Disbursement Milestones

This article covers Wunder's policy and procedures regarding disbursement of funds during the design and construction phase of a project, the amount of  capital that is available at each milestone, how Wunder defines and substantiates milestone achievement, and the types of invoices needed to support a disbursement request.

Wunder focuses on providing long-term financing for solar assets and as such does not offer stand-alone construction financing. In addition, construction financing is not a feature of all Wunder loans. Refer to your loan documents for additional guidance.

Availability of Funds

Wunder has four defined project milestones for which a project may be eligible for disbursement. These milestones are discussed during the project diligence phase and agreed to during contracting. Each loan may be eligible for some or all of these disbursement milestones depending on the specifics of each project so it is critical to consult with your Wunder point of contact  and check either the Disbursement Schedule outlined in the “Disbursement Schedule” or “Disbursement” Section of Loan and Security Agreement (LSA) or Construction Financing Agreement to determine what disbursement milestones for which your loan will qualify. As the project progresses through the various milestones, additional loan funds become available for disbursement. Note that Wunder’s origination fee is assessed at the first disbursement unless otherwise contracted.


**See the Procurement Disbursement Section below for more detailed requirements

*Available funds at each milestone is defined by the contracted schedule less the origination fee and the aggregate value of disbursements made-to-date. Please see our Community Solar page for more information on Community Solar Disbursement Milestones.


Procurement Disbursement

Due to the relative risks associated with providing borrowers funding during the earlier project stages of procurement and construction, Wunder requires a number of additional items at this milestone.  

  1. Original invoices for all equipment must be provided in order for funds to be released (see the Invoices section below for more detail).
  2. At least 70% of total disbursed capital in the procurement milestone must be used for Eligible Equipment which is defined as solar panels, inverters, and/or battery storage as well as the associated tax and shipping costs. Non-eligible costs that can only comprise up to 30% of the disbursement can include, but are not limited to, racking, labor, or design/engineering costs.
  3. Eligible Equipment must be within 20% of fair market value and include at most a 20% mark-up from manufacturer costs.


Example Disbursements

To illustrate how these disbursement amounts are calculated, we compare two different loans side by side. Loan #1 is for $1,000,000 for a solar system being built in Iowa and Loan #2 is $2,000,000 for a system being built in Massachusetts. Both are 1 MW in size and therefore have the same procurement costs of $500,000 in solar panels and $200,000 in inverters.


Please note that regardless of the contracted disbursement schedule, funds are never available before the contracted Capital Access Date. See the Disbursement Schedule article for more information Wunder's process for releasing funds.

Milestone Definitions

The following definitions represent the construction and development items that must be completed in order for funds to be released for each respective milestone. Necessary steps for verifying completeness vary based on the project, loan size, and your history with Wunder.

Equipment Procurement

  1. Interconnection Agreements executed (off-site consumption only)
  2. Power Purchase Agreements  and/or energy service agreements executed
  3. Project Installation agreements executed
  4. Site lease executed or site control contractually demonstrated
  5. Design & engineering work substantially complete
  6. Permits applied for

Mechanical Completion

  1. All required construction permits obtained
  2. Installation of the racking system is complete, including slip sheets, ballast and any roof attachments
  3. Installation/mounting of all modules is complete
  4. Installation/mounting of inverters (micro/string) is complete
  5. Equipment pads installed (inverters/switchgear/transformers)

Substantial Completion

  1. Array wiring and grounding of modules is complete
  2. Installation of all inverters and ancillary equipment (including switchgear and transformers) is complete
  3. Installation of AC/DC conduits and/or cable tray is complete
  4. Installation of all BOS items is complete, including all combiners, junction boxes, AC/DC disconnects, and panels
  5. Installation of all AC & DC wiring is complete
  6. Installation of instruments and relays in complete and functional to the extent permissible prior to interconnection
  7. Project is ready for start-up and implementation of performance testing and commissioning procedures
  8. Installation of the SCADA or DAS system, including weather station(s) complete
  9. Project is ready for continuous operation

Permission to Operate

  1. All construction activities complete
  2. All contractor personnel, equipment, material and debris removed from the site
  3. Stamped as-built drawings provided
  4. Any undisputed liquidated damages associated with the project are paid
  5. All final project documents, reports, contracts, certificates, and manuals are delivered to the relevant parties
  6. Contractor has provided trained users on appropriate use of the project
  7. The project has successfully passed utility interconnection inspections


Each disbursement requires an invoice to substantiate the transactions for which Wunder is providing funding. While the nature of these transactions can vary, generally Wunder expects to see the following reflected on the invoices:

  • The Payee (organization being paid) should be a supplier of goods and services (e.g., engineering, procurement, construction). The Payee should not be the borrowing entity.
  • Wunder requires invoices that shows the flow of goods and services from the supplier/manufacturer to the borrowing entity. In most cases, this means two sets of invoices: (1) From the manufacturer(s) to the EPC; and (2) From the EPC to the borrowing entity. It is common for the EPC and borrowing entity to be owned by the same parent company as closely related entities. Even in these cases, Wunder will always disburse to the EPC, never the borrowing entity, unless the borrowing entity has paid for all goods and services and can provide proof of payment. Therefore, two sets of invoices are needed as described above.
  • Description of transacting parties including:
    • Payee Company Name and Address
    • Payor Company Name and Address
  • Project specific details should be listed to clearly associate the costs incurred to the solar system serving as the collateral for the loan (such as project name, size, and address)
  • Transactional details such as invoice number, invoice date, and due date.
  • Line Item Detail:
    • Procurement invoices must include a line item breakdown of goods and include manufacturer, make, quantity, per unit price, taxes, and/or shipping costs.
    • For all other milestones, invoices can include a single line describing the milestone (i.e., “Mechanical Completion”) with the allowable disbursement amount.
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