Hidden costs that may arise during field installation

Price quotes for solar power plant (SPP) investments often don't reflect the total cost of the project. While the prices of panels, inverters, construction, and other equipment are prominent, the real surprises arise during the installation phase. These unexpected costs can significantly impact project profitability.

We have compiled for you 5 hidden costs that can strain your budget in your solar power plant projects and are often overlooked:

The site is not always as it appears on the map or in the architectural drawings.

A site that appears suitable on the map at the start of a project may appear completely different upon arrival. In these areas, hard rocky ground, unexpected groundwater, drainage requirements, or unstable soil structure may require significantly more excavation, leveling, and foundation reinforcement work than planned. This translates to additional equipment rental, material, and labor costs for EPCs.

This beautiful weather has ruined me.

The construction schedule may seem perfect for the summer months, but snow or sudden downpours, unexpected strong winds, or extreme cold or heat can halt installation work for days, even weeks. These delays cost your budget in the form of idle crews waiting on site and the overtime paid to complete the work on time.

Coins lost on the road

Getting panels and heavy equipment to the construction site is no simple task. Transportation to narrow, rough roads, or remote areas, especially, can require specialized vehicles and equipment, the cost and delays of special permits from municipalities or highways, and unexpected bridge tolls or road damage can exceed your projected logistics budget.

Subcontractor and labor inefficiency

Cheap labor can actually be the most expensive option. Inexperienced or frequently changing subcontractor teams can perform faulty installations, work inefficiently on-site, and fail to comply with occupational safety regulations, leading to unexpected accidents and the resulting legal and financial liabilities. Furthermore, delays in the work due to a lack of qualified personnel can also be an additional cost.

Quality control and rework

Skipping quality control steps with the mindset of "get it done quickly" can lead to much larger costs later in the project. If a loose connector, improperly installed cable, or faulty grounding system malfunctions after commissioning, repairs can require panel removal, reinstallation, and additional personnel costs. This can result in significant loss of materials, time, and reputation.

Unfortunately, project success depends not only on good engineering but also on effectively managing field uncertainties. Recently, intense competition among EPC companies has driven prices down to near cost levels. In this competitive environment, companies often set bids much lower than necessary to secure contracts, but this often leads them to underestimate the critical risk involved in project management.

At this point, it's crucial for investors and EPC companies to establish a "realistic" budget, not an "optimistic" one, at the outset of the project. A detailed site inspection, comprehensive risk analysis, and a budgetary allowance for uncertainty are the best ways to ensure your project's profitability and on-time delivery when hidden costs emerge. Remember, trying to save money on site can actually be the biggest cost driver.