarantee of funding has already been secured. And include all in pro forma.


Incentives

Format: Ensure the details of the Incentives & Regulation box (under Project Business Model) are reflected in the pro forma. 


Construction

Format: Letter or executed contract from EPC partners and their estimated costs and timelines. AND all are reflected in pro forma. 


Operations and Maintenance 

Format: Letter or executed contract from O&M partners and their estimated costs. AND all are reflected in pro forma 


Interconnection

Format: Document from utility. And reflected in the pro forma. 


Other Capital Costs 

Format: All costs are reflected in pro forma.


Lease

Format: Signed good faith estimate or actual lease (or lease option) from site owner, and information is reflected in pro forma. 


Taxes

Format: Itemized list of applicable taxes and each reflected in pro forma. 


Project Business Model 

Clear Business Model

Format: Both a graphic and narrative explanation of the project's entire economic model, including clear articulations of: 

  • Process of all forms of revenue generation (e.g., solar lease, PPA directly with customers, sleeved PPA through utility, sale of volumetric/monetary credits, RECs, and federal/state/or local incentives, etc.), and monetary benefit distributions. 
  • Parties' percentage of benefits 
  • Parties' percentage of control. 

Subscriber Management 

Format: 

  • A narrative explanation of the project's entire subscriber acquisition and management strategy, including expected subscriber/beneficiary mix and any requirements for subscriber splits (commercial, residential, or LMI) 
  • A graphic or table representation of anticipated timeline 
  • Signed letters of support from any external organization necessary for the strategy's execution. 
  • Documentation verifying any subscribers already signed up. 

Incentives and Regulations 

Format: A bulleted list itemizing each applicable policy, to include incentives. For each include the relevant jurisdiction, regulatory cliff dates, and outline of key challenges to meeting regulation's requirements. 

Some more details of what is required below: 

  • Renewable Energy Certificates: signed contract or estimates from REC broker and length of contract 
  • State Programs and Incentives: Target net metering rates, community solar bill credits rates, LMI adders, storage adders, etc. have been identified. Documentation of the different programs the team is targeting and timeline to achieve them. Costs and revenues are reflected in the pro forma. 
  • Federal Incentives: Tax credits and other federal incentive programs have been identified. Documentation of the different programs the team is targeting and timeline to achieve them. Costs and revenues are reflected in the pro forma. 

Collateral

Format: Legal documentation of ownership of collateral (signed letter attesting to ownership). 


Guarantee

Format: Signed letter from guarantor. 


Risks

Format: Written summary identifying all major risks to the project's viability and sustainability and the team's plan to mitigate each. 


Community Support

Format: Signed letter(s) from key community stakeholders 


Equity

Equitable Access 

Format: 

Affirmative statement, signed, with: 

  • Detailed explanation to include anticipated beneficiary census tract numbers, income and racial demographics, and designating any that are on Tribal lands 
  • Clear articulations of consumer protections the team will put in place 
  • If applicable, the subscriber management contracts or program rules designating strong consumer protections. 
  • Explanation of how this meaningful benefit will be sustained in the event the project is sold. 

Household Savings

Format: 

Affirmative statement, signed, with: 

  • Exact percentage, or percentage ranges articulated 
  • Estimated net savings expected to be delivered to the LIDAC households after 5, 10 and 20 years 
  • Clear explanation of how these numbers are derived 

• Explanation of how this meaningful benefit will be sustained in the event the project is sold.

AND each should be reflected in pro forma. 


Storage and Resilience

Format: Affirmative statement, signed, with detailed explanation to include the exact size of the storage system(s), and how and for whom and for how long the resilience will provide benefits. Include an explanation of how this meaningful benefit will be sustained in the event the project is sold. 

AND costs are included in pro forma. 


Workforce Development

Format: Affirmative statement, signed, with: 

  • Detailed explanation of workforce development strategy to include cost of such support and the source of those costs 
  • Partner organizations 
  • Scale of the program 
  • Job placement support, including on this particular project 
  • Targeted recruitment pools 

• Explanation of how this meaningful benefit will be sustained in the event the project is sold.

AND each is included in the pro forma. 


Technical assistance is available to help you complete the items in the checklist. Contact CommunityPower@nrel.gov to request assistance. 

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