Almost every investor need to hire an EPC (Engineering, procurement and construction) contractor to setup solar plant or I would like to say Solar Money Plant. How much this money plant will deliver to you is very much depended on EPC contractor. So, investor should act like good gardener and learn the importance of good EPC contractor.
I have personally seen that in 2009-2011 years, many investor in India adopted only one criteria for the selection of EPC contractor. Yes, you are right, it was Money. At present many of those are not happy with their plant and for some of them, conditions are so bad that when they want to sell their solar plant to get rid of it, they didn’t find any buyer.
I also want to congratulate to all those have taken a lesson from others mistake and change their selection criteria of EPC. This article is to further enlighten the importance of a good EPC contractor and educated investor for their selection criteria for EPC contractor.
- Banks/ financial institution are the major stakeholder in the solar plant investment. Selection of a reputed EPC contractor for your solar money plant can help you to get cheaper finance. Typically saying a 0.5% decrease in cost of debt can reduce the LCOE (Levelized cost of electricity) even by 30 paisa/ kWh.
- Chances of meeting the promised time line for the commission of solar money plant are very high with a reputed EPC contractor. Take a case that this reputed EPC contractor commission plant one month before than the other one, and a typical 1 MW solar money plant generated around 1.3 Lac unit of electricity. This means you can enjoy this 1.3 lac of units which you cannot even think with another EPC contractor.
- On are blog, FGC team has already published many article on system sizing and other important parameters like Ampacity of cables, Power tolerance, module clean best practices etc. and there monitory benefits. Only a good EPC contractor can let you have those monitory benefits at the time of investment and after commissioning of solar money plant.
Posed by: Gaurav K. Sharma