This guide provides an overview of how Palmetto LightReach funds and tranches work, why they matter, and how LightReach Partners can effectively track and report progress toward key tranche deadlines.
Understanding these processes ensures smoother project payouts, reduced financial risk, and stronger collaboration between your team and Palmetto LightReach.
What is a Tranche?
A tranche is a group of funded projects within a specific investment round. Each tranche has a set deadline by which projects must reach PTO (Permission to Operate) to remain in that funding group.
Think of it as a “funding bucket” — once it closes, new projects can’t be added, and unfinished projects may roll into future funds (if eligible).
What is a Fund?
A fund is a larger financial pool that supports multiple tranches. Each fund supports a number of solar projects, providing capital for installation, completion, and payout milestones.
Why Tranches Matter:
Tranches are how LightReach ensures capital efficiency and financial compliance with investors. For partners, they directly impact:
Project payout timelines
Ability to continue participating in LightReach funds
Partner performance metrics
When tranche deadlines are missed, project payments are delayed, and it can impact your overall partner standing and eligibility for future funds.
If a project does not receive PTO by the tranche (fund) deadline:
- The project is removed from that fund and will not receive payment in that tranche.
- It may be reviewed for re-tranching into a later fund if eligible.
- Continued delays can impact partner performance metrics.
Tracking Your Tranche Projects
How can I find which projects are tranched?
EPC's can view tranched projects directly in your External EPC Tranche Dashboard emailed, report.
Look for:
- Fund Name (e.g., Bermuda2, Bluestem Sabal)
- Fund Completion date (e.g., “11/15 PTO Deadline”)
- Awaiting PTO
What if I know a project won’t make the deadline?
Notify your Relationship Manager immediately.
Update the PTO ETA field in your dashboard (see visual example below) — this helps LightReach reallocate funding or prepare a replacement project.
A | Will LightReach always have projects in a tranche? | Not always. Tranching occurs based on fund availability and LightReach capital cycles. Some projects may await future fund inclusion. |
B | How are projects selected to be tranched? | Selection is based on project readiness (e.g., Install Approved, M1 Submitted) and historical partner performance metrics. LightReach prioritizes partners with strong PTO success rates and predictable timelines. |
C | How can Partners communicate with LightReach about projects? | Please: |
D | Clawback Duration Deadline vs Fund Deadline | Clawback Duration Definition:
Fund Completion (Tranche Deadline): - The date by which all projects within a tranche must achieve PTO to remain funded.
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Why Partners Should Care:
Even though partners don’t directly incur tranche penalties, missed deadlines can indirectly affect: - Partner eligibility for future fund participation - EPC scorecard (timeliness, predictability) - Cash flow timing on milestone payments
The better EPC's perform, the more confidence investors — and LightReach — have in Partner operations. This leads to more capacity and faster payouts
What Happens on the LightReach Side:
When tranche deadlines are missed at scale, LightReach may face:
- Penalties or reduced payouts from investors
- Delays in closing new fund commitments
- Reduced available funding for future partner projects
Operational accuracy and timeliness help LightReach protect everyone’s interests — ensuring future funds open on schedule and payments continue flowing smoothly.
In Summary
✅ Keep PTO ETAs current — it’s your best defense against fund exposure.
⚙️ Communicate early if a project is delayed or at risk.
📊 Use your dashboard tools to track progress and stay within tranche deadlines.
💬 Partner with Account Ops — LightReach is here to support our Partners success in every fund cycle.