Financial Audits for Solar Companies

Solar & Renewable Energy Financial Audit Service

Our solar audits provide your business with the financial transparency it needs to ensure accurate reporting and compliance. Solar projects involve significant investments and complex financial structures, and we’re here to help you navigate these complexities. Our audits will give you the peace of mind that your finances are accurate and compliant, allowing you to focus on the growth of your solar business.

Does your business need an audit?

Companies are required to have an audit if any two of the following criteria are met:

• Turnover of more than £15m
• Gross Assets of more than £7.5m
• 50 or more employees

 The audit thresholds are changing for financial years beginning on or after 1 October 2024. The new thresholds are as follows:

• Turnover of more than £15m
• Gross Assets of more than £7.5m
• 50 or more employees

Find out more below on how we can help audit your solar business.

How It Works

What You Get

Tailored Pricing to Meet Your Needs

We understand that every business has unique financial requirements. Our pricing is tailored based on the specific services you need to achieve audit readiness and financial clarity. Contact us to discuss a customised pricing plan that fits your business.

Want to learn more?

Get in touch with our in house expert Chris Morey to see how we can help.

What are Solar Energy Audits in the Solar Energy Audit Industry

Our solar and renewable energy financial audits provide your business with the financial transparency it needs to ensure accurate reporting and compliance. Solar projects involve significant investments and complex financial structures, and assessing energy usage is to identify consumption patterns and inefficiencies. Our audits will give you the peace of mind that your finances are accurate and compliant, allowing you to focus on the growth of your solar business.

Audits For Solar & Renewable Energy Companies

Solar and renewable energy companies in the UK need financial audits to ensure transparency and accuracy in their financial reporting. The sector is complex and changing fast with ever changing regulations and technology.

Investment in renewable energy is growing as the UK moves towards net zero. Government backed incentives like Feed-in Tariffs (FIT) and Renewable Electricity Guarantees of Origin (REGO) are key to investment.

Carbon reduction efforts are supported by these investments as the decarbonisation targets get tighter. Audits help companies identify where they can further reduce emissions by implementing new technologies like solar panels and heat pumps.

Financial audits also look at the risk landscape of the renewable energy sector. This includes the financial risks associated with new technologies and the energy market. They also look at the financials and timelines of solar installations to ensure projects are commercially viable and on time.

Auditors need to be familiar with the financial models used by renewable energy companies. This means projecting cash flows from renewable installations and calculating returns on investment over the life of the project.

Audits ensure the financial statements of these companies reflect the reality of their operations and expenses. They help verify the income from renewable energy sources is correctly recorded and assets like solar farms or wind turbines are valued correctly.

Thorough audits are also key to attracting future investment. Clear financial reporting builds investor confidence and opens the door to further funding in the UK renewable energy sector.

Audits in the renewable energy sector

In the renewable energy sector audits are key to integrity and transparency. They ensure compliance to established standards and detect misreports or fraud so financial and operational interests are protected.

Misreporting and Fraud

Financial audits detect misreporting and fraud by reviewing financial statements. Statistically driven audit programmes are used to provide evidence based assessments.

By reviewing financial data and other supporting evidence auditors can detect discrepancies or anomalies that may indicate fraud. These findings are important to maintain investor confidence and company financial health.

Audits reduce the risk of fraud, provide insight into vulnerabilities and recommend corrective actions. This protects assets and supports growth in the renewable energy sector.

Audit Procedures for Renewable Energy Companies

In the UK auditing renewable energy companies involves a series of steps to ensure financial integrity and regulatory compliance. The audit process involves preparation, execution and reporting and each stage requires attention to industry specific details.

Preparation and Planning

Preparation is key to setting the audit trail. During this stage auditors will familiarise themselves with the Renewables and CHP Register and industry information. They will also review the company’s internal controls and risk factors.

Auditors produce a preliminary audit programme outlining the procedures and timelines. This stage involves gathering initial supporting evidence such as contracts, financial statements and regulatory filings. Good preparation will allow the audit team to identify potential issues early.

Audit Execution

During the execution stage auditors will verify financial records and compliance documents in detail. They will confirm revenue recognition for schemes such as Feed-in Tariffs and Renewable Obligation Certificates. Auditors will review transactions to ensure they meet industry standards and regulatory requirements.

Besides financial and compliance checks auditors will assess the performance of the solar power system to ensure it meets the expected efficiency and productivity standards.

They will also check compliance to environmental regulations. Auditors will review documentation for reimbursement claims to prevent overpayment. This stage may involve physical site visit to verify renewable energy generation and Supporting Evidence submitted by the company.

Reporting and Correction

After the audit is completed the findings will be compiled into a detailed report. The report will show compliance to regulations and any discrepancies or potential claw back scenarios. Auditors will recommend corrective actions.

Management will then address the issues identified, with follow up audits to ensure corrective actions are implemented. This will give stakeholders confidence in the company’s financial integrity and transparency.

Ofgem in Renewable Energy Auditing

Ofgem has a key role in auditing renewable energy companies in the UK. As the regulator they ensure the schemes such as Renewables Obligation (RO), Renewable Electricity Guarantees of Origin (REGO) and Feed-in Tariffs (FIT) are operated and complied with.

Ofgem conducts regular audit programmes to verify compliance to these schemes. These audits will check that generators are only getting the support and benefits when they meet the set criteria. Compliance is critical to maintain integrity and trust in the renewable energy sector.

Non compliance issues found during audits can have serious consequences. This can include claw back of payments or even withdrawal from the scheme. This shows how seriously Ofgem takes non compliance.

Through these audits Ofgem protects the financial interest of renewable energy initiatives and ensures the sustainability objectives of the UK. The annual audit programme maintains transparency and accountability across the sector and gives confidence to stakeholders..