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Energy Strategy & Market Analysis

The conflict in 'independent' engineering

Scott GreenbergMay 5, 20262 min read

"Independent" is one of the most-used and least-defined words in energy consulting. It is worth being precise about what it should mean, because the difference is not philosophical — it shows up in the advice.

An advisor is independent only if their economics do not change based on what you decide. Most of the time, something is attached.

The usual attachments

  • Equipment. If the advisor sells modules, inverters, racking, or storage, their recommendation has a product behind it.
  • Development. If the advisor also develops projects, they compete with you for sites, for interconnection capacity, and sometimes for the same offtake.
  • EPC or construction. If the firm builds, a recommendation that reduces construction scope reduces its own revenue.
  • Referral relationships. If a preferred vendor pays for introductions, the shortlist is not a shortlist.

None of these are automatically corrupt. They are conflicts. Conflict is the normal condition of a market where the same firms do several things. The point is that a conflict has to be disclosed and managed, or the advice is compromised whether anyone intended it or not.

Why lenders and investors care

Independent engineering carries real weight with tax equity and lenders precisely because the report is meant to be disinterested. If the engineer has a stake in the project closing — or in a particular equipment choice — the report's function is undermined. That is why independence is a diligence question, not a marketing line.

How to test it

You can find out a lot by asking a few direct questions before you engage anyone:

  • What do you sell besides advice?
  • Do you develop projects that would compete with mine?
  • Do you earn a margin on any equipment or construction in this project?
  • Who referred me, and does that party benefit if I hire you?
  • Would you get paid the same if you told me not to build?

The last question is the real test. If the answer is no, you are not buying advice. You are buying a recommendation that has already been made.

Where we sit

Best Energy Partners does not sell equipment, does not develop projects, and does not build. The only thing we are paid for is the quality of the decision our clients make. That is a structural position, not a claim of virtue — and it is the reason we can tell a client to walk away from a project we could otherwise bill more hours on.

Independence is not what we say about ourselves. It is what our economics allow. Ask any advisor what theirs allow.

Working through something like this on a live portfolio?