About to negotiate my first commercial solar deal — what mistakes should I avoid?
A little background: I’m an ECE grad student, and before going back to school I worked as a software engineer. I got laid off and the job market has been pretty rough, so I’ve been trying to figure out what direction I want to take next.
During my first quarter I took an Energy Public Policy class, which got me seriously interested in renewable energy and the economics behind commercial solar.
Over the last few months I’ve been learning the commercial solar business from the ground up; prospecting, utility bills and interval data, system sizing, installer quotes, incentives, financing, permitting, etc. My approach has been to work on the customer’s side, get quotes from different installers, compare the numbers, and help them figure out whether a project actually makes financial sense.
After a lot of cold calls and dead ends, I finally have my first real project moving into deal negotiations this week.
I’m excited, but I’m also very aware that there’s a lot I don’t know yet.
For those of you who have actually worked in commercial solar, EPC, development, or energy consulting: what should a first-timer be especially careful about before getting a customer under contract?
•A few things I’m already thinking about:
•Making sure the commission/referral agreement with the installer is airtight
•Who owns the customer relationship
•Change orders and unexpected project costs
• Utility/interconnection timelines
•Structural and electrical surprises
•Making sure projected savings aren’t overly optimistic
•Tax/incentive claims that I shouldn’t be making myself
•What happens if the project gets delayed or doesn’t pencil out after engineering
I’m particularly interested in the mistakes you made on your first few deals that you wish someone had warned you about.
Not selling anything here and I’m intentionally leaving out my company/site/contact info. Just looking to learn from people who have been doing this longer than I have.
Thanks!