Episode S19 · Ep 979 October 27, 2026 28 min 49s

979: The Scariest Question in Solar Finance: What If Your EPC Fails? | Gage Kellogg

Lenders spook easily. And for good reason.

Their job is to protect capital, so a solar project can have solid economics, proven technology, and an EPC that knows how to build it, yet still hit a financing wall if the lender isn’t convinced the project will reach commercial operation when something goes wrong.

That’s the nightmare Gage Kellogg, Managing Director of Renewable Energy at Partner Engineering & Science, helps us unpack in this Halloween-special Tactical Tuesday.

What happens if the EPC fails halfway through construction? Who keeps the subcontractors on site? Who funds the remaining work? And does having a performance bond actually mean someone is ready to finish the project?

Gage has spent more than two decades across development, project finance, construction, surety, and independent engineering. He explains the warning signs that show up before contractor failure, why a stalled project can become more expensive by the day, and how Partner’s Completion Commitment and SureBuild address different layers of completion risk.

Expect to learn:

🔹 Why a technically capable EPC can still create a bankability problem

🔹 What a performance bond does, and what it may not solve

🔹 What needs to happen immediately when an EPC fails

🔹 How contractor default and borrower default create two different risks

If you’re developing, financing, or building solar and storage projects, this is one scary scenario worth solving before financial close.

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(00:00) The Solar Construction Risk Dilemma

(03:16) How Construction Completion Agreements Work

(04:35) Navigating Market Volatility on the Solar Coaster

(06:06) Limitations of Traditional EPC De-Risking Tools

(07:49) The Hidden Traps of Surety Bond Indemnification

(09:31) Why Performance Bonds Do Not Guarantee Completion

(10:50) Early Warning Signs of Solar Contractor Distress