July 11, 2026

How to Evaluate a Commercial Solar EPC Proposal in the UAE

A commercial solar Engineering, Procurement and Construction proposal, commonly called a solar EPC proposal, should explain more than the price and installed capacity. It should show how the system was sized, what equipment will be supplied, which approvals are included, how performance was estimated and who remains responsible after commissioning.

Comparing proposals only by cost per kilowatt can lead to an undersized system, unrealistic savings estimates or additional charges during execution. UAE businesses should evaluate the technical, commercial and operational scope together before appointing a solar EPC contractor.

Arni Energy delivers commercial and industrial solar projects through an integrated EPC model covering design, engineering, procurement, construction and commissioning.

What Should a Complete Solar EPC Proposal Include?

A clear proposal should define the full route from site assessment to operational handover.

The core sections normally include:

  • Site conditions and electricity consumption data.
  • Proposed system capacity and solar layout.
  • Annual energy generation estimate.
  • Equipment specifications and quantities.
  • Structural, civil and electrical scope.
  • Utility approvals and grid connection responsibilities.
  • Project schedule and payment milestones.
  • Testing, commissioning and handover requirements.
  • Product warranties and workmanship obligations.
  • Monitoring, maintenance and after-sales support.
  • Commercial assumptions, exclusions and contract terms.

Missing information should be clarified before proposals are compared. Two offers with the same headline capacity may include very different levels of engineering, equipment and project responsibility.

Does the Proposed Solar Capacity Match the Business’s Electricity Demand?

The EPC contractor should explain how the proposed capacity was calculated.

The assessment should use recent electricity consumption, daytime load, seasonal changes and the available installation area. For businesses with changing operations, the proposal should also consider planned equipment additions, production expansion or changes in operating hours.

A larger solar system does not automatically create greater value. If generation regularly exceeds onsite demand or connection limits, part of the capacity may not deliver the expected commercial benefit.

The proposal should clearly state:

  • The electricity data used in the assessment.
  • The proposed capacity in kilowatt-peak or megawatt-peak.
  • Expected annual solar generation.
  • Estimated onsite consumption of generated electricity.
  • Any restrictions caused by the roof, land, parking area or grid connection.

The system size should be supported by site and load data rather than selected as a standard package.

Are the Solar Generation and Savings Estimates Realistic?

Energy generation estimates are central to the business case, but they depend on several assumptions.

The proposal should account for solar irradiation, panel orientation, tilt, shading, module temperature, inverter losses, cable losses, soiling and expected system availability. It should also identify the software, data source or engineering method used to prepare the estimate.

In UAE conditions, dust, heat and cleaning frequency can materially affect actual production. A proposal that presents only ideal output without explaining system losses provides an incomplete forecast.

Businesses should review:

  • Annual generation in kilowatt-hours.
  • The assumed performance losses.
  • Expected system degradation over time.
  • Electricity tariff assumptions.
  • The method used to calculate savings.
  • Whether electricity price increases have been assumed.
  • Whether exported electricity or credits are included.

Financial projections should separate confirmed inputs from assumptions. Long-term savings should not depend on unexplained tariff increases or unrealistically low performance losses.

What Equipment Is Included in the EPC Proposal?

The proposal should identify the main equipment by manufacturer, model and technical specification.

At minimum, this should cover solar modules, inverters, mounting structures, cables, protection equipment, monitoring systems and electrical panels. Generic descriptions such as “Tier 1 panels” are not enough to compare equipment accurately.

The evaluation should consider:

Equipment areaWhat to verify
Solar modulesManufacturer, model, technology, output, efficiency and warranty
InvertersManufacturer, model, capacity, efficiency and replacement strategy
Mounting structureMaterial, corrosion protection and design basis
Electrical equipmentProtection devices, switchgear, cables and enclosure ratings
Monitoring systemData access, alerts, reporting and communication method
MeteringIncluded meters and compatibility with utility requirements

The buyer should also confirm whether the contractor may substitute equipment after contract award. Any substitution should require equivalent or better technical performance and written approval.

Has the Contractor Assessed the Building or Site Properly?

A commercial solar proposal should be based on an actual site assessment, not only satellite images or approximate measurements.

For rooftop projects, the assessment should review structural capacity, roof condition, waterproofing, drainage, access routes, fire clearances and existing mechanical equipment.

For ground-mounted projects, it should consider soil conditions, land use, foundations, underground services, cable routes and drainage.

For solar carports, the proposal should address foundations, column locations, vehicle clearance, traffic movement, lighting and parking disruption during construction.

If structural verification or soil investigation is not included, the proposal should clearly state who will provide it and whether the price may change after the results are available.

Does the Proposal Cover the Full EPC Scope?

A low price may reflect an incomplete scope rather than a more efficient solution.

The proposal should distinguish between included work, optional work and exclusions. Particular attention should be paid to items that are often outside the headline solar equipment price.

These may include:

  • Structural strengthening.
  • Roof repairs or waterproofing.
  • Civil foundations and trenching.
  • Modification of existing electrical panels.
  • Transformer or switchgear upgrades.
  • Utility connection charges.
  • Authority submissions and permit fees.
  • Scaffolding, cranes and lifting equipment.
  • Temporary access or parking management.
  • Internet connection for remote monitoring.
  • Spare parts and specialist maintenance tools.

The EPC contractor should also define the point of connection and the boundary between the solar system and the business’s existing electrical infrastructure.

Who Is Responsible for UAE Solar Approvals and Grid Connection?

Approval requirements depend on the emirate, utility, property type and project configuration.

The proposal should identify the responsible authority and state which submissions, inspections and connection activities are managed by the EPC contractor.

For projects in Dubai, the proposal should address the applicable Shams Dubai requirements, including technical submissions, equipment eligibility, inspections, metering and grid connection.

For projects in other emirates, the contractor should confirm the requirements of the relevant electricity authority, municipality, free zone, industrial zone or property developer.

The proposal should clearly define responsibility for:

  • Preparing technical drawings and calculations.
  • Submitting the design for approval.
  • Coordinating comments and revisions.
  • Arranging inspections.
  • Providing approved equipment documentation.
  • Completing metering and connection procedures.
  • Paying authority and connection fees.

Approvals should be included in the project schedule. They should not be treated as an activity that starts after installation is complete.

How Should Commercial Solar EPC Prices Be Compared?

Proposals should first be normalised to the same technical and commercial scope.

Comparing total price alone can be misleading when system capacity, equipment quality, generation estimates or exclusions differ. Cost per installed kilowatt can be useful, but only after confirming that the offers cover equivalent work.

A practical comparison should include:

  • Total EPC price.
  • Installed DC and AC capacity.
  • Expected annual generation.
  • Cost per installed kilowatt.
  • Cost per expected annual kilowatt-hour.
  • Included approvals and civil works.
  • Warranty and maintenance scope.
  • Payment terms and retention.
  • Taxes, fees and exclusions.

The lowest initial price may not provide the lowest lifecycle cost. Equipment replacement, performance loss, limited monitoring and expensive maintenance access can increase long-term expenditure.

Are the Payment Terms Linked to Verifiable Milestones?

Payment milestones should correspond to completed and measurable project stages.

A commercial EPC payment schedule may be linked to design approval, equipment procurement, delivery, installation, testing, grid connection and final handover.

Businesses should avoid schedules that require most of the contract value before equipment delivery or meaningful site progress.

The proposal should also explain:

  • Any advance payment requirements.
  • Conditions for milestone certification.
  • Retention until final completion.
  • Treatment of approved variations.
  • Consequences of project delay.
  • Requirements for performance or advance-payment security, where applicable.

Payment terms should protect project cash flow without removing the contractor’s responsibility to complete the agreed scope.

What Project Schedule Should the Proposal Provide?

The schedule should include more than an estimated completion date.

It should identify the main phases of engineering, approvals, procurement, construction, testing and grid connection. Long-lead equipment and access restrictions should also be recognised.

The schedule should distinguish between:

  • Activities controlled by the EPC contractor.
  • Authority review periods.
  • Client approvals and site access.
  • Equipment delivery.
  • Shutdowns or electrical interruptions.
  • Weather-sensitive or operationally restricted work.

A credible schedule connects each stage to clear dependencies. An aggressive completion date without allowance for approvals, procurement or site constraints should be questioned.

What Performance Guarantees and Tests Are Included?

The proposal should define how the completed system will be tested and accepted.

Commissioning may include electrical testing, protection checks, inverter start-up, monitoring verification and confirmation that the installation matches approved drawings.

The contract should identify any guaranteed performance measures, such as installed capacity, system availability or a defined performance ratio. The test method, measurement period and exclusions should be clear.

The buyer should also receive a structured handover package containing:

  • Approved and as-built drawings.
  • Equipment datasheets and serial numbers.
  • Test and commissioning records.
  • Authority approvals and connection documents.
  • Operation and maintenance manuals.
  • Warranty certificates.
  • Monitoring access details.
  • Recommended spare parts and maintenance schedules.

A system should not be considered complete only because it has started generating electricity.

What Maintenance and Monitoring Support Is Provided?

The proposal should explain how system performance will be monitored after commissioning.

Remote monitoring should provide access to generation data, inverter status and fault alerts. The responsibilities for reviewing alerts and responding to problems must also be defined.

The maintenance scope may include:

  • Preventive inspections.
  • Module cleaning.
  • Electrical testing.
  • Inverter and switchgear checks.
  • Structural inspections.
  • Monitoring and performance reports.
  • Fault response and corrective maintenance.

The proposal should state whether maintenance is included in the EPC price, offered under a separate agreement or limited to a short post-handover period.

It should also distinguish equipment warranty from maintenance responsibility. A manufacturer warranty does not automatically include labour, access equipment, transport or system downtime.

Red Flags in a Commercial Solar EPC Proposal

Some proposal weaknesses should be addressed before contract award:

  • The system size is not linked to electricity consumption.
  • Annual generation is stated without loss assumptions.
  • Equipment is described without exact models.
  • Structural assessment is excluded or postponed.
  • Authority approvals are not assigned to either party.
  • Important civil or electrical works are listed as open-ended variations.
  • Savings depend on unexplained tariff escalation.
  • The project schedule excludes approval and grid-connection periods.
  • Product warranty is presented as a complete performance guarantee.
  • Monitoring, cleaning and fault response are not defined.
  • The proposal does not include a clear handover package.

A proposal does not need to predict every project condition, but it should clearly assign known responsibilities and explain how uncertainties will be managed.

Evaluating a Commercial Solar EPC Proposal with Arni Energy

Arni Energy provides full-scale solar EPC services for commercial and industrial projects, covering design, engineering, procurement, construction and commissioning.

We assess electricity demand, installation conditions, equipment requirements and project responsibilities before defining the final EPC scope. The objective is to provide a proposal that can be evaluated through clear technical assumptions, deliverables and execution boundaries.

Contact Arni Energy to assess a commercial solar site or review the technical and commercial scope required for a UAE solar EPC project.

Frequently Asked Questions

How many solar EPC proposals should a business compare?

There is no fixed number, but businesses should compare enough technically qualified proposals to understand the market range. The offers must first be aligned for capacity, equipment, generation assumptions and included scope.

Is the cheapest solar EPC proposal usually the best option?

No. A lower price may result from weaker equipment, incomplete civil work, excluded approvals or limited maintenance support. Compare total scope and lifecycle value before price.

Should a solar EPC contractor guarantee electricity savings?

Savings depend on solar generation, actual consumption and future electricity tariffs. Contractors can support generation and performance assumptions, but savings projections should clearly state variables outside their control.

What is the difference between an equipment warranty and an EPC warranty?

An equipment warranty is provided for a specific product, such as a module or inverter. EPC obligations cover the contractor’s design, installation, workmanship and delivery responsibilities as defined in the contract.

Can the final project cost change after the EPC proposal is accepted?

It can change when the proposal contains provisional sums, unresolved site conditions or client-approved variations. A detailed site assessment and clearly defined exclusions reduce this risk.

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