In India, the entire EPC portion of the solar power plant typically costs about 6-10% of a solar power plant’s total project cost – the higher end of the range is typically only for smaller solar power projects, and for large ground mounted solar power plants, it is in the range of 5-7%. This EPC cost does not include the cost of materials and components, but only their core services.
Note that EPCs typically quote a price for the turnkey implementation of a solar plant as a whole and not just for their services. It may hence be a bit difficult to figure out what percentage of their price is just for their service.
It is also worth making a remark here on cost vs quality when it comes to choosing an EPC. It is highly recommended not to make a low cost the primary selection criteria. For an EPC for whom price is the first selling point, it is a given that quality will get shortchanged. A high quality EPC, on the other hand, tries to bring down costs without compromising on quality through adopting best practices, such as managing the project well using construction management software specially designed for solar projects, arrangements with good quality component suppliers as well as tie ups with logistics providers
You might want to check out these questions too
- What kind of guarantees is provided by a good EPC? – Here
- Can you avail a free quote from an EPC before you decide on them? – Here
- How important is the solar EPCs’ transparency in transactions? – Here
- How will the level of sub-contracting done by a solar EPC affect the power plant installation? – Here
- What difference can a solar EPC’s skill in engineering design bring to the power plant? – Here
- What kind of team profile should you look for in a solar EPC? – Here
- What are the usual timelines provided by good EPCs for project completion? – Here
- What value addition can solar EPCs with good industry partnerships provide? – Here
- What should I be aware of while signing contracts with EPCs? – Here
- What are the certifications you need to look for in an EPC? – Here
- What are the critical value-adds to expect from high-quality solar EPCs? – Here