Quality Matters - Join Us Today
Quality Matters is a group comprised of industry leaders that believe quality is essential for successful industry growth. Currently, there is an effort underway to develop a National Quality Assurance Protocol, being led by some of the leading solar finance providers. This protocol would ensure a consistent level of quality
of equipment and installation of residential-scale Solar PV for the solar finance industry.
The National Protocol will provide the following benefits:
- Increase Investor Confidence in portfolio (fleet) performance
- Provide a mechanism for solar asset rating for future Securitization
- Adopt a minimum quality standard to prevent a race to the bottom in terms of quality
Creating a system where a third-party ensures solar PV systems are installed per a national protocol is essential for investors in the secondary market. Trading paper without a physical record of the assets and the verification that each solar PV system is installed correctly poses potential risks. Investors can gain comfort through a standard certification process.
The capitalization model for securitization of residential Solar PV leases will only be effective when the assets can be accurately rated, assessed, measured and defined through a uniform protocol. This could include a uniform rating of the installer's qualifications, financial terms, the installation, system performance, maintenance schedules, and other performance metrics.
Securitization provides a pathway to large-scale capital markets and significantly lower interest rates. This brings down the cost of Solar PV to consumers, giving solar companies access to virtually limitless funds as long as these assets continue to perform.
Creating a realistic and manageable yet comprehensive set of standards is in the best interest of leadership – both private and government – to responsibly assure this growth market remains healthy and viable for generations to come.
Active involvement from all stakeholders including installer, manufacturer, engineering/ design, and the investment community should be engaged. The expertise of Industry practitioners is essential to best-defining the criteria and process for assuring quality.
If you are interested in pursuing a National Standard as a solution, please email Dana Johnston at email@example.com. Join the discussion on LinkedIn: Quality Matters – Solar PV and take a look at our Thought Leadership.