Solar Landscape’s Diligence Guide to Getting Your Solar Projects Right

As the federal Investment Tax Credit (ITC) is set to expire in July 2026, there’s growing urgency to get solar projects built, and to ensure they are built correctly. Too often, projects stall or fail because of avoidable missteps that waste time, erode internal support, or miss critical deadlines. This is the final window to capture the ITC, and pressure to deploy solar across real estate assets has never been higher.

This blog examines common causes of project failures and concrete steps that real estate sustainability leaders can take to ensure that projects are built on time with quality top of mind. You can download the complete diligence checklist of questions to ask developers here.

1. Proposal Due Diligence

Common challenge: Inflated proposal pricing leads to re-trades or deal breakdown.

We begin with the proposal stage, where projects and relationships can stumble at the start. Initial proposals often offer high lease payments, but if the assumptions behind them aren’t realistic, those numbers won’t hold.

Developers might build in full value from Investment Tax Credit (ITC) adders such as the energy community adders or the low-income adder to show a more attractive lease rate, but if those adders aren’t guaranteed, or if the project doesn’t qualify, economics fall apart. Developers might also make unrealistic cost assumptions for interconnection or EPC that allows them to offer a high initial lease rate, but will ultimately require them to re-trade their offer later when costs come in higher than anticipated. This gap between initial offer and final proposal can erode internal support and kill projects before development starts.

Ask: Which adders are assumed? What costs are included?

2. Program Award

Common challenge: Missing award submission windows or failing to successfully submit awards into state programs.

The program award stage, when states decide which projects to accept, is another common stumbling point. These windows often open and close quickly, sometimes only once a year. The developers who win consistently are the ones who already understand how each program works: how projects are scored, what the state prioritizes, and what resonates with evaluation committees.

A competitive discount rate, a thoughtful community engagement plan, and a strong track record in that specific program can make all the difference. Without an organized submission process or a proven success rate, developers risk missing the window entirely, potentially delaying the project until the next round, often a full year later.

Ask: How many projects have you been awarded in this market?

3. Safe Harbor Strategy and Securing the 30% ITC

Common challenge: Improper safe harbor strategy, leading to forfeited ITC eligibility. 

The most important step in any project right now is securing the full 30% Investment Tax Credit before the July 4, 2026 begin construction deadline. To do this, developers need two things: a sound strategy and the ability to execute. Without experienced tax counsel or EPC partners capable of performing offsite work, developers risk missing “begin construction” deadlines and losing access to incentives, which could reduce lease payments for hosts.

Safe Harbor is not just a compliance step but a competitive advantage. Getting it right can create millions of dollars in value. Getting it wrong can delay or even derail a project’s financial viability.

Ask early: What is your safe harbor strategy and approach? Who are your EPC partners?

4. Interconnection and Utility Process

Common challenge: Interconnection cost surprises and utility-driven delays.

A critical part of successful solar development is navigating the utility process, particularly assessing interconnection feasibility and building strong, productive relationships with utilities.

A project’s viability depends on whether the local grid can handle new capacity and at what cost. Before committing to a bid or lease rate, it’s essential to understand the technical feasibility, expected upgrade costs, and interconnection timeline. Utilities each have their own programs, processes, and personalities; developers without strong relationships and a proven track record with the local utility are more likely to encounter setbacks.

Ask: What’s your relationship with the local utility? How many projects do you have active there?

5. Financing

Common challenge: Unfinanceable leases or overextended capital.

No matter how great a project looks on paper, it won’t get built until financing closes. That means project economics must be solid, documentation meets lender standards, and all incentives are in place. The most dependable partners can demonstrate that the capital they raise truly supports building, interconnecting, and operating new rooftop projects.

The financeability of the lease itself is also critical. Sometimes leases look great on the surface, but if they’re missing key terms like interruption loss coverage, termination schedules, or SNDAs, they won’t pass a lender’s diligence review. That means a seemingly greenlit project can fall apart at the financing stage, causing delays or cancellations.

Ask: How much of your raised capital goes toward building new projects? Are your leases financeable as written?

6. Equipment & Procurement

Common challenge: Low-quality or noncompliant equipment.

Cutting corners on equipment might make a project cheaper upfront, but it can lead to downtime, higher maintenance costs, and ultimately dissatisfied tenants or asset managers down the line. With today’s supply chain challenges, including FEOC (Foreign Entity of Concern) restrictions, tariffs and equipment shortages, having the right partners matters more than ever.

Not all inverters or modules perform the same, and supply chain issues can delay or derail construction. Developers with established, scalable relationships can secure compliant equipment at competitive prices and ensure on-time delivery, even when the market tightens.

Ask: Do you have a supplier relationship that can provide consistent, competitive panel pricing and allow you to navigate FEOC and other tariffs?

7. Construction

Common challenge: Safety incidents or tenant disruption.

Once the equipment is ready, the construction phase begins, and for CRE owners, it is where the tenant relationship is most at risk if not handled carefully. The best developers have well-defined, field-tested safety programs and quality assurance and control procedures that extend to their subcontractors.

Even with a perfect construction plan, poor communication with tenants can cause access issues, noise complaints, parking disruptions, or delayed approvals. Developers who proactively engage property managers and tenants early, and maintain consistent communication, complete projects faster with happier tenants and fewer post-construction issues.

Ask: What is your safety record? How do you plan to minimize tenant disruption?

8. Roof Care & Installation Flexibility

Common challenge: Roof damage or inflexible layouts.

For most building owners, this is the heart of the matter: protecting the roof and ensuring the solar installation adds value without creating long-term headaches.

Roof leaks, whether caused by solar or not, can be costly and disruptive, especially when tenants are affected. The most reliable developers include standing provisions or even have dedicated maintenance teams on standby to diagnose and repair any leak issues quickly. A well-designed system accounts for the future, like adding HVAC units, other RTUs, or rooftop equipment years down the line. If a solar array isn’t installed with flexibility in mind, panel removal or relocation can be difficult and expensive later.

Ask: Will the system account for future rooftop equipment or easy repairs? Who is responsible for repairs?

9. Long-Term Ownership

Common challenge: Rapid asset value decline and subscriber churn.

As important as construction and commissioning are, the true measure of a solar project’s success is in how it’s built, managed, and maintained for years after it goes live.

When projects are sold to third-party owners, the focus often shifts to minimizing upfront costs rather than ensuring long-term quality. Over time, those compromises can erode system performance and asset value.

For community solar projects, maintaining full subscribership is essential to meet program requirements and preserve incentives. When subscriber management is outsourced, service quality can suffer, increasing customer churn and diminishing community trust.

Ask: If you plan to hand the project off to a different owner, what assurances can you offer that the system will continue to produce as you’ve noted in the proposal?

10. Operations & Maintenance

Common challenge: Poor monitoring and slow response times.

Once a project is operational, the focus shifts to performance and reliability. Even the best-built systems need consistent monitoring and proactive maintenance to deliver on expected returns and uptime. A strong in-house asset management team tracks data daily, so energy production and cash flows stay predictable.

Solar doesn’t require constant attention, but it does require the right response protocols when something goes wrong. Well-run programs have clear communication channels between asset managers, property owners, and maintenance crews. Without that coordination, even minor problems can grow into major operational or tenant challenges.

Ask: How do you monitor system performance? What’s your process for maintenance dispatch?

Closing Thought

Each of these steps, from due diligence and financing to construction, roof care, and long-term operations, has presented a clear theme: you don’t need to be an expert in every detail to lead successful solar projects. What matters is knowing what to ask, what to look for, and how to identify the partners who bring transparency, consistency, and accountability.

Solar can be transformative for portfolios. It can boost NOI, help meet ESG goals, and strengthen community relationships, but only if the projects are built right, managed well, and designed with the property and its tenants in mind.

As industry leaders, your power comes from curiosity and confidence:

• Asking the right questions.
• Expecting clear, realistic answers.
• Partnering with teams that match your standards and share your long-term vision.

Download the 20 Most Important Questions to Ask Developers

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