At the Clinton Global Initiative in Denver this week more than 20 companies announced they will support the adoption of the truSolar Initiative’s standards. The standards offer the solar industry a uniform risk assessment methodology that’s governed by an accreditation body.
Companies began working on the truSolar Initiative in 2013. It was designed as a way of providing a uniform risk-screen allowing potential project investors to better understand the costs and risks associated with investing in a solar project, and to help lower the cost of such financing for solar projects. At this point it focusses on non-residential projects.
“The industry gains from deal cost efficiencies that follow with truSolar standardization could be worth more than $500 million a year by 2018,” said Chase Weir, CEO of Distributed Sun and co-founder of truSolar. “Eliminating friction in the diligence and closing process can unlock billions of dollars of savings and drive a groundswell of new commercial installations in the US and globally.”
The working group is comprised of leaders in solar project asset management, development, engineering, construction, finance, legal, manufacturing, insurance and ratings. "truSolar is a voluntary, industry-led effort that believes widely adopted, standardized screening and risk scoring practices will be key to helping US solar investments reach $1 trillion by 2030," Weir said.
"This is about making a big impact," said Jules Kortenhorst, CEO of Rocky Mountain Institute and a founding member of truSolar. "truSolar offers enormous potential to promote savings, growth and education for commercial solar installations. When capital markets have a reliable approach to accurately predict performance and reliably forecast default rates for solar systems, American businesses will invest in greater numbers in commercial solar—lowering their energy costs and reaping the benefits of cleaner, more resilient power sources."
Among the companies and organizations participating in truSolar are ABB, ABM, Assurant, Booz Allen Hamilton, Distributed Sun, DuPont PV Solutions, Mosaic and UL (Underwriters Laboratories). In addition U.S. National Labs NREL and Sandia also contributed to the effort. The organization plans to expand rapidly growing from the more than 20 today to more than 100 over the next 18-24 months.Tweet