The Wattency Standard: Project Vetting & Data Room Requirements

Why a data room standard matters

In India's C&I solar market, the quality of project documentation varies enormously. Many transactions stall or fail — not because the project is unviable — but because the developer cannot produce the basic evidence an informed buyer or investor needs to say yes. Wattency's data room standard defines the floor: the minimum documented evidence that establishes a project as credible and investable.

We model this standard on the documentation typically required by lenders funding commercial solar projects: project finance banks, NBFCs with renewable energy books, and domestic bond market participants. A project that meets the Wattency Standard is, in essence, structured for bankability — not just for informal syndication.

1. PPA or offtake verification

Required evidence: An executed or term-sheet-stage Power Purchase Agreement (PPA) or Wheeling & Banking Agreement with the identified power buyer, or a credible Letter of Intent (LoI) for captive/Group Captive projects.

We verify PPA terms across:

• Contracted tariff: Nominal ₹/kWh rate, escalation clause (fixed, CPI-linked, or zero-escalation), and term (typically 15–25 years for C&I)
• Offtaker creditworthiness: For private buyers, articles of association, GST filings, and most recent audited accounts are reviewed. For DISCOM buyers, the applicable DISCOM's payment track record is noted
• PPA enforcement structure: Jurisdiction, termination rights, change-in-law provisions, and applicable regulatory override clauses (particularly relevant for open access projects where state tariff orders may affect CSS or banking entitlements)
• Deemed generation provisions: Whether and how shortfall in buyer consumption is handled — critical for investor yield calculation accuracy

Projects with no identified offtaker at the LOI stage can be listed but are displayed with a clear "offtake not secured" disclosure. Investors are filtered accordingly.

2. Grid connectivity feasibility

Grid connectivity is frequently the most material execution risk in Indian solar projects. Projects that receive financial commitment before grid feasibility is confirmed routinely face 12–36 month delays. Wattency therefore requires documented feasibility evidence before a project advances to the "funded" stage.

Accepted forms of grid connectivity evidence:

• DISCOM / STU feasibility letter: A formal communication from the relevant DISCOM or State Transmission Utility confirming that the requested injection point can accommodate the project capacity, with indicative substation details and approximate evacuation route
• ISTS connectivity application acknowledgement: For projects using inter-state transmission, an LTOA application receipt from the regional RLDC or CTU confirming the application is under review
• Feasibility study by empanelled consultant: For projects where a formal DISCOM approval is still in process, a connectivity feasibility study from a qualified electrical engineer or CPRI-empanelled firm is accepted, with disclosure that formal approval remains pending
• For rooftop projects: Confirmation from the building owner, DISCOM net metering application acknowledgement, and switchyard / synchronisation panel specification from the EPC

Projects where grid feasibility is entirely unassessed are not listed beyond the exploration stage regardless of other document quality.

3. Lenders' Independent Engineer (LIE) report

An Independent Engineer (IE) report — referred to as a Lenders' Independent Engineer report when procured in the context of debt financing — provides a third-party technical assessment of the project by an organisation with no commercial relationship with the developer or EPC contractor.

When an LIE report is required:

• Projects seeking equity investment above ₹2 crore: full IE report required at the diligence stage
• Projects in the ₹50 lakh–₹2 crore range: abbreviated technical review (site visit, P90 generation report, equipment spec review) from a qualified solar professional accepted as an equivalent
• Small rooftop projects below ₹50 lakh: developer-provided technical specification reviewed against our internal benchmarks; full IE report not mandated but welcomed

Standard LIE report scope expected by Wattency:

Wattency maintains a list of pre-qualified IE firms used by lenders active in the Indian solar market. Developers are free to engage any technically qualified firm; Wattency reviews the scope and independence of the report rather than mandating a specific firm.

4. Financial modelling

All projects listed on the Wattency marketplace display a standardised financial summary. The underlying model must demonstrate internal consistency across the following parameters:

• Installed capacity and CUF: Generation (kWh) = Capacity (kW) × CUF × 8,760 hours/year. CUF must align with the P50 generation estimate from the IE/energy yield report, net of transformer losses and module degradation
• Revenue build-up: Annual revenue = Generation × effective contracted tariff, adjusted for banking charges, balancing/DSM settlement, and deemed generation provisions. For projects with multiple offtakers or a hybrid tariff structure, each stream is modelled separately
• CAPEX structure: Itemised capital cost with EPC breakdowns (module, inverter, BOS, civil, EPC margin, IDC, contingency). CAPEX must be within ±20% of current market benchmark for the project type and state; outliers require explanation
• OPEX and O&M escalation: Annual O&M costs, land lease (where applicable), insurance premium, module cleaning, and management fee, with a stated inflation escalation assumption
• Debt service (where applicable): Loan drawdown schedule, interest rate assumption (benchmarked against prevailing MCLR + spread or repo rate + spread), DSCR for each year of the loan term — minimum DSCR of 1.15 expected for listing as "debt-structured"
• Equity returns: IRR to equity investor stated at P50 and P90 generation scenarios; payback period; NPV at an investor-stated discount rate
• Sensitivity table: IRR impact from ±10% tariff, ±10% generation, and +200 bps on capital cost — must be present for any project where equity investment exceeds ₹1 crore

Wattency's review team cross-checks model outputs for internal consistency and flags any assumption that is materially outside market range. The model is not audited — investors are expressly encouraged to run their own models — but the Wattency-reviewed model provides a documented starting point for diligence.

5. The data room document checklist

What the Wattency Standard does not replace