Solar Photovoltaic Power Generation Project Contract

Do solar projects need an EPC contract?

In our experience, most utility-scale solar projects use an EPC Contract. An operation and maintenance agreement: This is usually a medium- to long-term Operating and Maintenance Agreement (O&M Agreement) with an Operator. The term of the O&M Agreement will vary from project to project.

How many contracts are needed to build a solar PV plant?

ENGINEERING, PROCUREMENT, AND CONSTRUCTION (EPC) CONTRACTS While multiple contracts could be signed to build a PV plant, the most common approach is a single EPC contract. Engineering, procurement, and construction (EPC) contracts are the most common form of contract for constructing solar PV power plants.

What is a PV installation agreement?

The Installation Agreement is a lump-sum agreement between the project company, as owner of the project, and the installation contractor, the contractor that will be responsible for installing the PV system, providing the balance of plant and commissioning the plant.

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.

Can a PPA buy a solar project?

Buyer Options to Purchase the Project or Special Purpose Entity. Many utilities have shown a strong interest in owning solar energy projects. In PPAs, this interest often takes the form of an option to purchase the project or the entity that owns it on or after a specified date. Such options should be handled carefully.

What happens if a solar contractor is awarded a contract?

Upon an award, the solar contractor is bound to execute the contract and begin performance. If another contractor that supplied a proposal thinks that it had the best value proposal, the contractor can question the government’s evaluation process.