Milestone-based co-development: development is paid for as the project advances
In the co-development of solar, agrivoltaic and BESS projects in Italy, the developer's fee is tied to the success of the deal. Here is how it works and who signs what.
What co-development is
Co-development is an agreement between an investor and a developer to take one or more projects from greenfield to RTB. The investor funds development and acquires the result; the developer brings technical expertise, local relationships and the day-to-day work on land, grid connection and permits.
The difference from time-based consultancy lies in the fee: in a co-development it is split into instalments, and each instalment falls due when the project reaches a milestone, a stage that can be verified.
Examples of milestones
Milestones are decided by investor and developer in the agreement. The ones below are common examples, in the order a project usually meets them.
Greenfield
A site is identified and screened for constraints, land use and distance from the grid.
Land secured
Option, preliminary surface-right or purchase agreement signed with the owner.
Grid connection
Connection request filed and the grid operator's solution accepted.
Application filed
Final design and studies submitted under the applicable permitting route.
Permit granted
The authorisation is issued and the appeal period is monitored.
RTB
Permit, grid connection and land rights in place: the project is ready to build.
If a stage is not reached, the fee tied to it does not fall due. That is what success-based means: the investor pays for results, and the developer is rewarded at every step that brings the project closer to construction.
Who signs the agreement
The co-development agreement is signed by the investor directly with the developer. greenfield.solar is not a party to it: ours is an advisory role, in the service of investors and developers, governed by a separate engagement.
What is worth defining before signing
- Scope. Which projects, which technologies, which parts of Italy, with or without exclusivity.
- Milestones. What they are, when each counts as reached, and which documents prove it.
- Development costs. Who advances connection fees, specialist studies and payments to landowners.
- The vehicle. Which company holds agreements, applications and permits, and how they pass to the investor.
- Exit. What happens if a project stalls or one party wants to stop.
These are points to work through with your own lawyers. We help the parties come to the table with aligned expectations.
Why it works for both sides
For the investor
You come into projects from the start, without paying the premium of a finished RTB, and tie spending to results. Your counterpart is motivated to close every stage. What we do for investors.
For the developer
You do not have to carry years of costs alone before seeing a return, and your work is rewarded along the way. What we do for developers.
Questions on co-development
How much is the developer paid at each milestone?
It depends on technology, size, area and starting stage: investor and developer set it in the agreement. We do not publish figures on this site.
What happens if the project does not obtain its permit?
The fee tied to that milestone does not fall due. How costs already incurred are handled is governed by the co-development agreement.
Does co-development apply to agrivoltaics and BESS too?
Yes. The structure is the same for solar PV, agrivoltaic and BESS projects; the most suitable milestones change.
Does greenfield.solar sign the co-development agreement?
No. Investor and developer sign it, directly.
Tell us about the project you want developed
Message us on WhatsApp or fill in the form: technology, indicative size and the Italian regions you are interested in are enough to start. From Italy you can also call toll-free.