As covered in our previous articles in this series (Article 1, Article 2, Article 3), conducting technical due diligence before a purchase/acquisition is essential for reducing risk and operating expense.
If it’s so important, should you do this work in house?
There is one big reason to consider doing the work in-house: it can be the lowest cost.
However, that’s only true if you have enough work to keep them fully utilized. If you need to pay their salary even when they aren’t doing the productive work, it may cost much more.
Why should you outsource?
Outsourcing is the best model for most firms in the solar industry. Here is a list of the major reasons why:
- Specialists in all areas:
- Electrical Engineering
- Structural Engineering
- Civil/Environmental Engineering
- Construction management
- On-site electrical Testing
- Monitoring/Performance Engineering
- Technical Contract Review
- Increased bandwidth – Technical due diligence on portfolios is not steady work. You need an engineering resource that can quickly ramp up and down.
- Lowest cost – If you don’t have a constant flow of projects, you only pay when you need the engineers which results in savings for all but the very largest firms.
- Reduce Travel – With a consultant with teams spread out geographically, they can visit sits faster and most cost effectively.
Unless you have a very high volume to justify the cost of hiring a few folks to cover the wide range of expertise needed, you will get a higher level of service at a lower price by outsourcing to a specialist such as PV Pros.
PV Pros has the expertise and a high bandwidth to conduct Technical Due Diligence at a high speed and quality. We review all technical aspects of design, construction, and energy production to identify risks and expenses that must be modeled before your negotiation and acquisition. Reach out today to learn more.