What a buyer or lender is really testing
Due diligence on a PPA asks whether the revenue the project expects is as reliable as the financial model assumes. Reviewers look at the creditworthiness of the party buying the power and what security backs its obligations. They also study how the agreement allocates curtailment, delays in reaching commercial operation, and changes in law, since those clauses decide who absorbs losses when conditions shift. Termination rights and the payments owed on early termination often receive the most attention. Assignment provisions matter too, because financing usually depends on the agreement being collaterally assigned to lenders, which often needs the buyer's consent.
Documents beyond the agreement itself
A PPA rarely stands alone. Reviewers also look at the interconnection agreement and queue position, site control documents such as leases or easements, permits, and the equipment and construction contracts. If the project relies on tax credits or their transfer, that structure gets separate attention, since federal energy tax rules have changed and some benefits depend on when construction began. Amendments, side letters, and any notices of default or force majeure belong in the data room. Missing consents are among the more common gaps, and they are easier to obtain before closing than after.
Turning findings into deal terms
Diligence findings usually end up in the transaction documents rather than in a report that sits on a shelf. A weak point can lead to a price adjustment, a specific indemnity, a condition to closing, or a request that the power buyer sign an estoppel or consent. In our first conversation we learn your role in the deal, the timetable, and which risks matter most to you, since a tax equity investor and a project buyer read the same PPA differently. We then focus the review on those provisions. For projects in New York, state programs and utility requirements can add their own layer, and we flag where that applies.
