Managing the Unpredictable in Solar Project Finance
North American Clean Energy – November/December 2020
By Kimberlee Centera, CEO, TerraPro Solutions
In solar project development, there is a 100% certainty that things will change along the way. Changes can originate from a myriad of places across the development spectrum. The engineering design team may have found a newer, better technology than originally planned. A crossing agreement might need to be negotiated. Sometimes an endangered species will be discovered, thus requiring a new placement of the equipment. During development, the various teams such as engineering, survey, or construction, may make decisions that can impact the entire project. What appears to be a small change, often requires painstaking curative work to meet the legal requirements for the title work, which is an essential piece of the financing puzzle.
The various surprises that are likely to occur, can never be anticipated at the front end. If risks cannot be avoided, what can you do to ensure the success of your project? You can follow these best practices to mitigate risk: