Our underwriting process includes extensive due diligence of loan customers to mitigate default risk. However, in the event that a borrower misses a payment, or experiences an incurable default, it's important to understand what actions Wunder takes to remedy the situation and work to recover value.
Typically we find an incurable default arises because the borrower has filed for bankruptcy. Each Wunder solar loan is secured by the assets of the underlying solar system as well as the future energy revenues that the system is expected to generate. As such, in the event of an incurable default, the Fund will essentially seize ownership of the solar system in-situ (typically on the property's rooftop), and then work to recover value by monetizing the asset. This is usually done by executing a Power Purchase Agreement with the new tenant of the property. Naturally, we will use other means to best monetize these systems (including net metering) where available.