Key Areas of Due Diligence for Solar PV Project Financing

Financing plays a key role in the successful implementation of solar PV projects. To obtain financing solar PV projects are subject to a thorough due diligence process typically conducted by an independent engineering firm in support of the financiers. In the past five years Sargent & Lundy has...

Full description

Saved in:
Bibliographic Details
Published in2023 IEEE 50th Photovoltaic Specialists Conference (PVSC) p. 1
Main Authors DeCristofaro, Eric R., Thibodeau, Matthew R., Okoli, Fitzgerald C., Silhavy, Jake T., Giacchino, Evan S., Loeding, Adam W., Coologeorgen, Alexander E.
Format Conference Proceeding
LanguageEnglish
Published IEEE 11.06.2023
Subjects
Photovoltaic systems
Power transformers
Probabilistic logic
Procurement
Production
Renewable energy sources
Warranties
Online AccessGet full text
DOI10.1109/PVSC48320.2023.10359635

Cover

More Information
Summary:Financing plays a key role in the successful implementation of solar PV projects. To obtain financing solar PV projects are subject to a thorough due diligence process typically conducted by an independent engineering firm in support of the financiers. In the past five years Sargent & Lundy has provided independent engineering services for the renewable industry in support of financing for over 300 renewable power projects. This includes support for the financing of dozens of solar PV projects for major tax equity investors and debt lenders. Sargent & Lundy has developed a presentation that touches on key areas of due diligence that solar PV project financiers are most interested in as well as key recommendations and lessons learned from our experience supporting the financing process as an independent engineer. The presentation covers the topics outlined below: 1. Review of Project Parties 2. Site Suitability Assessment 3. Key Technology Review (PV Module, Power Conversion System, Main Power Transformer, Mounting System) a. Manufacturer Overview b. Manufacturing Quality System Review c. Product Review / Installation Statistics d. Site Suitability Considerations e. Warranty Review 4. System Design Review a. PV Array Design b. Electrical Design c. Civil Review i. Geotechnical Conditions ii. Hydrology and Flood Risk d. Structural Design 5. Energy Production a. Solar Resource Assessment i. Analysis of Available Solar Resource Data ii. Data Correlation (Measure-Correlate-Predict) b. Independent Energy Yield Assessment using PVsyst c. Probabilistic Analysis 6. Environmental and Permitting Review 7. Contracts and Agreements Review a. Engineering, Procurement, and Construction Contract b. Supply Agreements c. Power Purchase Agreements d. Interconnection Agreement e. O&M Agreement 8. Financial Model Review a. Revenue, Capacity and General Technical Inputs b. Energy Output and Revenue Projections c. Project Operating Cost d. Useful Life
DOI:10.1109/PVSC48320.2023.10359635