Underwriting 4 - NTP Rejections
HDM - NTP Rejections and Questions
Production Out of Range Rejection
Underwriting will look at the proposed system and the site and estimate annual production in kWh’s. They factor in the system size, array orientation and possible shade hazards.
When the salesperson signs the customer and creates a PPA document for the customer to sign, they enter in a production number based mostly on the system size.
If the HDM team estimates annual production lower than what the PPA document states, then the job will be rejected. In this case the customer has to sign a new PPA agreement with an acceptable production estimate.
To prevent this, salespeople are encouraged to enter a conservative version of the production estimate from their proposal tool.
Plans, System Size and Docs Rejection
When the system described in the 2D drawings is different than the system described in the PPA agreement the NTP submission will be rejected.
If the PPA lists a 10kW system, the plans need to list a 10kW system. Inconsistencies will slow the project down.
Plans that only include the cover page and not the complete CAD file are rejected. Always include the entire CAD package.
Also jobs with no utility bill and NEM loaded will be rejected.
Title Rejection
Title rejections are the most common. The title check requires that the person who signs the PPA agreement is on the title.
Sometimes the HDM underwriters are using databases that are out of date. If you have your own property check documentation, you can submit that to remedy this rejection.
Additionally, any other document like a deed or tax documents may be used as a substitute to this requirement and help move your project out of the NTP stage.
AVL’s Rejection
HDM has approved vendor lists (AVL’s) for modules, inverters, and storage. If your system design contains any equipment that is not listed on the AVL then the NTP will be rejected.
There is a process for adding additional manufacturers to the list.
Requirements for requests include the following:
A spec sheet of the equipment
Monthly sales volume that will be made possible by adding the manufacturer
You’ll work on the AVL request with your account manager who will communicate the addition or rejection of new equipment.
The latest version of the AVL can be found here.
Authorized Rep Rejection
This rejection only comes up on commercial deals or homes owned by commercial entities.
If HDM discovers that the company representative was not authorized to sign the PPA agreement on the behalf of the company, the NTP submission will be rejected.
Representation is granted by a letter of authorization which is signed by the acting manager or director that demonstrates that the signing agent of the Prepaid PPA is authorized by a commercial entity to sign on its behalf.
Substitute docs that can serve the same purpose include:
Articles of incorporation
Company organization chart
Find and Fix Rejections
From the NTP Stage list:
When a rejection Requires a Resign
Certain rejections require re-signing a new PPA (Change Order).
If the signed PPA doesn’t match the
planned system described in the NTP docs, a new PPA must be signed that does
match.
- Change to the Turn-Key Amount
- Change to the Solar System Size
- Estimated Production: Out of Range. When the estimated production listed in the PPA is higher than HDM’s estimate
- Change to the Battery System Size
Additional reasons for a re-sign include:
- Customer Name incorrectly entered on agreement
- Customer Address incorrectly entered on agreement
The HDM Underwriting team will
inform you of the rejection and the need for a Change Order which will create a new agreement
and delete the old project.
Simply creating an additional quote is no longer an option. Only one quote is allowed per customer and the change order process takes care of that requirement.
When a change order is needed, it will require some coordination between Sales and Project Management because this takes place on the project detail page
Corrections requiring a Change Order include:
- Customer name or address typo
- Turn-Key Amount
- Solar System Size
- Year 1 Production
- Battery System Size
- Click Change Order from the Project Detail page
- Select a Change Order Criteria from the drop down and Submit
- You land in the quoter tool for the new quote
- Complete the missing fields.
- Submit the change order. This will close the old job and create the new one
- Send your new docs
- After signing, underwriting starts on a new project/NTP page
The FAQ and Affidavits Lesson
The FAQ and Affidavits lesson describes the guidelines around exceptional projects.
Related Articles
Underwriting 3 - NTP Basics
HDM NTP Basics View this video or read the article below: This covers the NTP stage, during which a Statement of Work will be generated by HDM. For information on rejections and other problems, please see the ‘NTP Rejections’ lesson. Notice to ...Underwriting 5 - M1 (Milestone 1)
HDM M1 – Substantial Completion View the video or read the article below: In this stage, the installer shows substantial completion of the solar project. Required Docs The following docs need to be uploaded to the HDM Underwriting Portal COR: ...Underwriting 1 - Overview
HDM Operations Overview View this video or read the lesson below: What HDM Offers HDM offers a Prepaid PPA. These are the results of the agreement: Before HDM will fund their portion, the project must go through the underwriting process described ...Underwriting 9 - FAQ Affidavits
HDM Underwriting - FAQ and Affidavits View the video or read the article below: Topics Covered: No Building Permit Required No PTO Required Add-On/Expansion New Construction Large Storage Off-Grid Guidelines AHJ Says: No Building Permit Required To ...Underwriting 7 - M2 (Milestone 2)
HDM - M2 (Milestone 2) View the video or read the article below M2 is HDM’s pre-performance review. M2 Steps and Requirements What Happens During M2? HDM fleet team: Reviews existing production data on the monitoring platform Extrapolates future ...