What is solar EPC (engineering procurement & construction)?

To ensure the successful implementation of solar projects, the Solar EPC (Engineering, Procurement, and Construction) model is widely adopted. Solar energy continues to gain momentum as one of the most promising renewable energy sources.

What is solar EPC & how does it work?

While it’s commonly used for commercial and industrial projects, residential projects can also benefit from the EPC approach, particularly for larger installations. Solar EPC, encompassing Engineering, Procurement, and Construction, plays a pivotal role in bringing solar energy projects from concept to reality.

Do solar projects need an EPC contract?

In our experience, most utility-scale solar projects use an EPC Contract. An operation and maintenance agreement: This is usually a medium- to long-term Operating and Maintenance Agreement (O&M Agreement) with an Operator. The term of the O&M Agreement will vary from project to project.

What is an EPC contract?

The Project Company needs only to turn a key to start operating the facility, hence EPC Contracts are sometimes called ‘turnkey’ construction contracts. The Contractor must deliver the complete facility for a guaranteed price by a guaranteed date and the facility must perform to the specified level.

What is a solar EPC model?

By centralizing these responsibilities, the EPC model minimizes risks, simplifies project timelines, and often results in cost savings for project developers. Solar EPC is often preferred over other models, such as the design-bid-build approach, where separate contractors handle design, procurement, and construction.

Could new EPCs enter renewables?

New types of EPCs could also enter renewables. A few large, diversified EPCs that serve other industries have begun expanding into solar. And as owners look for available talent pools to get projects in the ground, local or regional contractors could also be reskilled to install solar projects.