Due Diligence Process

The VALTA capital team strives to make the diligence process as transparent as possible. Below is a list of what is needed for each phase of the process.

The table lists the documents we typically review during each phase. It also explains what our team is looking for within those documents.

Initial Review

  • A preliminary look at your project to see if it meets our basic investment criteria. This occurs before signing a Term Sheet.

Full Due Diligence

  • A deep dive into your project to get our full legal/financing approval. This occurs after signing a Term Sheet.

COD Conditions

  • A check to make sure you’ve met a handful of closing requirements. This occurs before final payment.

DOCUMENT

WHAT WE LOOK FOR

SYSTEM SPECS
Preliminary Site Plan- The preliminary site plan should show the array’s layout on the site, including the proposed string configuration, inverter placement, and tie in points. It should further specify the azimuth and type of installation. We use the preliminary site plan to confirm that the proposed system design matches the size, equipment specs, anticipated production level, and location information that we have been provided previously.
Production Estimate- An energy yield assessment predicting the amount of energy a project will produce. We examine the report to confirm that production matches the production assumptions in our model. If the production estimate does not match our assumptions, we adjust the purchase price to reflect the discrepancy.

INTERCONNECTION
Interconnection Agreement- Copy of the utility’s standard interconnection agreement. We review the interconnection agreement to see what technical requirements, operating parameters, and additional costs need to be included in our model. We also look at the agreement to see when deposits or other payments are due and to ensure that the project is up to date on payments. We additionally note any restrictions on assignment, as well as any drop-dead dates and curtailment provisions.

PROJECT ECONOMICS
PPA (Proposed or Executed- An agreement providing for the sale of power from the project LLC to an offtaker. We thoroughly review PPAs to assess a project’s economics and financing viability. We look to confirm that the PPA supports every relevant assumption made in our model, and that all supporting documents called for in the PPA are accounted for.

SITE CONTROL
Site Lease- The agreement that secures site control and site access for the project. We look at all the terms of the site lease and confirm it covers the property identified as the site location. We also check that it was executed by the proper title holders. Note that the length of the lease must meet or exceed the length of the PPA. Ideally, we’ll have the option to terminate the site lease if the PPA is terminated.

ADDITIONAL INFORMATION
Project Questionnaire- VALTA provides a questionnaire to developers regarding applicable regulations for the project. We look to the questionnaire to better understand the specifics of the project. In particular, we want to see what local requirements might apply to your project. In the questionnaire, we ask developers to briefly list all required permits for the project.
Offtaker Credit Information- A rating issued by a credit agency OR historical financial statements. VALTA checks the offtaker’s credit rating or financial statements to determine whether the entity is investment grade credit quality. If so, we can underwrite the deal.