Why Bankability is Crucial in Solar Project Success: A Lesson from Fisker Automotive’s Bankruptcy
Choosing bankable suppliers is key to the long-term success of your large-scale solar project. As with any major investment in equipment, you need to ensure the manufacturers you rely on have the wherewithal to continue supporting your project even in the face of major financial headwinds.
The risks of procuring products from less established businesses appear in every market for complex capital equipment, and there are cautionary case studies in almost every manufacturing sector. The recent rise and fall of Fisker Automotive provides a perfect illustration for the risks that we continue to see with subscale equipment providers across the solar industry.
Fisker made headlines in the early 2010s as an electric vehicle startup poised to revolutionize the car industry. With bold promises, a sleek design, and significant backing, at times it looked like Fisker had the potential to capture its own slice of the auto industry. Despite its early promise, the company filed for bankruptcy earlier this year, and Fisker owners have been left scrambling to answer basic questions: Will I be able to get parts for my car? Will I be able to get insurance? Who will fix it?
What went wrong? The company never had a financial foundation to support its ambitions. The technology was impressive, the team was experienced, and early adopters were enthusiastic, but the company failed to perform financially. The result? A high-profile crash leaving behind helpless drivers and investors alike.
For utility-scale solar projects lasting 30 to 40 years, the lesson is clear: Your equipment providers need to be financially stable, with the potential not to just meet warranty commitments, but ensure that your plant can access spare parts and technical support for long-term performance.
Bankability means choosing manufacturers, and vendors, with the financial strength to weather market fluctuations, supply chain disruptions, and other unforeseen challenges. At RP Construction Services LLC, our business is built to connect solar developers and constructors with bankable equipment. We exist to help great projects get built faster and with less risk, and the only way to do that is to partner with manufacturers that are ready to support their goods for the long haul.
