EPC Contractor for an SPP: How to Choose Wisely

20.07.23

In the modern realities of the Ukrainian market, own solar generation has become a matter not only of environmental friendliness, but also of business survival and competitiveness. When a company decides to invest in a solar power plant (SPP), the key factor for success is not so much the equipment as the choice of the general contractor.

Who is an EPC contractor for a SPP, why the Engineering, Procurement and Construction format is the most profitable for commercial projects and how to avoid fatal mistakes when choosing a company, we will learn in the article.

What is an EPC contractor and why is it important for business?

The abbreviation EPC stands for Engineering, Procurement and Construction (design, procurement and construction). Concluding a contract with a single contractor means full responsibility of one company for the entire life cycle of the project.

Instead of coordinating dozens of separate subcontractors (separate designers, separate panel suppliers and an installation team), the business receives a comprehensive turnkey solution.

Development and audit

Selection of a site or roof, calculation of a feasibility study (FEO) and a financial model.

Design

Development of engineering diagrams and obtaining technical specifications from the distribution system operator (DSO).

Procurement

Supply of equipment exclusively from the prestigious Tier 1 list (BloombergNEF).

Construction and installation

Professional installation and commissioning work.

O&M service

Follow-up maintenance, monitoring and technical support of the station.

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The main criteria for choosing an EPC contractor: what should businesses look for?

The solar energy market is dynamic, but the implementation of industrial facilities requires in-depth engineering expertise. When choosing an EPC contractor for the installation and construction of a solar power plant, pay attention to the following criteria:

  1. Experience and portfolio of implemented projects - pay attention not to words, but to numbers. A reliable contractor has years of experience and dozens of megawatts of installed capacity.

  2. Reputation and status in the market - reputable companies are included in industry ratings of leading publications (for example, Top-10 of industrial solar energy of Ukraine). Trust of the largest well-known companies - direct proof of the contractor's reliability.

  3. Equipment quality - check whether the contractor works with proven global brands of solar panels and inverters (Tier 1), because generation for the next 25 years depends on it.

  4. Comprehensiveness of services (O&M and support) - the presence of our own service teams guarantees round-the-clock monitoring and prompt response.

Typical mistakes when choosing a contractor

Attempting to save money at the stage of choosing a company often leads to the opposite results. The most common business mistakes:

  • Focusing exclusively on the lowest price. Suspicious cheap offers usually mean the use of cheap equipment of unknown brands, savings on protective automation, or the lack of a full-fledged project.

  • Distribution of responsibility between different companies. If one company designs the project, another buys the equipment, and a third installs it, in the event of an accident or a generation shortfall, you will not find the culprits. The EPC format completely eliminates this risk.

  • Lack of payback (ROI) calculation. Non-professional contractors simply “sell panels” without analyzing the enterprise’s consumption profile, load schedules, and the possibilities of integrating energy storage systems (ESS) or energy arbitrage.

Why do businesses choose ETL Group?

The experience of previous winters has shown companies that short-term power outages can completely stop production, lead to loss of raw materials, or termination of contracts. That is why companies choose ETL Group as a reliable general energy partner.

National scale

We have implemented dozens of projects in 16 regions of Ukraine.

Expertise in complex solutions

We combine solar power plants (SPPs) with industrial energy storage systems (ESSs) and intelligent management systems (EMSs).

Transparency and guarantees

We take full legal, engineering and financial responsibility for the result.

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Checklist: 5 questions to a potential EPC contractor before signing a contract

  1. How many megawatts are in your portfolio and are there examples of similar projects in my industry?
  2. Do you provide a full cycle of services — from obtaining technical specifications to commissioning and service?
  3. What brands of equipment are used and do they have Tier 1 certificates?
  4. How exactly is the return on investment (ROI) calculated and does the project take into account the possibility of installing energy storage systems (ESS)?
  5. What warranties for equipment and installation work are specified in the contract?

Make your business energy independent with professionals.

Go solar, go future!
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