Milestone Disbursements

This article will cover Wunder's policy and procedures regarding disbursement of funds during the construction phase of a loan including who is eligible to receive this benefit, how much capital is available at each milestone, and how Wunder defines and verifies milestone achievement.

Note: Wunder does not offer stand-alone construction financing and can only offer milestone disbursement schedules to select partners working on projects for which Wunder will be providing long-term project financing. 

Partner Eligibility

The primary factors that determine whether a contractor will be eligible for Milestone Disbursements are their experience building solar (MW built + years in business) and their history working with Wunder.

In order to substantiate a partner's experience, Wunder will often require one or more of the following: inspection of a previously built system, collection and analysis of output from past completed systems, reference letters, independent engineering reviews, and more. In addition, Wunder may also review all subcontractors completing work on the project. 

 

Availability of Funds

Wunder has defined four project milestones for which a project may be eligible. The Disbursement Schedule will be discussed during the project diligence phase and agreed to during contracting. Availability of funds is based on the following schedule:

Milestone Available Funds
Equipment Procurement Up to 90%*
Mechanical Completion 70%
Substantial Completion 90%
Permission to Operate 100%

*Original invoices for all equipment must be provided in order for funds to be released. At least 70% of total disbursed capital in this stage must be used for the purchase of panels and/or inverters.

Please note that regardless of the contracted disbursement schedule, funds are never available before the contracted Capital Access Date. See the Capital Disbursement 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 that 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. PPA and installation agreements executed
  3. Site lease executed or site control demonstrated
  4. Permits applied for
  5. Design & engineering work completed

Mechanical Completion

  1. All required 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 + panels
  5. Installation of all AC & DC wiring is complete
  6. Installation of all BOS items is complete, including all combiners, junction boxes, AC/DC disconnects + panels
  7. Installation of AC & DC wiring is complete
  8. Instruments and relays have been installed and are functional to the extent permissible prior to interconnection
  9. The system is fit for start-up, implementation of Performance Testing, & Commissioning procedures
  10. Successful completion of Performance Testing & Commissioning procedures
  11. All metering devices have been installed, tested, calibrated
  12. Installation of the SCADA or DAS system, including weather station(s) is complete

Permission to Operate

  1. Except for the Punch-List, all work has been properly provided, installed, and tested
  2. The plant is ready for continuous operation
  3. Contractor has satisfied all requirements for obtaining Applicable Permits/Approvals necessary for operation
  4. The final Punch-List for the work has been prepared and delivered
  5. All work complete, including all items on Punch-List
  6. All contractor personnel, equipment, material and debris have been removed from the site
  7. Stamped As-Built Drawings have been delivered
  8. Assignments of warranties have been delivered
  9. All final releases and waivers have been delivered
  10. Any undisputed Liquidated Damages have been paid
  11. All final project documents, reports, contracts, certificates, and manuals have been delivered
  12. Contractor has provided any necessary training
  13. Contractor has issued and delivered a Notice of Final Completion
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