Technical Due Diligence of a Photovoltaic System
Anyone who purchases or finances a plant makes decisions based on figures that almost always come from the seller. Technical due diligence is the independent verification that puts those figures to the test before closing: how much the plant actually produces, whether the permits are valid, what the contracts are worth, and what risks remain. The result isn’t a stamp of approval, but rather an assessment of how risks affect the price and terms—the factors an investor uses to negotiate or walk away from a deal.
The Areas in Detail
Thorough due diligence doesn't stop at documents: it compares what is reported with what is actually measured on the ground. That's where discrepancies most often come to light.
Expected Production Capacity
The figure on which the business plan is based is the one most often overestimated. We work with the P50 and P90 scenarios—that is, the probable and conservative production estimates—and it is the difference between the two that a buyer must be able to price. We compare the estimates with historical operating data, not just with project specifications.
Authorizations
We verify the validity of the title documents and ensure consistency between what was authorized and what was actually built. Any discrepancy discovered after closing affects the asset’s legal status and financeability and is among the most common issues raised in acquisitions.
O&M and Sales Contracts
Protections, counterparties, and the duration of energy management and sales contracts. A PPA with a weak counterparty or an O&M agreement that offers little protection reduces the real value even when the installed capacity is the same. We analyze these from the buyer’s perspective.
Connection and curtailment
Grid constraints and the risk that part of the output will be curtailed are affecting expected revenues. This is an issue that is becoming increasingly significant as the number of connected facilities grows: work to address congestion between the North and South is considered crucial, but the risk must be factored into pricing now.
System Status
The actual condition of the modules, inverters, structures, and systems, verified on-site and, where appropriate, through thermographic inspection of the modules. This is what distinguishes the stated output from the output the system can actually sustain over the years.
Price Risk
Market exposure when revenues depend on energy prices. Under the new FER X, the 20-year contract for difference covers part of this risk for awarded projects, while merchant plants or those with PPAs remain exposed to volatility: two different risk profiles that must be assessed separately.
What You Get
The outcome is not an abstract judgment but a concrete basis for decision-making.
Risk Overview
Technical, regulatory, and contractual risks associated with the asset, listed in order of importance.
Impact on value
The impact of each risk on the price and terms of the transaction.
Terms to be negotiated
The factors to consider when deciding whether to proceed, under what terms, and at what price.
Independence
An analysis that is not influenced by the suppliers or by those proposing the transaction.
How We Support You
We conduct independent and confidential due diligence for investors, funds, banks, and market participants in connection with acquisitions, financing, refinancing, or divestitures. Our independence from suppliers is what makes our reports valuable to decision-makers.
Go to related pages
Where to learn more, within the world of Onirico Suisse.
An initial assessment of the operation.
Tell us about the transaction—whether it involves an asset or a portfolio, the stage of negotiations, and the timeline. We’ll respond with an initial technical and economic analysis, provided confidentially, that outlines the main risks and their impact on value.