Details & Timing
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Documents Required: |
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Clawback: |
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DirectPay Clawbacks: |
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Questions & Contact: |
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Disclaimer: LightReach reserves the right to withhold or claw back funds in certain scenarios.
Clawback Extension Requests:
When project timelines are anticipated to surpass the standard 115-day completion period, partners have the option to submit an extension request. These requests can be made through the installer support chat.
This process is a privilege earned not given, submitted requests must always have a valid reason accompanied by supporting documentation. Palmetto LightReach will evaluate each extension requests against any clawback extensions already granted and reserves the right to deny an extension request.
Please allow 1 week from submission to confirm if an extension request is granted or denied. Transactions approved for extension requests will be marked as "Paused." This "Paused" status serves to postpone the clawback process, meaning we will not charge the partner back on the transaction in the event the extension is granted.
Clawback Extension Reasons and Timeline:
Reason | Timeline |
Transformer Upgrade | 30 Day Extension |
Main Panel Upgrade | 30 Day Extension |
Utility / AHJ delays outside of EPC control | 14 Day Extension |
PTO is approved and uploaded, Service delay correction M2 deliverables | 14 Day Extension |
Customer Escalation | 14 Day Extension |
CA/CO Market 30 day Extension (145 day Duration) | 30 Day Extension |
Other - Installer to Provide Reasoning within Submission | Determined Based on Circumstances |
Total Extension Exposure:
Under no circumstance will Palmetto allow for more than [10% of Post Install not Activated Backlog OR $500k EXTENDED] at any given point
Email or Proof of delay must be uploaded in the account document section of the Palmetto Finco Portal (Supporting Document).
How to Submit an Clawback Extension Request:
Chat Selection Path: Installer: Org Settings >>> Org Funding Details >>> Clawback Extension Request.
Requests should include the following information:
Account Finco ID
Account Primary Name
ETA of PTO
Extension Request Deadline (Date)
Install Submission Date
Drop-Down Reason for Extension
Clawback and Net-Fund Dashboard
Background
LightReach uses two different mechanisms to manage how long working capital ($ paid to EPCs) is deployed before we require it to be returned.
These mechanisms are aimed at driving increased accountability and alignment with EPC partners to achieve milestones in a timely manner.
This report collects any projects in an EPC’s pipeline with a risk of clawbacks and/or net-funding. Each row is sorted by milestone and its aging status. Integers in red require immediate action and filter aging projects that are at imminent risk of a clawback.
Note: This report can only be viewed in the finance portal for users with Accounting Admin access.
Key Definitions
Clawbacks |
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Net Funds/Offset |
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Clawback to Net Fund |
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Example Funding Scenarios (Click to Expand)
Example Funding Scenarios (Click to Expand)
Type of Milestone Reduction | Reduction | Definition |
Clawback | M1 Funding Clawback | Contractually, once a project has been paid the Install (M1) funding milestone it has a 115 day “shot clock” to reach Activation Approved. Note: We do not have a “payment date” in the LR system so the backend logic will net fund based on the Install M1 milestone date (Install Submitted or Install Approved). Because of this the net fund “shot clock” logic will have a 5 day buffer and be driven off of 120 days. |
Clawback to Net Fund | Compliance Case *If the project has an active administrative stip or compliance case, please have the EPC upload requested supporting documents to Ops Specialists via live chat support or via the finance portal. | LightReach reserves the right to claw back funds to offset against egregious or intentional malpractice found with installations or sales |
Clawback to Net Fund | CED Materials - Install Submitted (Direct Pay) | An EPC has 14 days from Equipment Ship Date to submit the Install Milestone. If they fail to achieve this submittal in time the CED equipment invoice amount will be offset from other project milestone amounts owed. The 14 day timeline resets if an invoice is received after a shipment confirmation. |
Clawback to Net Fund | CED Materials - Install Approved (Direct Pay) | An EPC has 30 days from Install Submitted to achieve Install Approved, if they fail to achieve this in time the CED equipment invoice will be offset from other project milestone amounts owed |
Net Fund/Offset | Inverter Tesla Warranty | If a project is sold with a Tesla Inverter 1538000-45-x and |
Net Fund/Offset | SolarEdge Inverter Extended Warranty | If a project is sold with a SE Inverter, Palmetto will offset the cost from the EPC at the Install (M1) funding. The cost depends on the inverter model. |
Net Fund/Offset | Project Cancellation | If a project cancels after a milestone payment has been made to an EPC partner or a payment has been made to a material vendor, that amount will be offset from a future payment milestone |
How it Works in the Portal
This functionality will only be available to authorized Accounting Admin's for your organization. Below is a complete guide to the Payouts tab that showcases each piece of information relative to project funding within your org. Click here for a quick video on this feature.
Click here for the guide
Click here for the guide
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Exporting Account Data
This feature is only available to users with Accounting Admin access.
Accounting admins may opt to export a whole pipeline or specific pipeline of projects through various filters including aging status, market, salesperson, etc.
Exporting will behave differently depending on the volume in the report. Smaller reports will be available for immediate download, while large requests will generate an email to notify the user that their report is ready for download.
Direct Pay
Direct pay is designed to reduce cash flow burden on installers. Participation in the program is optional. The program allows Installers to order equipment on a per-job basis, with LightReach paying for the equipment directly. Equipment costs are netted from EPC payments, reducing cash flow burden on Installers.
Installers can opt into Direct Pay on a whole pipeline basis. This means that all future LightReach jobs will be under Direct Pay.
For Orgs Opted into Direct Pay: LightReach must have the finalized equipment invoice from the vendor to issue payments.
Proactively removing deals from Direct Pay at any time prior to the vendor shipping equipment:
3. When users click opt-out or opt-in, the Direct Pay vendor will be notified and the status will change on vendor's side. If Opt-ed out, the vendor will bill the EPC's account externally, and not to LightReach.
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