Solar projects are more than thirteen times more likely to chronically underperform their initial production forecasts. This fact uncovered in the 2021 kWh Analytics Solar Risk Assessment underscores the critical challenges that growing solar portfolios (and their owners) are facing.

Entrusted with the long-term results of solar facilities, Operations and Maintenance (O&M) and Asset Management companies know their likelihood of success is often set before they get to work, before the last interconnection is made, and even before the final contract is signed.

Using research across the industry and experience operating 4 gigawatts (and growing) of utility-scale solar assets, Origis Services has three key learnings to share with financiers, developers, and owners who want to better estimate the true cost of solar O&M.

Tip 1: Include Optimal Levels of Corrective Maintenance in Service Contracts

Analyzing data from more than two gigawatts of utility scale solar facilities, Origis Services discovered the most effective way for asset owners to reduce overall O&M costs: including roughly 70% of corrective maintenance into the annual service fee contract. Corrective maintenance—which is the repair and replacement of faulty inverters, PV modules, and other equipment—is an inevitable expense in operating solar assets, and yet all too often piecemeal O&M contracts exclude it.

Focused on maintenance costs for 75MW and 150MW systems, this analysis showed that asset owners can spend nearly 30% more than they expected to fill the gap. Instead of paying high-priced, dispatched services, O&M that includes the corrective maintenance “sweet spot” of 70% can plan for and more cost effectively respond to inevitable equipment failure.

Tip 2: Invite O&M Service Providers to Review Early Asset Contracts

According to kWh Analytics CEO Richard Matsui, “there is a one in eight chance that [solar] assets will be a chronic underachiever.” Although an experienced O&M provider such as Origis Services can be a great partner in reducing risk and optimizing solar asset performance, even we are limited by the terms from upstream contracts.

Are the inverters and solar panels protected by warrantees? What specific components are covered and for how long? Are there service-level agreements that ensure response times and remedies? What insurance products are available to fill the gaps?

With clean energy technology so rapidly evolving, it’s not unlikely that asset owners will discover their strategically invested equipment in the field is several generations out of date and no longer supported by the manufacturer. That where’s clear and comprehensive upstream contracts save the bottom line.

Getting an experienced O&M provider to review solar asset contracts up front and to ensure the terms match ongoing operational services and risks is a critical way to reduce unforeseen expense.