The dynamic realm of energy projects is governed by key milestones that determine how a project moves from concept to completion. Two of the most critical are Notice to Proceed (NTP) and Commercial Operation Date (COD). Each serves a unique purpose and carries major implications for timelines, contracts, and financial success in renewable energy—especially in solar.
Starting an energy project without understanding NTP and COD is like navigating without a compass. These milestones are not just bureaucratic checkpoints—they’re the foundation of project success.
When a Notice to Proceed (NTP) is issued, it’s not just a ceremonial “green light.” It’s the official moment when the project shifts from design and planning into execution. Think of it as the heartbeat that sets the rhythm for everything that follows.
NTP is the trigger that activates construction schedules. From site preparation and structural framing to electrical work and system integration, every phase begins moving once the NTP is granted. Contractors can mobilize crews, materials can be ordered, and the project officially enters its build phase.
NTP also carries legal weight. Contracts usually outline specific conditions that must be met before NTP is issued—such as securing permits, finalizing financing, or completing site assessments. Once the notice is given, it sets off a chain of obligations for contractors, subcontractors, and suppliers. Everyone now has fixed responsibilities, timelines, and deliverables.
Sometimes, people confuse NTP with RTB (Ready-to-Build). While they’re related, they’re not the same.
If NTP is the starting gun, COD (Commercial Operation Date) is the finish line. It’s the point at which a renewable energy project is considered complete, tested, and fully operational. For solar developers, reaching COD means the system is now generating electricity and feeding it into the grid.
COD signals that all infrastructure is in place and functioning—solar panels are installed, inverters are working, electrical systems are tested, and the facility has passed safety and performance checks. Once connected to the grid, the project officially contributes to the energy supply.
COD isn’t just technical—it’s financial. At COD:
For developers, reaching COD often represents years of work finally paying off.
When we zoom in on solar projects, COD takes on a very specific meaning. Getting to this milestone involves:
Only when all of these steps are completed can the solar farm be declared operational and achieve COD.
Beyond individual projects, COD has broader implications in today’s energy landscape.
In short, COD doesn’t just mark the completion of a project—it reinforces the industry’s momentum toward cleaner, more resilient energy systems.
Take the example of a large solar farm preparing to break ground. When the developer issues NTP, construction crews mobilize, equipment arrives, and the first foundations are laid. The project moves from paper to physical reality. Within weeks, what was once a plan becomes a visible site buzzing with activity.
Now, picture the same project months later. After panels are installed and systems are tested, the project reaches COD. At this point, the solar array is officially declared operational. The system starts feeding clean electricity into the grid, revenue streams are activated, and the project begins delivering on its environmental promise.
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What is NTP in renewables?
NTP (Notice to Proceed) is the formal approval to start construction. It turns a project from planning mode into execution mode, with legal and contractual commitments kicking in.
What is COD in solar?
COD (Commercial Operation Date) marks the point when a solar project is completed, tested, grid-connected, and officially operational. It’s when the system starts producing electricity for sale.
What is a PPA in solar?
A Power Purchase Agreement (PPA) is a long-term contract—typically 10 to 20 years—between a solar developer and an energy buyer. The developer owns and operates the system, while the buyer pays for the electricity at an agreed rate.
What does COD mean in a PPA?
In this context, COD is the date when the solar system begins commercial operation under the PPA. From that moment, the buyer starts paying for billable electricity.
What is RTB in solar?
RTB (Ready-to-Build) means all pre-construction requirements—like permits, financing, and designs—are complete. It signals that a project is fully prepared for construction, but NTP is still needed to begin work.
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From NTP, which kicks off construction, to COD, which declares a project operational, these milestones shape every stage of a solar project’s lifecycle. They aren’t just technical steps—they define when projects start, when they finish, and when they begin generating both energy and revenue.
For solar professionals, managing these milestones effectively requires precision and streamlined workflows. That’s where solar design software like ARKA 360 makes a difference—helping teams plan smarter, design with accuracy, and move projects from blueprint to COD with confidence.
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