Solon: Innovation and timing in service provision
Carmignano di Brenta, 29 October 2014. Solon chose Solar O&M Europe, one of the most distinguished international conferences focussing on operations & maintenance and asset management in the solar industry, to present to the large audience of investors and banking industry delegates a new type of services agreement that revolutionizes the schemes that have been adopted to date.
This innovative contract type has been developed in collaboration with the leading international law firm Watson, Farley & Williams. It proposes an ideal solution to the difficulties the owners of large photovoltaic plants are facing as a result of laws with retroactive effect that were introduced in Italy, which have raised serious doubts about their returns on their respective investments.
“This contract type, used in the market for the first time by Solon, stipulates a fee proportional to the actual energy produced by the photovoltaic plant and due by the client to the O&M operator,” Eugenio Tranchino, partner and Watson, Farley & Williams Head of Italy, comments. “More specifically, the fee is established in euro cents per kilowatt hour produced by the plant, thus aligning the interests of the operator with those of the client. The contract has been structured and drafted by our firm in order to meet the demands of both the market and the banking system. It defines not only the contractual responsibilities, but also the guarantees that the operator will provide so that this new contractual solution complies with the requirements of the lenders.”
“The benefits are manifold,” adds Mirko Giro, engineer and Director of the International Business Unit Service of Solon S.p.A. “Unlike traditional contracts based on complex formulas to determine performance, this contract type is based on the kilowatt hours produced, which provide a clear and objective basis for calculation. This is useful not only to determine the amount due by the client to the service provider, but also to simplify the relationships between the various parties involved in the management of the asset. A great advantage for the client is that the expenses incurred in connection with the O&M activities are directly proportional to the production of their plant.”
“At a time of shrinking revenues, this new contract type is definitely a great alternative to the predetermined fixed fee, and we are particularly proud to be, once again, the first on the market to offer a new and interesting solution," he concludes.
SOLON is a leading producer of high-quality solar power modules and solar systems for rooftop, roof integrated and greenfield installations. As a specialist in the development, construction, and maintenance of commercial and utility-scale solar systems, SOLON delivers complete turnkey power plants worldwide.
Besides its long standing experience as EPC contractor and system integrator of PV powerplants worldwide, SOLON now offers energy efficiency services aimed at reducing energy consumption and costs, integrating with renewable-source based technologies wherever appropriate.
With its subsidiaries in Italy, UAE, Germany and the USA SOLON employs a total of approx. 400 people across the globe.
WATSON, FARLEY & WILLIAMS
Watson, Farley & Williams is an international law firm with offices in London, New York, Paris, Hamburg, Munich, Frankfurt, Rome, Milan, Madrid, Athens, Dubai, Singapore, Bangkok, and Hong Kong. The firm currently has more than 415 lawyers and over 800 staff.
Watson, Farley & Williams is a leading international law firm providing services of high quality and value to clients throughout a range of industry sectors, with particular focus on: Finance & Investment, Maritime, Energy, Natural Resources, Transport, Real Estate and ICT. Lawyers from our international offices work as integrated teams to provide practical, commercially focused legal services. Our locations allow us sufficient geographical spread to be competitive in the global market and to provide consistently high quality legal services to our clients.
All references to ‘Watson, Farley & Williams’ and ‘the firm’ in this document mean Watson, Farley & Williams LLP and/or its affiliated undertakings. Any reference to a 'partner' means a member of Watson, Farley & Williams LLP, or a member or partner in an affiliated undertaking, or an employee or consultant with equivalent standing and qualification.