Additional Risk Mitigation

In addition to standardized underwriting criteria, DayFi relies on several additional enforcement mechanims to mitigate the risk associated with each project.

Lien Structure & Contractual Rights

Power purchase agreements include a security interest or UCC fixture filing associated with the installed system. This enables DayFi to contractually enforce payment before the system (and the home it’s attached to!) can be transferred.

For example, if a delinquent customer attempts to sell their home, the customer must make the SPV whole for any delinquent payments, or they cannot sell the property. In addition, in order to sell the home, the customer must buy out the system or transfer it to the new homeowner.

Behavioral and Economic Incentives

A unique form of enforcement exists through opportunity cost. If a host becomes delinquent, the system will be remotely disabled, reverting the host to grid electricity at higher retail rates. The differential between the Daylight subscription rate and the local utility tariff represents a recurring opportunity cost that discourages nonpayment. Reconnection is contingent on clearing outstanding balances, creating a simple but effective behavioral incentive.

Portfolio Diversification

At the pool level, diversification across thousands of hosts in multiple markets further limits concentration risk. Correlations between host defaults are low because local economic, weather, and tariff factors vary. The result is a broad, amortizing portfolio with steady cash flows and limited tail risk.