Solar PV project due diligence before acquisition: document and risk checklist

Before acquiring a solar project the buyer reviews three areas: legal (land, permits, grid), technical (design, yield, grid) and financial (model, costs, revenues). Most deals fail on grid connection and land title, so start there.

1. Land

• land registry extracts for all plots, no encumbrances blocking the project,
• leases covering the operating period (usually 25–30 years) with extension options,
• easements and access to a public road,
• no third-party claims or boundary disputes.

2. Zoning and environment

• zoning plan allowing renewables or a final zoning decision,
• environmental decision where required and consistent with the design,
• nature constraints (Natura 2000, habitats), heritage, drainage.

3. Grid connection

• connection conditions: capacity, point, validity,
• signed connection agreement: dates, cost, securities and advance payments,
• operator consent or no obstacle on change of control,
• curtailment risk.

4. Permits

• final building permit,
• design consistent with decisions and connection conditions,
• permit validity dates.

5. Project company (SPV)

• registry, articles, ownership history,
• liabilities, developer agreements, success fees and options,
• tax position.

6. Technical and economics

• technical design and component selection,
• independent energy yield assessment,
• financial model: CAPEX, OPEX, revenues, DSCR, IRR.

Compare your model with the Enedeal calculator, which runs four financing models on identical assumptions.

How Enedeal supports due diligence

Project documents are released only after buyer verification and an NDA. The team organises the data, answers questions and connects buyers with technical, legal and financial advisers.