The recent bankruptcy of Nevada-based solar panel maker business Amonix and the infamous collapse of the manufacturer Solyndra have left many, including the nation's political class, feeling pessimistic about the future of the industry. Part of the problem relates to the high costs associated with setting up companies in the clean energy, both in terms of legal representation and due diligence research.
To combat this, Sol Systems, a green technology finance corporation, has released a streamlined documentation framework designed to speed up the process that inhibits the formation of small- and medium-sized solar-based companies. According to the organization's press release, the previous standard practice involved a lengthy review period that would cost the investor thousands of dollars to conduct. Under the new system, called SolSnapshot, a weeks-long process becomes accomplishable within a few days.
"By reducing these costs through standardization, SolSnapshot provides investors and developers with an affordable fatal flaws analysis for a given project for a few thousand dollars – instead of a hundred thousand, and in a few days – instead of a few weeks,' Yuri Horwitz, Sol Systems' CEO, said in a corporate press release.
The development may be an important catalyst in the process of shifting away from large, government-sponsored initiatives to smaller operations that, up until recently, were mostly locked out of funding markets by their competitors. With the new program in place, communication and collaboration between investors and project owners can be accomplished far more easily due to the reduction in bureaucratic hurdles.
SolMarket, the finance division of Sol Systems, will serve as the framework for the new review process. According to the source, the solar project marketplace is a digital directory for technology designers to tap into a $2.5 billion venture capital market.