Financing a C&I solar project can be a complex process, with multiple stakeholders, detailed requirements, and tight timelines. Even small missteps—like missing a key document or under-preparing for lender diligence—can slow things down or jeopardize a deal entirely.
At Energetic Capital, we sit at the crossroads of developers and lenders, working on transactions of all shapes and sizes. From small, agile teams to some of the largest developers and project finance banks in the industry, we’ve seen what works and what doesn’t when it comes to securing financing for C&I infrastructure. Our experience has taught us that the difference between a seamless process and a drawn-out one often comes down to preparation and organization.
In this article, we’re breaking down best practices that can save you time and frustration. You’ll also get access to a free data room template designed to help you put your best foot forward and close deals faster.
The Developer's Diligence Toolkit: Key Materials for Your Financing Data Room
To secure financing for your C&I solar project, assembling a well-organized data room with the right materials is essential. Lenders rely on this information to assess the project's viability, size the debt, and evaluate risk. Below, we outline a few of the key materials every developer should prepare to streamline the financing process and ensure a smooth review:
1. Project Financial Models
What it is: A detailed Excel-based financial model showing the project’s key assumptions and cash flow projections.
What it includes:
Production assumptions
PPA or ESA rates and escalators
REC/Incentive rate assumptions (contracted/uncontracted)
Asset degradation assumptions
Operating and maintenance (O&M) expenses
All other project expenses (insurance, site lease, etc.)
Sensitivity analyses for key variables
Why it matters: Lenders use this to size the debt appropriately and understand the financial health and risk profile of the project.
2. Power Purchase Agreement (PPA) or Energy Services Agreement (ESA)
What it is: The contract between the project asset and the offtaker detailing energy sales terms.
What it includes:
Pricing terms, escalators, and termination clauses
Contract duration and renewal provisions
Obligations of both parties
Why it matters: Lenders review these agreements to ensure they are bankable and aligned with the project’s financial model.
3. Offtaker Financial Information
What it is: Documentation that provides insights into the creditworthiness of the offtaker.
What it includes:
Three years of audited financial statements
Key financial ratios (e.g., debt-to-equity, liquidity)
Any existing credit ratings or guarantees
Why it matters: The offtaker's ability to meet payment obligations significantly impacts the project's financial stability and risk profile.
4. Permits and Approvals
What it is: Evidence of all required regulatory and environmental clearances.
What it includes:
Local, state, and federal permits
Interconnection agreements and grid approvals
Zoning and land use compliance documents
Why it matters: These documents ensure the project is legally authorized to operate and won’t face regulatory hurdles.
5. Construction and Material Contracts
What it is: Agreements with the EPC (Engineering, Procurement, and Construction) provider and other key contractors.
What it includes:
EPC agreements with milestone timelines
Major equipment supply contracts (e.g., panels, inverters, storage systems)
Warranties and performance guarantees
Why it matters: Lenders need confidence that the project will be completed on time and within budget.
6. Tax Equity Strategy
What it is: A plan or agreement outlining how tax equity investment will be structured.
What it includes:
Tax equity investor documents (letters of intent, commitments, broker agreement, MIPA, etc..)
ITC (Investment Tax Credit) or PTC (Production Tax Credit) calculations
Expected contribution timelines
Why it matters: Lenders often require clarity on tax equity funding as it can materially affect the project's overall financing structure.
7. Insurance Coverages
What it is: Policies that protect the project against operational and financial risks.
What it includes:
General liability insurance
Property and casualty coverage
ITC insurance (if applicable)
Credit insurance to de-risk offtaker payments (if applicable)
Why it matters: Comprehensive insurance ensures financial protection against unforeseen risks that could disrupt cash flows.
8. Project Timeline
What it is: A detailed schedule from construction to commercial operation.
What it includes:
Construction start and completion dates
Permitting milestones
Expected commercial operation date (COD)
Why it matters: A clear timeline helps lenders assess the feasibility of construction-to-permanent financing and align on key disbursement milestones.
By preparing these materials in advance, developers can demonstrate professionalism, reduce back-and-forth with lenders, and accelerate the financing process.
Free C&I Developer Data Room Template
When it comes to presenting your project to potential financiers, organization is everything. While this template isn’t a one-size-fits-all solution, it provides a robust starting point. By ensuring that every folder contains the relevant information for your specific project or portfolio, you’ll be in a much better position to streamline the financing process, reduce delays, and improve the chances of success.
Our template is designed with simplicity and clarity in mind, breaking down your project’s data into clearly labeled folders and subfolders. Each section reflects the key diligence items lenders expect to see, helping you present your project as a polished, professional opportunity.
Why Energetic Capital Can Make a Difference
Financing C&I renewable energy projects often comes with unique challenges, from addressing offtaker creditworthiness to organizing complex project details. At Energetic Capital, we’ve seen firsthand how the right tools and preparation can transform this process. With transactional experience spanning hundreds of projects, we’ve worked with developers of all shapes and sizes—from small, independent teams to some of the largest players in the industry—to navigate these hurdles and achieve financing success.
Our position at the intersection of developers and many of the leading project finance banks gives us a deep understanding of the critical factors that streamline approvals and secure better terms. This perspective enables us to provide actionable insights and practical solutions, helping developers create a more efficient financing journey.
How We Support Developers
Addressing Gaps in Financing: With tools like credit insurance, we help developers overcome challenges related to offtaker credit or other perceived risks, ensuring your project meets lender requirements.
Improving Financing Outcomes: By understanding what leading lenders prioritize, we guide developers in organizing materials and presenting projects in a way that resonates with financiers.
Building Confidence: Our experience across a diverse range of projects means we can anticipate challenges and proactively help you address them, making the financing process smoother and more predictable.
At the end of the day, our goal is to help developers like you focus less on the complexities of financing and more on building renewable energy projects that make an impact. If you’d like to learn more about how our insights and tools can help you take the next step, we’re here to share our expertise.
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