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Solar Energy Contracts

What is a Turnkey EPC contract?

A turnkey EPC contract means the contractor handles everything from design to commissioning and hands over a fully operational solar plant for a fixed price.

Can I terminate a PPA early?

Early termination clauses are critical. Usually, termination entails significant penalties unless it's due to a specific default or force majeure event outlined in the contract.

How to protect against panel degradation?

Contracts with suppliers must include long-term performance warranties guaranteeing that panels will retain a certain efficiency (e.g., 80%) after 25 years.

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Solar Energy Contracts encompass a wide range of legal documents regulating the construction, operation, and energy sales of solar energy projects. These contracts form the foundation of a project's financial stability. Without correctly drafted EPC (construction), O&M (operation and maintenance), and PPA (purchase) agreements, obtaining bank financing and managing risks is impossible. The specifics of solar energy (irradiation variability, panel degradation) require specific contractual terms such as Performance Ratio Guarantees and damage compensation.

Lawyers represented on the Legal.ge platform offer preparation and negotiation of solar energy contracts. Services include:

  • EPC Contracts (Engineering, Procurement, Construction): Turnkey construction contracts where the contractor assumes full responsibility for the timely and quality completion of the plant.
  • O&M Contracts (Operation and Maintenance): Plant operation and technical maintenance agreements ensuring equipment functionality and performance guarantees.
  • PPA Contracts (Power Purchase Agreement): Energy purchase agreements with private consumers (Corporate PPA) or the state (within auctions), fixing tariffs and delivery terms.
  • Lease Agreements: Land or roof lease agreements for solar panel installation, outlining owner and developer rights for 20-25 years.
  • Equipment Supply Contracts: International purchase agreements with manufacturers of panels, inverters, and structures.

Solar energy contract services are necessary in the following scenarios:

  • An investor builds a solar plant and needs a guarantee that the contractor will compensate for losses if the plant fails to reach promised capacity. A lawyer prepares a strict EPC contract.
  • A company leases a warehouse roof to install solar panels. A lawyer regulates roof repair responsibilities and access rights in the lease agreement.
  • A solar plant owner sells energy directly to a neighboring factory. A direct PPA is needed, defining tariff indexation and payment terms.
  • A developer needs a bank loan. The bank requires an audit of all major contracts to verify "Bankability."

The field is regulated by the Civil Code of Georgia and energy legislation. Solar energy contracts often utilize international standards (e.g., FIDIC), facilitating foreign investor participation.

Collaborating with a Legal.ge specialist ensures the protection of your investment. A correctly drafted contract is the best insurance against technical and financial risks. Our lawyers will help you create a solid contractual base for your solar project.

Find contract law experts on Legal.ge. Our platform gives you access to lawyers experienced in energy transactions.

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