Fitch rates risks to solar projects
Construction delays, solar energy output, unpredictable technology and regulatory stability all present distinct risks to solar power projects, according to a new Fitch Ratings report.
The report comes to this conclusion based on Fitch's rating of more than 25 public and private utility-scale photovoltaic, concentrating PV, and thermal concentrating solar power projects over the past two years.
Solar projects are vulnerable to unforeseen environmental and archeological risks resulting in construction delays. Archeological sites in particular, according to Fitch, can cause significant construction delays of three months or longer, meaning considerable cost overruns.
There is also uncertainty regarding the future pattern of solar production based on forecasts and the impact of climate change.
Limited long-term operational performance data for certain solar technologies raises the chance that actual performance may be lower and actual costs higher than anticipated.
- see this report (registration required)