Frequently asked questions (FAQ)
At BioInversiones we do promote unrestricted transparency to investors. Therefore, there's an open answer for each relevant question.
Is there a risk concerning the solar yield?
BioInversiones already made a safety downgrading in the computation of the profitability of the plant in relation to the average sun exposure at the location. Thus rather upward yields will occur. In addition, there’s an insurance which covers the risk of unusually low sun exposure (see also the topic insurance).
Against which risks is the plant insured?
The insurance that BioInversiones has negotiated is locked to cover all risks, including fire, storm, hail, thunderbolt, theft, vandalism and flood. The insurance covers not only the direct correction at the plant, but also eventually losses of earnings up to the correction. Likewise the insurance is locked against low sun exposure, which adjusts in unusually sun-poor years possible losses of earnings.
What happens, if the plant does not supply the prognosticated yield?
If the decrease of production would be caused by bad or incorrect equipment components, then extensive warranties of the manufacturer exist. Solar modules have a warranty of 25 years (80% of the efficiency), metallic structures over 25 years and inverters over 5 years. The costs of incorrect components outside of the guarantee period are considered by an anticipated payment in the cash flow calculation.
Is there a scheduled payment calendar?
Yes, it is. Here are the regular payment milestones:
- Contract signature
- Connection point guaranteed
- Licenses granted
- End of civil works
- End of the execution works
- PV Plant connected to the grid
Please notice that VAT is applied and this amount must be financed by the investor for a certain period.
What happens if the PV Plant cannot be established due to permission problems?
The investor would directly receive back payment #2. The remaining capital is kept for the preparation of a comparable alternative project. This capital would be paid back in case that BioInversiones doesn’t succeed on obtaining permissions of an alternative project within a year starting from last payment date.
Is there a limit concerning to the quantity of electricity that can be sold?
No. All kilowatt-hours of electricity produced by the solar power station must be purchased by the delegated Public Institution.
How does function the current operations of the plant?
BioInversiones is responsible for the operations and maintenance of the power plant. This covers the regular cleaning, preventive maintenance, eventual repairs, security, and the accounting of the current energy sold to the Utility.
Are you thinking in PV investments? Please contact us for further assistance.