Installer Funding Guide

Details & Timing

Timing:	Milestone funding: Twice a week Processing cut off: Mon 2:31AM - Weds 2:30 AM ET Thurs Payment Weds 2:31AM - Mon 2:30 AM ET Tues Payment Funding Date: Tuesdays/Thursdays Disbursed via ACH: Timing may vary based on bank Alternative funding days in case of bank holidays will be published in advance depending on schedule.
Documents Required:	W9 Bank Payment Authorization form These documents are submitted during initial onboarding
Clawbacks:	LightReach reserves the right to cancel files which do not achieve NTP-to-Installation (M1) after 160 days, and claw back funds for files which do not achieve Installation-to-Permission to Operate (M2) after 115 days. This is actively enforced. Any prepaid (prior to installation) commissions may be netted out against M1 or M2 payments in the event of customer cancellations. LightReach reserves the right to withhold or claw back funds to offset against egregious or intentional malpractice found with installations or sales.
Questions & Contact:	Primary Contact: Your LightReach Relationship Manager Authorized organization personnel with Accounting Admin access can submit questions to our Tier 2 support team via our chat support feature by following the prompts under 'Installer Admins: Org Settings'

Disclaimer: LightReach reserves the right to withhold or claw back funds in certain scenarios.

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	$ that an EPC is entitled to BUT that have been subtracted from their milestone payment because of a failure to achieve a milestone in a timely fashion (examples found below)
Net Funds/Offset	$ that that EPC is NOT entitled to AND that have been subtracted from their milestone payment (examples found below) Contractually in the EPC Agreement this is called an “offset”
Clawback to Net Fund	Applicable to Material that Palmetto purchases on behalf of the EPC via “Direct Pay” EPC is NOT entitled to the amount of $ that Palmetto paid for the Material as they received the equipment

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
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, Palmetto will offset $600 from the EPC at the Install (M1) funding
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

This functionality will only be available to authorized Accounting Admin's for your organization. Click here for a quick video on this new feature!

Org Level View: Accounting Admin(s) have access to view the ADMIN -> PAYOUTS tab

This tab is confidential to Accounting Admin (AA) permissions only
Only existing AA users can grant new AA permissions within your org

Org Level View: AA users can view various TABS for accounting to review.

Payments are triggered automatically via the LightReach portal
Each line is tied directly to a specific account, dollar amount, and org payment plan

Queued tab
1. Unapproved batch of transactions that need to be reviewed by Accounting. Accounting will move status from pending to approved.
2. Accounting can also remove and add transactions manually which is triggered by a payout event. The payout events (like a milestone approval) will happen regardless.
Approved tab
1. transactions that have been approved by Accounting and will be paid out on the following payment date (typically either Tuesday or Thursday)
Unbatched Transactions tab
1. Unbatched transactions are listed here if there is a payment hold on the installer org profile settings. Transactions will remain here until the payout hold is removed by Accounting.
2. Another type of transactions listed this tab are naturally occurring payout events that have not been assigned to a batch yet. The Accounting team will typically assign these transactions to a batch Monday and Wednesday so they appear under the Queued tab ready to be reviewed.
Invoice Needed tab
1. These are Direct Pay approved projects that have been installed but LightReach has not received a finalized invoice. Invoice must be received by LightReach before a payment will be processed to partner
2. As of 3/19/25 - New columns have been added to the Invoice tab . The updates here give increased visibility to both internal and external users to better target accounts they need to work with CED on so they can receive payment.
All Transactions tab
1. A comprehensive view of all transactions. New filters and a few additional columns to sort on. This tab includes all transactions that exist in the payouts system. EPCs will only see the transactions that belong to them

You can click on a transaction to view payment details:

A) Event Date - The date the project reached the milestone/payout event.

B) Payee - The org receiving the payout.

C) Account -The account name will be hyperlinked to the customer's project in the finance portal.

D) Payout Event - The milestone achieved

E) Status - Pending, approved

F) Amount - The amount to be paid out for that particular milestone.

G) Payment Plan - The amount is based on the payment plan that is active at the time the milestone was achieved.

A Payment Plan is what defines what portion of the overall project payout is released at any given milestone.
Each EPC's payment plan is set in their Channel Partner Agreement.
A Payment Plan is assigned to each Account.
EPCs will be able to see the Plan locked to any Account on that Account's funding page.

(H) Show Details button - Increased visibility into the history of a transaction

Individual Account View: AA users can view the Funding tab on a customer account

This will detail the account's payment plan, milestone triggers, and dates
Sorting is optional. Most accounts will follow our normal, linear milestone triggers

Payment Status Descriptions

Pending - project has achieved a milestone, transactions not yet reviewed by Accounting
Approved - project has achieved a milestone, transactions that have been approved by Accounting and will be paid out on the following payment date
- In the future, there will be additional statuses for sent and paid transactions sent. For the time being, "Approved" statuses will be synonymous with Paid transactions.
Historical Estimate -These transactions occurred prior to the funding automation. This transactions will be listed in the portal however the amount will be calculated as an estimate. Accounting Admins should check their historical remittance reports before escalating any questions/issues on payments paid before the automation (generally before December).

4. Open - project has achieved a milestone, project's transaction not yet assigned to a batch.

majority will simply be open because they just hit a milestone. It'll move forward soon

minority may be due to organization net negative or payment holds

5. Historical Adjustments - Manually created transactions by LR Payment Admins created to update historical estimates to match what payments were made in reality and inform future calculations.

These transactions true up the system's view of past transactions and what actually happened. This differs from “Historical Estimate” that is calculated by the system.

For Orgs Opted into CED Direct Pay: LightReach must have the finalized CED equipment invoice to issue payments.

Under most circumstances, CED will have already provided this
However, if an invoice is ever pending, CED must send this to LightReach in order for funding to occur.
In such cases, Installer should contact your CED representative to ensure the final invoice is sent. This automatically triggers clearance in the LightReach portal.

Proactively remove deals from CED at any time prior to CED shipping equipment

If EPC enrolled is in CED program at the Org level, all their accounts will still default to being enrolled with CED when accounts are created, as they are today.
But now EPCs can now self-serve:
1. Proactively remove deals from CED at any time prior to CED shipping equipment to keep their pipelines in sync across LR and CED.
2. Unblock payment on accounts held up for CED invoices that will never come because the EPC isn't using CED for that job. That blocked list is on the Payments "Invoice Needed" tab

3. If they click opt-out or opt-in, CED will be notified and the status will change on CEDs side too. If Opt-ed out, CED will bill EPC's account at CED, not LR.