What Does COD Mean In Solar?
SolRiver Investment Milestone at COD
COD, or “Commercial Operation Date”, is the day that the system becomes fully operational and can begin selling power under the terms of the PPA. Typically, SolRiver releases any remaining funding amount when the project meets the COD milestone. This is sometimes known as “COD Finance”.
What is COD Finance?
COD finance is a term for the funding that occurs when a project reaches COD. It is the final capitalization of a project and may also be referred to as “takeout finance”. It funds any remaining construction costs, developer fees, and pays off construction loans. COD financing can combine several capital sources, including term debt, tax equity, and sponsor equity.
Conditions to Reaching COD
At SolRiver, there are a handful of conditions to meeting COD and we strive to make them as transparent as possible from the start.
Our COD Conditions include:
1 Final Completion Reached
The system is mechanically, electrically, and structurally compliant with the EPC agreement.
- The system is commissioned according to the proposed system design.
- All permits necessary to construct and operate the system have been obtained.
- The system passes building inspection by the relevant jurisdiction
2 Final Interconnection Approved
The local utility approved the system to interconnect with the grid and has issued permission to operate.
3 PPA Satisfied
All conditions for selling power under the PPA have been satisfied.
4 Independent Engineering Review
A third-party independent engineer confirms that the as-built project specs are consistent with the proposed system specs.
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Learn More About Funding Your Project With SolRiver
We provide flexible funding options for pre-NTP projects.
For projects at NTP, we offer the capital needed to start construction.
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SolRiver Capital provides a guided diligence checklist to secure funding.
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