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1. Policy change risks and countermeasures

1. The risk of obtaining local subsidies
Power plant developers need to obtain the detailed implementation rules of the local government on subsidies as soon as possible, and confirm the subsidy scope and scale with the government policy contact person for a second time, especially if there are restrictions on equipment procurement for subsidy policies, they need to submit them to the company's procurement department in advance In order to guide the equipment procurement plan and ensure that the project can enjoy local subsidies.

2. Project site selection risk

For the investment in rooftop solar power plants that are fully connected to the Internet, project developers need to communicate with the construction bureau of the administrative area where the building is located in advance to understand the overall planning near the building and avoid possible roof shading problems.

In the preliminary work of the project development of the ground solar power station, the developer must collect detailed information on the current status of utilization and development planning from the local land bureau, forestry bureau, water conservancy bureau, yellow commission and other relevant departments to clarify whether the land for the solar power station site involves Overburden mines, agricultural land, military installations and management areas, nature reserves, ecologically fragile areas, wetland protection areas, cultural relics protection areas, and religious and cultural areas. If the factory land involves the above-mentioned areas that are not allowed to be used, re-select the project site as soon as possible.

3. Tax risk
The real large-scale start-up time of the domestic ground photovoltaic power station market is relatively short, and new formats such as "photovoltaic +" have only developed on a large scale in recent years. There are still many ambiguities in the country's land taxes and fees for photovoltaic projects. Therefore, project developers need to calculate in advance in the project investment budget and technical analysis on the basis of referring to land use taxes in other regions. At the same time, we can cooperate with relevant enterprises to seek preferential tax policies from the local government, taxation department and land management authority.

2. Market change risks and coping strategies

1. Risk of component price changes
The procurement department of the investment enterprise should establish a weekly information collection mechanism to keep abreast of the latest quotations of components, and closely combine the actual demand time of components of each project to ensure that the components of each project can obtain the lowest purchase price.

2. Power station index risk
The implementation of the project and the capital plan need to be closely combined with the confirmation of the power plant indicators. Before the project is implemented, the power plant developers need to establish an effective information acquisition mechanism with the local provincial development and reform commission to understand the project's provincial filing scale and annual index volume. And keep abreast of the real-time progress of the same batch of filing projects to ensure that the project implementation plan and actual progress meet the conditions for the project to obtain indicators.

3. Power station construction and stability maintenance risks
Investing companies should establish a "Project Stability Construction Guarantee Team" and an emergency response mechanism. For stability problems that arise during project construction, such as work blocking, the project manager must report to the company's project stability construction guarantee team as soon as possible. The local county government communicates with the object of work blocking to understand the reasons for blocking work, and can try to meet reasonable demands. For unreasonable demands, it needs to closely rely on the government to coordinate and solve them. prevent escalation.

4. Risk of power rationing
In the preliminary development work of the project, the developers actively communicated with the development planning department of the local power grid company and collected information to grasp the current status and development plan of the local power grid power supply, and to clarify whether the local power grid and power market have enough power capacity to absorb the power generation of the project. Whether the solar power generation projects that have been built have the phenomenon of light abandonment.
Based on the situation of the local power grid, it is recommended to properly adjust the over-installation scale of the project, so that the power generation capacity of the project can be accepted by the national power grid, and the power generation can be absorbed by the local power market, so as to reduce the occurrence of electricity curtailment and abandonment of photovoltaics.

5. On-grid tariff risk
According to the method of allocation indicators of solar power generation implementation competition mode issued by the province where the project is located, the decision-makers of investment enterprises need to carefully calculate the investment income of the project before the project is implemented, and deduce the lowest on-grid electricity price that the company can declare according to the lower limit of the company's acceptable rate of return. , and communicate closely with the local municipal development and reform commission and provincial development and reform commission to ensure that the project has an advantage in the declared electricity price, and can obtain the on-grid electricity price in the year of grid connection.

3. Technical risks and countermeasures

1. The risk of project completion on time
Investors should strictly control the process of project construction and equipment bidding, and ensure that the construction period can be implemented according to the established milestones from the implementation experience of similar local projects, the quality of project managers, the ability to advance funds, and the guarantee of equipment arrival. Complete the project on time, clarify the liability for breach of contract, and transfer part of the risk to the general contractor.

2. Electricity access risk
On the one hand, developers must confirm with the local power grid company in advance the feasibility of the use of access intervals. At the same time, in the early stage of project development, developers should communicate and negotiate with the county government, provincial and prefecture-level city power grid companies in advance to obtain power for the project as soon as possible. Access to the system approval to ensure that the transmission line project and the power station body project are implemented simultaneously.

3. Risk assessment of natural conditions
On the one hand, investors should comprehensively refer to a variety of solar power generation calculation software to evaluate the solar radiation at the site of the project, and fully combine the actual power generation of the local grid-connected solar power plant and the data of the local weather station to determine the final solar power plant. Electricity generation data per watt for the first year.
On the other hand, technicians should fully consider the impact of worsening smog on air quality and cleanliness in recent years. At the same time, technicians must go to the site to investigate and check the influence of auxiliary facilities such as the exhaust gas of thermal power plants on the amount of solar radiation.

4. Roof or land-related risks and countermeasures


1. Roof load risk

According to the difference between the cement roof and the color steel roof solar power plant construction pile foundation, the live load of the cement roof is set to be greater than or equal to 2kN/m2, and the live load of the color steel tile roof is greater than or equal to 0.25kN/m2.
Before the roof owner signs the roof lease contract, on the one hand, the investor obtains the roof design drawings from the roof owner to obtain the live load information, and at the same time needs to compare the actual roof conditions and the drawings to make a second match of the load to ensure that the actual load and the drawing load Be consistent and be able to meet the erection conditions of solar energy systems.

2. Roof or ground lease risk
1) For the issue of lease validity period
It is clearly stipulated in the roof lease contract that the lease period is 20 years, and at the same time it is stipulated that: after the lease contract expires, both parties will renew the lease contract for 5 years in the form of a supplementary agreement, and the price will remain unchanged.
2) Aiming at the problem of building demolition
Agree with the roof lessor in advance on the calculation basis and the distribution ratio of expropriation compensation for the suspension of production and business losses caused by the building owner's own poor management and the loss of solar power plants caused by the suspension of production and business when the house is facing expropriation, so as to protect the legality of investors rights and interests.

3) Risks for the main body of the roof lease contract
In the case of inconsistency between the power user and the building owner, the investor needs to require the building owner to show the ownership certificate of the construction site in addition to the aforementioned "Contract Energy Management Agreement" with the power user, and specify in the main contract The responsibility for the change of roof ownership shall be borne by the electricity user.
4) The house is illegal and has the risk of being demolished or banned
Before signing the lease contract with the roof owner, the investor of the solar power station must require the owner of the roof to provide the completion acceptance certificate, construction project planning permit, fire acceptance certificate and house property certificate. At the same time, investors must arrange developers to go to the local real estate registration department to conduct due diligence on the property rights of the houses and land provided by the roof owner to determine whether the houses and land are mortgaged. And add a compensation clause for the roof owner's mortgage right in the roof lease agreement or contract energy management agreement;

5) The risk that ground lease fees are included in sunk costs
In the case of the land lease agreement signed by the investor with the local government before the project is filed, the proportion and amount of lease prepayment should be reduced as much as possible to ensure the minimization of sunk costs.

5. Risks related to project operation and countermeasures

1. Electricity bill settlement risk
The investor and the power consumer first confirm the start time and reading of the metering device of the solar power station, and agree to use the starting time and reading of the power supply department as a reference in the contract energy management agreement.

At the same time, in order to avoid situations such as refusal to pay or arrears of electricity bills due to conflicts between electricity users and power station investors during the operation period of the power station. Before the implementation of the project, the investor must fully investigate the financial status and credit of the electricity user with the help of third-party evaluation agencies such as Dun & Bradstreet, comprehensively evaluate the possibility of the electricity user defaulting on the electricity fee, and clearly stipulate in the contractual energy management agreement Liability for breach of contract.


2. Operational stability risks of power consumption enterprises
The most intuitive manifestation of this risk is the self-consumption rate of solar power plants.
On the one hand, investors must understand the electricity load of the roof owner during the solar power generation period when developing the roof, and ensure that the solar power does not exceed the owner's electricity load during the same period in the design of the power station capacity, so as to ensure the highest proportion of self-generation and self-use.
The second is to fully investigate the development of the roof owner's industry and the company's own operating conditions. Prioritize the selection of excellent companies with great potential for industry development, good business performance, and no bad records to ensure stable demand for self-consumption electricity, thereby ensuring investors' project yields.