Why Bankability is Crucial in Solar Project Success

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.

RPCS Continues Expansion, Logistics with Mississippi Distribution Facility

RPCS Continues Expansion, Logistics with Mississippi Distribution Facility

 

Mississippi facilityMonterey, CALIF. MAY 28, 2020—RP Construction Services, Inc. (RPCS) announced earlier this week the opening of a new logistics facility in Kosciusko, Mississippi. The new facility is now the third distribution yard owned and operated by RPCS in order to serve the U.S. utility scale solar market, complementing RPCS’s Texas and California locations.

The facility, comprised of two warehouses, rests on a 10-acre property. Warehouse I (the West House) is a 25,000-square-foot kitting facility that will house all materials necessary for RPCS’s pre-assembly operations. The West House will also include a mechanic shop for servicing equipment, tools, and toolboxes for field crews. Warehouse II (the East House) is a 35,000-square-foot facility that will store all other essential components.

Adjacent to the West House is a two-acre laydown yard for inbound and outbound kitting components. The 40,000-square-foot lot just outside of the East House is currently storing 18,000 foundation piers and more than 7 megawatts of pre-assembled materials for Safe Harbor. At the north end of the property, two solar arrays will be installed for training, demo and testing purposes. Both warehouses will have two loading and unloading docks, which makes the transport of materials quicker and more streamlined.

Mississippi facilityThe facility is located in close proximity to RPCS’s steel supplier, Attala Steel, who has continued to be a valued partner and has played an integral role in RPCS’s foundation supply. This contiguity will offer unlimited options for distributing partial pier loads with RPCS’s material, and the ability to request materials at the last minute to complete projects to keep construction timelines on schedule.

“This is a big move for RPCS,” says Brendan Teague, RPCS Executive VP of Operations. “The new facility gives us ample indoor storage and packing capability, which greatly accelerates our ability to process and ship orders.”

In addition to added supply chain enhancement, the new facility will ensure greater material and inventory accuracy, more streamlined installs, and improved deployment of serviced equipment and tools.

 

 

RP Construction Services, Inc. (RPCS) is a leading solar tracker project design, supply, and installation subcontractor based in Monterey, California. The team specializes in site layout optimization, ancillary engineering services, tracker and foundation procurement, and complete mechanical installation. With more than 400 projects completed throughout the US, RPCS’s experience in the ground mount utility market ensures reliable support at every step of the project, delivering an unmatched level of quality and efficiency. To learn more about RPCS or to request a quote, visit stgrpcs.wpengine.com.