Representing Suntech, Joey Zheng, General Sales Manager for APMEA & LATAM, shared his views on evaluating equipment manufacturers, managing risks and support for solar and energy storage projects, and selecting partners that can provide long-term support throughout a project’s operating life.
Assessing Equipment Manufacturers and Warranty Commitments
When discussing what developers should consider before accepting a 25- or 30-year equipment warranty, Joey emphasized that bankability goes beyond product price and warranty terms. He introduced five factors for evaluating an equipment manufacturer: financial capability, long-term support, track record, reliability, and technology.
Joey explained that financial capability, long-term support, and track record are closely related to the company behind the product, while reliability and technology focus more directly on the product itself. For long-term contractual commitments, he highlighted the importance of assessing whether a manufacturer has the financial strength and organizational capability to fulfill its obligations throughout the warranty period.
Financial capability is particularly important in the highly competitive PV industry. Joey noted that developers should consider factors such as debt ratio, profitability, and financial sustainability when evaluating an equipment manufacturer’s ability to provide long-term support.
He also emphasized the importance of local support alongside global support. While headquarters can provide support for areas such as product delivery and contract fulfillment, local partners can play an important role in warranty services, maintenance, and response. Having reliable local support is therefore an important consideration when evaluating an equipment manufacturer for a long-term project.
Managing Risks and Support for Solar and Energy Storage
As solar projects increasingly incorporate energy storage, Joey noted that stakeholders need to consider the risks and requirements of the overall system rather than evaluating individual equipment separately.
For lenders and investors, this includes considering insurance and other measures to manage the risks associated with energy storage assets. Joey noted that storage systems require more specialized support when issues occur compared with individual solar modules, where a damaged module can generally be replaced more easily.
He therefore emphasized that equipment manufacturers need to be prepared for the support requirements of energy storage, including timely response and effective service capabilities. The ability to provide appropriate support when issues occur is an important consideration when evaluating equipment and project bankability.
Building Long-Term Partnerships for Project Success
Discussing long-term project considerations, Joey emphasized that the ability to fulfill commitments should be considered from the beginning of a project. From the warranty perspective, manufacturers need to fulfill their obligations throughout the agreed warranty term, while developers need to consider whether their chosen partners can continue to support the project over its operating life.
Rather than focusing only on the immediate economics of an investment, Joey encouraged stakeholders to consider the long-term relationship with their selected partners. His advice was to ask, before making an investment, whether the partner selected today can continue to work with and support the project throughout its expected lifetime, for example until 2040.
For projects designed to operate for decades, selecting partners that can provide continued support over time is an important consideration in building project bankability.
Recognized for Renewable Energy Collaboration
During the event, Suntech was honored with the Excellence Renewable Energy Collaboration of the Year award. The recognition reflects Suntech’s collaboration with partners across the renewable energy value chain and its participation in the development of solar and energy storage.
Looking ahead, Suntech will continue to engage with industry partners in Malaysia and the wider region, with a focus on reliable products, long-term support, and cooperation across the solar and energy storage value chain.
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