Should you go for an EPC that provides O&M (Operations and Maintenance) services as well?

O&M services typically offered encompasse routine maintenance of the plant and minor part replacement to ensure maximum generation from the plant.  O&M annual contracts are typically about Rs. 5-6 Lakhs/MW without trackers and 7-8 Lakhs/MW with trackers, usually escalating annually at 3%.

O&M function is often outsourced to O&M contractors who may be the EPC themselves or 3rd party specialists.

In the upper commercial & industrial market segments as well as ground-mounted plants, going for an EPC that bundles O&M services can be comfortable for the developer and ensure quick turnaround for repairs.

For ground-mounted power plants, some independent companies add additional value through extended O&M in the form of asset management services. Asset management also comprises activities such as security management for the power plant, warranty and insurance claims management, and receivables management from the purchaser of power. Due to the broad range of services they provide some power plant owners are inclined to go for these independent asset managers.

But the broad trend has been for developers to go for EPCs that bundle O&M services along with their offerings.

You might want to check out these questions too on Choosing EPCs

  • How Do I Choose the Right Installer for a Rooftop Solar System? – Here
  • How to Choose the Right EPC for Your Solar PV Power Plant – Here
  • How do you know whether an EPC is credible? – Here
  • What are the don’ts while choosing a solar EPC? – Here
  • What metrics should you use to evaluate the past performance of an EPC? – Here
  • What are the value-added services that can be provided by good EPCs apart from efficient power plant installation? – Here

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