In Solar Power projects, EPC contract just takes anywhere between three to six months. Hence the risk is minimal. But the market is competitive due to the nature of the work. Some of the suppliers are also venturing into EPC business. They are offering one stop solutions to the Solar Developers.

EPC contractors are also offering innovative, affordable and attractive packages to the Solar Developers including favorable credit options, cheap finance and equity participation.

As far as Indian Energy market is concerned, around 30% of energy needs are met through imports. Per capita electricity consumption is one seventh of China’s. Indian thermal power projects survive on heavily subsidized coal whose price is around one third of the international market. But the Government of India is moving in the direction of deregulation of these prices like in the case Natural gas, petrol and diesel. Some category of consumers like commercial, are already paying power tariffs which are higher than financially viable solar power prices!!! The cost of power produced using natural gas is between Rs.6-7/unit. Hence, Solar Power already attained Grid Parity for some category of consumers and for the rest, it is just two to three years away.

Hence it is also in the best interest of the EPC contractor to get involved with the Developer, in one form or the other, to reap long term dividends.