The EPC entrepreneur is known for some, but not all, projects in Wiki-Solar`s database. As mentioned below the table, some figures are therefore underestimated. However, some of the main participants confirm the details of their portfolio to Wiki-Solar (and you can also – see at the bottom left of this page). A solar company that provides the engineering, procurement and construction of a complete solar system. An EPC company offers a full service experience to purchase a solar system seamlessly and receive ongoing support in system maintenance. Project development is a business activity that is inevitably associated with risk, time, and financial and political resources. The project developer usually initiates new solar energy projects and retains ownership of them, at least in the early stages of development. Project development activities typically include site selection, negotiations with the landowner, applying for a permit and connecting to the grid, and fundraising. The project developer often organizes the engineering, procurement and construction (EPC) contractor either by internal capacity or by hiring a company specializing in EPC. The EPC is responsible for the engineering and design, purchase of photovoltaic systems and other balanced equipment and materials, as well as the construction and commissioning of generating plants. The project developer usually also identifies a suitable pantograph. According to NREL estimates, project development and EPC account for four to five percent of the total project cost, the proportion may vary depending on the size of the project and the type of assembly (see Figure DI.1).
Since a large, financially stable EPC contractor manages the design, purchases the components, and installs, orders, and hands over the system to the owner, the EPC accepts and manages the procurement and performance risks of the project. Transmission and interconnection: Utility solar projects typically sell the electricity they produce to wholesale utility buyers. Interconnection agreements are usually pre-approved by the State Utilities Commission and are generally non-negotiable. The developer shall bear the costs necessary for the public service to accept interconnection and for all installations and upgrades necessary to ensure the stability of the network. Sometimes upgrades may not be possible or not feasible at all. The already existing availability of overcapacity in the surrounding area is the norm. If transfer upgrades are scheduled, the project developer can also try to plan the project schedule with the transfer upgrade schedule. This is the last step in the process, and the activity includes assembling the solar panels, accessories and installing the grid connection as well as solar implementation in accordance with your existing power supply system. Once installed, the solar EPC company offers after-sales services such as the maintenance of your system through the monitoring and maintenance of the devices.
An important consideration when purchasing land for a large-scale photovoltaic project is land use efficiency, measured in watts per square meter (Wm−2). Solar power plants on private land tend to have significantly higher land use efficiency (35.8 Wm−2) than plants on public land (25.4 Wm−2). Producing a significant amount of electricity from solar panels in the utility area requires a lot of space. Hernandez et al. (2015) estimate that with a land use efficiency of 35 Wm−2 at a capacity factor of 0.20, a single terawatt of utility-scale solar project capacity would require 142,857 km2 of land, roughly equivalent to the area of New York City. Today`s solar energy technologies and environmental practices in the utility sector ensure that the impact on the ground is minimized when these facilities are built. For example, according to the EPA`s “Re-powering America`s Lands” program, currently and formerly contaminated land, landfills, and mining sites are particularly encouraged to reuse them for renewable energy development. Big solar development is a big business, and solar EPC contracts are big business. In the second quarter of 2017, the U.S. solar energy market installed 2,387 MWcc, an 8% year-over-year increase and the second largest quarter ever. PV utilities accounted for 58% of these installations, making it the seventh consecutive quarter in which utility space added more than 1 GWdcii. In today`s solar market, there is significant competition between project developers looking for third-party loans and capital investment partners.
This means that to gain a competitive advantage, developers must prepare a solar project with the highest guaranteed revenues in order to increase the likelihood that the project will be sold to such potential debt and equity companies. Since the majority of a solar project`s capital expenditure is EPC costs (about 70% to 90%) iii, the cornerstone of any bankable solar project is a properly negotiated EPC contract. Therefore, developers need to offer lenders and investment partners bankable EPC contracts that centralize the responsibility of addressing many of the perceived challenges associated with a large solar project and make the risk profile of the entire solar project more attractive to those potential partners. This article identifies the five fundamental risks that every project developer faces in an EPC contract and presents an easy-to-use checklist of legal and business tools to mitigate them and ensure that the developer is able to present lenders and equity investors with the most bankable EPC contract – the one that is most likely to deliver a solar project that performs well on time and in budget limits. This whole “Getting Smart” concept is what Sunrun worked on in the show. From a structural point of view, EPC (Engineering, Procurement and Construction) contracts are the most commonly used form of contract for complex projects like this. These types of agreements are arguably more complex than standard construction contracts. Therefore, this article gives a brief overview of EPC contracts and identifies key areas to consider as you approach your next solar project. Figure DI.3 and Figure DI.4 illustrate examples of project schedules for solar project developers and EPCs. While fulfilling the role of prime contractor, many CFEs will in turn appoint subcontractors to perform much of the construction work; generally divided between mechanical and electrical activities.
EPC contracts are agreements that provide for the engineering, procurement and construction of a project. They have become an industry standard agreement for the construction of P&E facilities. Essentially, such agreements provide companies in the energy and energy sector with a single point of responsibility – the EPC contractor – who manages all aspects of the project. They also define the relationship between the P&E company and the EPC contractor and state important details such as timelines, responsibility, and corrective actions. Any company that has completed a large construction project knows how long it can take. Hundreds of decisions have to be made throughout the process, from deciding which materials to use and with which suppliers to contract, to making technical decisions about design and engineering specifications. For many, the project would be better served by creating a framework that transfers responsibilities for design, engineering, construction – and membership – to a single qualified entity. Commercially, it is imperative to check the final finished system before declaring the completion essential to ensure that everything is squared before the EPC contractor can leave the site. .