The truSolar Network commits to the truSolar Pledge. Additionally, D-SUN and the truSolar working group commit to form the non-profit 501c6 Accreditation Body (AB) to manage the truSolar Risk Screen Criteria & Methodology (RSCM), thus making truSolar an accessible, 'industry common good'.
This CTA aims to secure 20+ truSolar Pledges from financial, development, and vendor firms during the Summer 2014. The AB will publish case studies measuring truSolar impacts in four areas: 1) overhead costs; 2) sunk cost losses; 3) conversion ratios; and, transaction costs gains among those non-residential solar firms adopting truSolar. The AB will report any acceleration of capital deployment, reduction of capital costs, and any improved performance attributable to adoption.
truSolar? PLEDGE :
1. We applaud contributions of expertise, data, time and funding to truSolar and initiatives that promote beneficial standards in clean energy; and support truSolar efforts to better align risk and return in the capital markets.
2. We understand access to public capital and secondary markets is vital to solar becoming a significant asset class; and support the adoption of reliable financial technologies and underwriting practices that utilize frameworks like truSolar to achieve transaction cost efficiencies and scale.
3. We recommend the evaluation of truSolar and other risk screening methodologies, and may adopt them to support our customers and bottom-line results; and will share our advice or observations where we can as such efforts support investor and customer needs.
4. We support efforts to accelerate growth in the US solar marketplace, and believe widely adopted, standardized screening and scoring practices like truSolar may be key to US solar investments reaching trillion by 2030.
Pledges accelerate adoption and support the launch of the AB. Active members will contribute a combination of subject-matter-expertise, data, funding, and human resources, and will integrate truSolar into their operating practices. The types of additional partners being pursued include institutional financiers, solar market leaders, including developers and vendors, and other truSolar working group members.
Underpinning this new commitment are those commitments made by Distributed Sun and the truSolar Working Group as described below:
Q2 2014: Develop, test, & validate RSCM methodology through our Technical Committee.
Q3 2014: Establish the truSolar? Accreditation Body Charter and Sustainable Business Model.
Q3 2014: truSolar? Operational Launch to make the truSolar RSCM available to the broader market by establishing an initial member base of accredited and certified stakeholders that includes organizations throughout the solar industry value-chain.
Q1 2015: Grow the base of members to 50+.
Q2 2015: Identify global truSolar champions in two or more of the following solar markets: Europe, India, Caribbean /Latin America, Japan, China.
Q1 2016: Grow the base of members to over 100.
Publishing Case Studies: The team will deliver the first of these case studies by 2015 with the objective of measuring what portion of the estimated million per year, and growing, potential cost reduction gains can be attributed to truSolar adoption. The case studies will also explore any acceleration of capital deployment, reduced capital costs and improved reliability/performance may be attributable to adoption.
The U.S. solar market is experiencing strong growth, and is poised for explosive growth. However, the industry must standardize and professionalize to achieve trillion dollar scale. Today, non-residential solar transaction practices (project evaluation, diligence, underwriting, etc.) are bespoke and lack repeatable, scalable frameworks. There is no 'certified' methodology for risk screening and scoring. In the absence of adopted standards, operational and marketplace inefficiencies prevail. Sunk cost losses, deal dropouts, low conversion ratios and intractably high soft costs hinder market growth. This market friction is costly (estimated to exceed million of addressable savings in 2014 within commercial solar alone), unnecessary, and solvable. The project finance ecosystem of solar asset buyers and sellers needs a generally accepted quality and performance certification standard such as that which 'NABCEP-like' (North American Board of Certified Energy Professionals) provides for solar installations. The industry needs a 'U.S. Green Building Council' to introduce the benefits of common, reliable, market-driven methods. truSolar answers these needs.
Distributed Sun (D-SUN) and DuPont cofounded the truSolar initiative to develop uniform standards for solar asset screening, rating, and underwriting to reliably price risk, lower the cost of capital and increase the availability of primary and secondary market funding for solar. truSolar provides the industry's first uniform, transparent, affordable and accessible risk taxonomy to screen and score cash flow ($) and power production (kWh) risk criteria in non-residential solar. truSolar democratizes institutional best practice and promises to accelerate capital cost reductions, increase access to capital and grow the number of available (bankable) solar projects. truSolar anticipates that over 1,500 commercial projects will be screened using truSolar in 2014, and over 3,000 in 2015, representing over billion of prospective investments. truSolar aims to have 25%+ market share by the end of 2016, and 50%+ by 2018.
The truSolar team is seeking:
1) funding to help cover the initial overhead costs of an independent accreditation body that will house the truSolar Risk Screen and promote its usage within the broader renewables industry.
2) solar industry players and topic experts who would like to participate in the peer review committees that are refining the Risk Screen.