Wiser Solar Asset Rating
Wiser’s unique rating system illuminates the quality of the sustainable energy investment by quantifying its risk and reward.
The Benefits of WSAR
Wiser has developed the first risk rating system for a sustainable energy asset class. Similar to a business credit score or a corporate bond rating, the Wiser Solar Asset Rating (WSAR) score provides a benchmark – a basis for comparison within the new asset class – for easily assessing commercial-scale sustainable energy project and investment risk.
Specifically, it incorporates standardized and independent solar analytics and PV industry performance metrics, project development, legal and policy risk, banking and financial industry credit standards, and hundreds of other factors that drive the likelihood that an investor will achieve his or her desired rate of return (hover over a topic below for details).
Every project has development risk associated with jurisdiction, physical location, complexity, and non-stakeholder acceptance. A careful assessment of potential issues facing commercial PV projects, such as the age of a roof, shade concerns, interconnection challenges, permitting hurdles, and community aesthetics, is incorporated into the WSAR score.
Host Facility Creditworthiness:
A careful analysis of a facility’s creditworthiness is given significant weight in determining the WSAR score. Financial statement, D&B, and BBB records are evaluated to determine the capacity and likelihood that a host facility can and will honor its commitments under the PPA.
At the heart of a project is the hardware that sits in the unrelenting sun to generate clean electricity. The WSAR score accesses the technical specification and manufacturer longevity of the hardware used in commercial projects.
Servicing & Administration:
PV systems and the PPAs that drive them are long-term assets. Therefore, the systems require reliable and efficient servicing and proficient, ongoing administration of PPA accounting, billing, and receipts. These components, which investors often overlook, are reflected in the WSAR score.
Legal & Policy:
As instruments in the heavily regulated financial and energy space, PPAs can face legal and policy challenges that change depending on the state, county, local, utility, and community regulations and standards that govern them. The WSAR score rates all potential legal and policy exposures facing a given project.
First Loss Surety:
To provide confidence in this emerging asset class, which has limited historical performance data, less risk-averse participants hold “first loss” positions to help ensure other participants achieve their anticipated returns. For their additional exposure, they may gain higher returns or other benefits. The WSAR score incorporates the percentage of a total project’s “first loss” funding.