3 FAQs about Large-scale procurement contract for off-grid solar outdoor cabinets

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.

Is a contract price a factor in the bankability of a solar project?

Price is also a consideration but is usually considered separately from the bankability of the contract because the contract price (or more accurately the capital cost of the solar facility) relates to the bankability of the project as a whole.

Do EPC contracts eliminate or mitigate risks?

EPC Contracts do not eliminate or mitigate against all risks; however, when drafted correctly they can ensure performance, timely delivery and rectification within agreed parameters or up to agreed caps. For this reason, we recommend advice on a project-by-project, contract-by-contract basis.

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