The process of financing utility-scale renewable energy projects can be complex, time-consuming, and costly. To help you with that, here are four effective tips that will make the financing process smoother and more cost-effective:
Check the Datasite
A well-organized datasite is crucial for due diligence during project financing. Have your legal counsel review the datasite and provide guidance on what needs to be added or removed. Avoid using vague labels like “miscellaneous” or “other” and ensure that folders are clearly labeled.
This helps save time for all parties involved and gives a favorable impression to investors.
Collaborate with an Experienced Surveyor
Hire a surveyor who has expertise in renewable energy projects. Inexperienced surveyors can lead to delays, refusals to include necessary certifications, and additional back-and-forth communication.
By working with an experienced surveyor, you can ensure that the required surveys are accurate and complete.
Work with a Reputable Company
Select a well-known company that has plenty of experience in renewable energy projects. Knowledgeable title companies can provide appropriate coverages, commit to future coverages, and provide efficient work.
Moreover, a proficient title company can handle the volume of comments and documents that arise during the financing process.
Address Third-Party Deliverables in Advance
Prepare for third-party deliverables, such as subordinations and lien waivers, ahead of time. Make sure original construction contracts incorporate correct forms for lien waivers and subordination obligations.
Educate your construction team about local requirements for bonds and forms. Aside from that, assign a paralegal to manage communication and document coordination with contractors and subcontractors to ensure the timely delivery of required documents.
By following these tips, you can streamline the financing process, reduce costs, and make the overall experience less stressful for all parties involved.