Solar due diligence in Italy: what investors review

Whose due diligence is it

Due diligence belongs to the investor and to its advisors: lawyers, technical consultants, tax advisors and, where relevant, lenders' advisors. Pipeline.Solar does not perform the investor's due diligence. It carries out a preliminary screening of the data received from project owners, registers each project with standard fields, and makes the documents available in the data room after an NDA has been signed.

This division matters. The screening helps investors avoid spending time on projects that clearly do not fit; the due diligence is what supports an investment decision and the contractual protections that follow. Findings typically feed into representations, conditions precedent and price adjustments in the final agreement.

Legal and corporate due diligence

For a share deal, the review covers the project company: incorporation documents, shareholders, powers, existing contracts, debts, security interests, litigation and compliance. For an asset deal, it focuses on the assets being transferred and on whether titles, connection rights and contracts can be assigned, and with which consents.

Typical questions include: who holds the authorisation and the STMG, whether there are encumbrances on the shares or assets, whether development and co-development agreements contain success fees or change-of-control clauses, and whether any third party holds pre-emption rights.

Permitting due diligence

The permit review checks that the project holds the correct title under the regimes of Legislative Decree 190/2024 (free activity, PAS or AU), that the title is effective, and that no appeals are pending. It also covers environmental steps such as VIA or screening where they apply, prescriptions attached to the title, deadlines for starting and completing works, and consistency with the rules on suitable areas and, for agricultural land, Decree-Law 63/2024. See PAS and AU solar permitting.

Grid connection due diligence

The connection review starts from the STMG issued by Terna or the distributor and the proof of its acceptance under the TICA rules. Advisors check payments made, deadlines still open, the scope of network works and whether they are authorised, shared works with other producers, and consistency between the connection capacity and the authorised layout. The estimated days to connection in the teaser are compared with the documents. See STMG and TICA explained and grid connection timeline.

Land due diligence

Land is checked for title, encumbrances and coverage. Where the project relies on a surface right (diritto di superficie, articles 952 and following of the Civil Code), advisors review duration, registration, renewal and termination clauses, and whether the connection route and access roads are covered. Options are checked for validity and exercise conditions. See solar land lease vs purchase.

Technical due diligence

The technical review covers the design, the yield assessment and its assumptions, the suitability of the site (geotechnics, hydrology, shading, access), the consistency of the layout with the permit, and the expected CAPEX. For built plants, it extends to construction quality, test reports and, at COD, production data and O&M performance. For storage and hybrid projects, it includes the specific requirements of the BESS component.

Tax and financial due diligence

The tax review looks at the project company's position in a share deal, at the taxes triggered by an asset transfer, and at local taxes linked to the plant and the land. The financial review checks development costs incurred, liabilities, and the assumptions behind any business plan provided by the seller, including revenue schemes such as PPA or FER X.

Starting due diligence through Pipeline.Solar

The scope of the review changes with the stage. For a greenfield co-development, much of the work is done milestone by milestone, as each document is produced. For an RTB project, the review concentrates on the three pillars of permit, connection and land, and on whether they transfer cleanly. For brownfield and COD assets, technical and contractual checks on the built plant carry more weight.

Many investors also run a short internal pre-review on the teaser before engaging external advisors. The standard fields (capacity, STMG cost, estimated days to connection, land terms, development cost, PAS filed and PAS approved) are designed to support exactly that first pass, so that advisor time is spent on projects that already match the mandate.

The path is simple: you set your stages, regions and capacity range per single plant; you receive a teaser when a project fits; if interested you sign the NDA, and where provided a scouting agreement; you access the data room and your advisors start their review; you negotiate directly with the owner. To begin, request investor access or write on WhatsApp. Opportunities depend on the projects available at the time.