Why do lenders ask a solar installer about its pipeline of signed but uninstalled jobs?

A lender reads a backlog the way a farmer reads a barn: how full it is, and whether the contents will keep. For a solar installer, a backlog of signed work suggests revenue ahead, but only if the jobs are firm. Be ready to show each contract, its date, the deposit received and any conditions still open, such as permit approval, a roof inspection or customer financing that has not cleared.

Timing matters as much as size. Panels and inverters are often bought before the crew arrives, so a long backlog can mean cash is parked in stock or owed to suppliers. Expect questions about how the installer is paid, whether by deposit, milestone or completion, and how many jobs have slipped before.

Also expect a question about cancellations. Show how many signed jobs historically fell away and why. If you are the buyer, ask for the same schedule before you finalize anything, and ask your accountant how it ties to the statements. Lenders also notice how the pipeline is managed. A tidy tracking sheet, updated weekly, tells them the owner knows where each job stands, which counts for as much as the size of the list itself.

Key takeaways

• Prepare a schedule of signed jobs with deposits, conditions and expected install dates.
• Show how past cancellations and delays played out.
• Explain how supplier payments line up with customer payments.