Solar PV Facility Project Financing & Contracting

pwc Home Solar industry snapshot How to use this guide Project Alternative Contract R&D Due structure project structure documents tax diligence Key issues Contact Overview Over the past 15 years, Australia's renewable energy market has continued to attract massive interest from developers, contractors, manufacturers, and local and international investors. However, despite having some of the highest average solar radiation per square metre of any continent in the world, some of the highest per capita uptake of residential rooftop solar, and world-leading solar PV technology, mid-scale and large-scale solar development has lagged behind the rest of the world. Given the continuing cost reductions in solar technology, Australia is on the cusp of a boom in privately developed solar PV facilities. As well as international and national commitments to renewable energy targets, key drivers are the increasingly large number of local government authorities actively seeking to increase their use of renewable energy, creating a substantial demand for a wide range of renewable energy solutions. Furthermore, an increasing number of solar PV facilities are being developed to directly service private property, such as university campuses and retail shopping centres. Formulated with the key risks facing solar projects in front of mind, and sensitive to the needs and risk profiles of developers, PwC has applied its expertise and experience in renewable energy project finance and project contracting to develop a suite of Precedent Project Documents which facilitate the contracting process for small to mid-scale solar PV facilities. While the detail of the contractual structure will vary from project to project, depending on the factors including size, location and parties, these documents encompass the majority of key relationships in the financing and development of a solar facility. In particular, the contractual structure allows for developers to employ a turnkey style solution, outsourcing the majority of construction and operational risk to third party contractors, while at the same time ensuring a secure long-term cash flow through a Power Purchase Agreement. However, for completeness (and as is sometimes required by financiers) we have also provided arm's length supply contracts for inverters and panels. <> + Solar industry snapshot + How to use this guide + Project structure + Alternative project structure + Contract documents + R&D tax + Due dilligence + Key issues + Contract

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