Guide
7 risks to weigh before you invest in a solar plant
Real, manageable risks — stated plainly, not hidden in a brochure.
A solar plant is a stable asset, but “stable” is not “risk-free”. An honest investor weighs these seven before committing — and each is manageable when you plan for it.
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The seven
Plan for each of these from day one.
- Offtaker (discom) payment delays — choose the scheme and counterparty carefully
- Generation shortfall — guard against it with a P90 yield estimate, not P50
- Execution & equipment quality — BOQ verification and an owner’s engineer
- Evacuation/curtailment risk — confirm substation capacity before you buy land
- Construction delay — the DREBP clock penalises at ₹5,555/MW/day
- Degradation — India hot-climate panels can lose 0.7–0.8%/yr, not the 0.4% datasheet
- Liquidity/exit — solar assets are less liquid than listed securities
Frequently Asked Questions
With a government PPA, predictable generation and a 25-year life, it offers stable, inflation-resistant cash flows. The risks above are real but manageable with proper structuring, diligence and oversight — which is exactly our job.
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