Renewable Energy
Solar EPC Contractors
Performance, advance payment, and warranty security for solar engineering, procurement, and construction contractors.
Industry overview
Solar EPC contractors design and build rooftop, ground-mount, and utility-scale photovoltaic systems, covering civil works, mounting structures, modules, inverters, and grid interconnection.
EPC contracts almost always require performance security for the construction period, advance payment security for mobilisation and equipment procurement, and warranty or defects liability security covering the plant after provisional acceptance.
Because equipment supply is a large part of the contract value, advance payment security frequently sits alongside the performance bond and reduces as milestones are certified.
Typical surety bonds
Typical documentary requirements
- Accomplished bond application with obligee and contract details
- SEC or DTI registration, Articles of Incorporation, and business permit
- BIR Certificate of Registration and latest income tax return with filing proof
- Audited financial statements for the last two to three years
- Valid government IDs of signatories plus board or partnership authority
- Copy of the obligee's exact bond requirement or prescribed wording
- EPC contract or letter of award
- Equipment supply schedule and procurement plan
- Project completion schedule and milestone plan
- PCAB licence and relevant electrical works accreditation
Documentary requirements vary depending on the issuing insurance company and the specific transaction. The list above reflects what is commonly requested, not a fixed rule.
Typical application process
- 1Application
- 2Document submission
- 3Review
- 4Insurer evaluation
- 5Quotation
- 6Payment
- 7Bond issuance
Frequently asked questions
Which bonds appear most often in solar EPC contracts?
Performance security during construction, advance payment security for down payments, and warranty security covering the defects liability period after acceptance.
How long does warranty security usually run?
It follows the defects liability period agreed in the EPC contract, commonly one to two years after provisional acceptance. The contract governs.
Is the advance payment bond reduced as work progresses?
Advance payment security is typically issued for the full advance and recouped against progress billings, with reductions processed through endorsements when the contract allows.
Do rooftop projects also require bonds?
Commercial and industrial rooftop contracts often require performance and warranty security, though smaller private projects may not. The client's contract determines this.
Questions we frequently receive from Solar EPC Contractors
Can a newly established company obtain a surety bond?
Applications from newly registered companies are accepted for evaluation. Underwriters usually look at opening financial statements, capitalisation, the experience of the principals, and the nature of the obligation. Some insurers ask for collateral or indemnity support where trading history is short. Approval rests with the issuing insurance company.
Can several projects or transactions be covered at the same time?
Companies with recurring requirements often ask for a surety line so individual bonds are issued against an approved aggregate limit. Whether a line is granted, and its size, is determined by the insurer after reviewing financial capacity and existing exposure.
Do banks require the same documents as surety companies?
There is overlap - registration papers, financial statements, and tax filings - but the assessment differs. Banks focus on cash cover and credit facilities, while surety underwriters look at the obligation, experience, and capacity to perform. Document lists vary per institution.
Can financial statements from the previous year be used?
Insurers generally require the latest audited financial statements. Where a new audit is not yet available, some accept the prior year's audited statements together with recent interim statements. Acceptance varies among insurers.
How can approval chances be improved?
Submit a complete file at first endorsement, keep audited statements current, disclose existing bond exposure, and provide the obligee's exact bond wording. Complete and consistent documents reduce clarifications, but they do not guarantee approval.
Can an application be expedited?
Urgent submissions are commonly accommodated, and complete files move fastest. Actual turnaround still depends on the insurer's evaluation and any additional requirements raised, so no processing time is guaranteed.
Can collateral sometimes be waived?
Collateral practice varies by insurer, bond type, amount, and the applicant's financial standing. Some submissions are approved on financial strength alone; others require collateral or an indemnity agreement. Only the issuing insurance company can decide.
Related knowledge articles
Related bond products
Bid Bond
Bid security for government and private tenders.
Performance Bond
Performance security posted after award.
Advance Payment Bond
Security for mobilisation or advance payments.
Warranty Bond
Covers defects during the warranty period.
Customs Bond
Bureau of Customs undertakings for importers and brokers.
Judicial Bond
Court bonds used in litigation and appeals.
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Start your application
Send us the obligee's bond requirement and we will advise the documents needed for your transaction.
SuretyPH is a digital information and lead-generation platform owned and operated by McMatthise Global Group Corporation. It does not independently underwrite, approve, bind, issue, or guarantee any insurance policy or surety bond. Evaluation, underwriting, premiums, approval, and issuance remain the responsibility of the relevant duly licensed insurance company.