Quality-led Procurement Approach

Rigorous analysis and inspection to supplier and equipment selection

• Ingots, wafers, cells, modules
• Inverters, cables, structures
• Life cycle costing - securing the best value over the lifetime of a solar park
• Operation and maintenance service contracts
• Bank liaison and financing
• Contract enhancements (see tabbed content for more details)
• Third party insurance (see tabbed content for more details)

Proportion of spending on component analysis/inspection

Hugh's knowledge of the sector and his approach to quality assurance was extremely helpful to EON's launch of its own brand PV modules. He assisted in finding the right partners as well as helping negotiate the quality assurance paragraphs in the sales contract. He is both professional and passionate about quality assurance.
-E.ON project Manager

• Contract enhancements
• Third party insurance

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* Module Procurement Services Contract Enhancements
Contract enhancements enable more control and access:

• Pre-approve bill of materials (BOM)
  
• Our own high specifications relating to manufacturers' SOP
  
• Complete access to all parts of production and transport stations in factory
  
• Ability to reject product in China and in UK/Europe
  
• Penalties and hold back for unresolved QC issues
  
• L/C based on independent QC certificates
  
• Creation of commercial leverage for risk reduction
  

** Third party insurance 
Third party insurance with Solar Insurance & Finance, an independent insurance broker specialized in PV system insurances:

• Carry out yearly full factory audits in the factories of module and inverter manufacturers 
• Accelerate the applications for the insurance offers 
• Reduce premiums
• Provide suggestions to manufacturer on improving quality control and process control 
• Operational
• Business Interruption
• Natural Disasters
• Inherent Defect/Warranty

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More on Third Party Insurance

Benefits for Investors
Since we began implementing our quality-led procurement approach, we have inspected 100MW with the following benefits to our clients:

• Rejected an entire 32MW batch (€14.4m saving)
• Of the rest we switched out on average 2% of sub-standard panels (1.36 MW) based on an average of 0.50€/Wp -- we have saved €680k of potentially flawed modules
• We estimate that higher quality = higher power classes of 2% giving us £52k additional revenue per MWp over the lifetime of the park (20 years) 
• We have negotiated £200k of savings