S.A.G. Solarstrom may have to quit solar

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Frieburg-based solar plant developer S.A.G. Solarstrom has told pv magazine it may have to pull out of solar because of the escalating cost of projects.

A spokesman for the German developer warned the business model of the company is under examination in the wake of yesterday’s announcement that a major contract with an international energy company had fallen through.

Solarstrom announced yesterday that the demands made of it by the unnamed energy company, in terms of a downpayment ahead of construction and warranty guarantees, had caused the deal to fall through.

Although Solarstrom refused to reveal any further details, it is thought the contract would have been for projects amounting to around 117 MW in Britain this year and in 2014.

The company press release stated Solarstrom will consider whether its business model can continue to be viable with today’s clients seeking up to 20% of a project’s volume payable in advance and up to 10% of the value needed for post-construction guarantees of delivery.