EPCs are the most critical component in the implementation of a solar PV power plant, as they are the glue that put together the design, procurement and the complete construction. For an industry in its initial stages, selecting the right company for turnkey implementation is not surprisingly one of the most critical activities for a developer or rooftop owner.
While the difference between a good and very good (or great) EPC might not sound like a lot on paper, remember this: Even a 2% increase in output as a result of your choosing a very good EPC (instead of a good enough EPC) increases your output per MW by about 30000 units a year, or close to one million units over a 25-year lifetime. That would be about 60-70 lacs additional money for you for the project lifetime, and this is just for 1 MW.
In addition, a very good EPC might even be able to assist you in getting a loan at a slightly cheaper interest rate (or you’re going with a very good EPC might make the bank perceive the project as lower risk and reduce the interest rate a wee bit). Even a fractionally lower interest rate could significantly increase your RoI. And there could be more.
A very good EPC, because of meticulous planning, could even complete the solar power plant a month before a good-enough-EPC. Now that would be project cash flowing a month earlier.
You might want to check out these questions too on Basic of Solar EPCs
- What are the different kinds of solar EPCs? – Here
- What are the roles and responsibilities of a solar EPC? – Here
- How many EPCs are there in India? – Here
- Solar EPC in India – Roles, Value Chain, Companies, Cost – Here
- Solar EPC Contracts – Terms & Conditions, Formats – Here
- What could be some of the consequences of going for a poor quality solar EPC? – Here
- Should I go for a small EPC or a large EPC? – Here
- What are the critical characteristics of an EPC I should be most concerned about? – Here