It is very important that the developer goes through the solar EPC contract in detail, even if takes a toll on your time. The following pointers should be taken note of before signing a contract with the EPC.
- Validate all details of the components they supply
- Ensure that poor grade panels with visible cracks and bends are not provided
- Ensure that the brand of the panels is same as what is initially specified
- Ensure local service support is available for inverters
- Go for good quality inverters that are known to perform well in your region
- Review generation projections and ask EPCs for the methods for arriving at the same
- Ensure that they have not computed savings based on exaggerated generation estimates
- Ask for real life case studies of generation in your area
- Check and understand the minimum warranty period of components
- Read the warranty terms in detail at least for key components
- Review component manufacturers’ reputation and client list
- Avoid panels without performance warranty up to 25 years and inverters up to 5 years
- Assess benefits of extended warranties, especially for inverters
- Check with EPC on aspects which will not be covered by warranties and discuss mitigation methods
- Proper coverage of performance guarantees
- Ensure the EPC does not just promise high generation, but also covers it in the contract
- Negotiate for a minimum of 80% as Performance Guarantee
- Penalty Clauses for failures to meet guarantees should be mentioned in EPC contract
- Also make sure your EPC commits to timelines on paper and includes penalties for non-compliance
You might want to check out these questions too on EPCs – Contract Terms and Value Adds
- What kind of guarantees is provided by a good EPC? – Here
- Can you avail a free quote from an EPC before you decide on them? – Here
- How important is the solar EPCs’ transparency in transactions? – Here
- How will the level of sub-contracting done by a solar EPC affect the power plant installation? – Here
- What difference can a solar EPC’s skill in engineering design bring to the power plant? – Here
- What kind of team profile should you look for in a solar EPC? – Here
- What are the usual timelines provided by good EPCs for project completion? – Here
- How much do EPCs charge for their services? – Here
- What value addition can solar EPCs with good industry partnerships provide? – Here
- What are the certifications you need to look for in an EPC? – Here
- What are the critical value-adds to expect from high-quality solar EPCs? – Here
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