What this is A guide to understanding and interpreting project screening results as an investor.
Who this is for Investors and financiers reviewing submitted projects through SolarQuant.
What you can do - Understand the key metrics displayed - Interpret pass/fail indicators - Identify which rules triggered warnings or failures - Compare projects efficiently
Key metrics explained
Project IRR (Internal Rate of Return) The unleveraged return on total capital invested. - Green (Pass): Meets or exceeds your target threshold - Yellow (Warning): Close to threshold, may warrant closer look - Red (Fail): Below your minimum requirement
Equity IRR The return on equity capital after debt service. - Higher than Project IRR when leverage is positive - Critical metric for determining investor returns
Payback Period Time to recover initial investment from project cash flows. - Shorter is generally better - Compare against your maximum acceptable payback
DSCR (Debt Service Coverage Ratio) Cash available for debt payments vs. required debt service. - Minimum 1.2x typically required by lenders - Higher ratios indicate better debt capacity
Understanding the screening summary
Rules passed Green checkmarks indicate your screening rules were satisfied: - Country is acceptable - System size is within range - IRR exceeds minimum - Payback is within limit
Rules failed Red X marks show which criteria were not met: - Each failure shows the rule name and actual vs. required value - A single "deal-breaker" failure typically rejects the project
Warnings Yellow indicators for items requiring attention: - Soft thresholds nearly breached - Data quality concerns - Unusual input values
Next steps after screening
If passed - Review the detailed assumptions - Request additional documentation if needed - Proceed to deeper due diligence
If failed - Note which specific rules caused failure - Decide if rules need adjustment - Or reject and move to next opportunity
Rules and limits - Screening is indicative, not a final investment decision - Results depend on submitted data accuracy - Your rules can be customized in workspace settings
Common mistakes - Treating screening as final due diligence - Ignoring warning indicators - Not reviewing the assumptions behind calculations
Related articles - Configuring Investor Screening Rules - Why Outputs Can Change - How SolarQuant Calculates Outputs
--- Note: Screening results are indicative only. Always conduct independent due diligence before making investment decisions.