Solar Project Performance May Be Threatened By Satcon Bankruptcy - Semi-Annual Audits Should be Conducted to Ensure Project Performance

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If your solar project uses Satcon-brand inverters to convert the direct current generated by your solar panels into alternating current, you may have recently received notice from Satcon or your installation contractor that Satcon has filed for bankruptcy. While Satcon initially claimed that it would uphold the 10-year manufacturer warranties that it was required to provide under the California Solar Initiative, the recent liquidation step in the bankruptcy proceedings indicates that such warranties will likely not be upheld.

The Satcon bankruptcy highlights the need for all solar projects to conduct at least semi-annual performance audits following project completion to ensure that the project performs as projected and to quickly address performance issues, calling on the installation contractor and/or manufacturer warranties as needed. For solar projects using Satcon inverters, options for protecting your solar project investment range from third-party obtained warranties, third-party maintenance contracts and/or substitute and/or umbrella warranty and maintenance agreements with the installation contractor. Potential remedies also include a performance bond surety, depending on whether a bond was obtained and the language in the bond.

For more details or questions about the Satcon bankruptcy, auditing your solar project’s performance or other renewable energy projects, please contact Sophie Akins or an attorney in the firm’s Renewable Energy practice group.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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