Will EPC contracts provide for the handover of a solar facility?

EPC Contracts will not provide for the handover of the solar facility to the Project Company, and the PPA will not become effective until all commissioning and reliability trialling has been successfully completed.

Should you choose an EPC contract for a solar project?

Given the significant monetary value of EPC Contracts, and the potential adverse consequences if problems occur during construction, the lowest price should not be the only factor used when selecting a Contractor. As noted earlier, an EPC Contract is one of a suite of agreements necessary to develop a solar project.

What happens if the EPC contract is uncertain?

Any uncertainty in the EPC Contract may unfortunately see the Contractor liaising directly with these third parties and possibly risking the relationship of the Project Company with key influencers, customers and long-term neighbours.

Why should a project company invest in a solar facility?

• Performance guarantees: The Project Company’s revenue will be earned through the operation of the solar facility. Therefore, it is vital that the solar facility performs as required in terms of output, efficiency and reliability.

What is a solar farm performance guarantee?

3.1 The Contractor warrants that the Solar Farm and all component parts will meet the Performance Guarantees. 3.2 The Contractor must undertake the Performance Tests in accordance with clauses 1 and 2 to establish that the whole of the Works, Solar Farm and all component parts achieve the Performance Guarantees.