For organizations that rely on solar energy to reduce utility costs, summer is the most important time of year. Electricity rates are typically highest during the hottest months, and solar production is also at its peak. When solar systems perform as expected, this is when they deliver the largest portion of their annual financial benefits. But every year we encounter the same issue across many solar portfolios:
Solar systems that are partially or totally offline without the owner realizing it.
In some cases, systems have been underperforming for months—or even years. As we approach another high-value summer production season, now is the right time to ask a simple question: Is your solar fully operational?
Many organizations assume that if their solar system is installed and connected, it must be operating correctly. Unfortunately, that assumption is often wrong. Commercial-scale solar PV systems are complex assets that include an array of sub-components including:
• Modules
• Inverters
• Breakers
• Fuses
• Wiring
• Trackers / mechanical systems
• And more
Failures in any one of these components can reduce production—or stop it entirely. Because monitoring systems are not always configured correctly, these problems regularly go unnoticed.
Common issues we regularly encounter include:
• Inverters offline
• Tracker systems not tracking
• Entire plants offline
In many cases, the system owner simply continues paying higher utility bills without realizing something is wrong.
If solar underperforms in the summer, the consequences are far more significant than other times of the year. That’s because:
• Solar production peaks during summer months
• Electricity rates are often highest during summer peak periods
• Demand charges and time-of-use pricing amplify the value of summer solar generation
For many commercial-scale solar facilities, a large portion of annual financial value is delivered between May and September. Missing that production window can materially reduce the economic return of the asset.
Consider a 1 MW commercial solar system expected to produce roughly: 1,600,000 kWh per year.
• If electricity savings average: $0.22 per kWh
• That system could generate roughly: $350,000 in annual utility savings
• If the system is underperforming by just 15%
• The lost value could be more than: $50,000 per year
And that assumes the issue is detected quickly. If it goes unnoticed, the financial impact compounds.
Many solar systems were installed years ago by contractors that are no longer actively involved in operations. Owners often assume that:
• Monitoring systems will automatically alert them
• Their utility bill will reveal performance issues
• Someone is actively watching the system
In reality, solar monitoring often requires active asset management to be effective.
This includes:
• Production benchmarking against weather and expected output
• Reviewing inverter-level performance
• Conducting periodic on-site inspections
Without this level of oversight, performance issues can remain hidden.
With summer approaching, many organizations find it helpful to perform a solar performance review that evaluates:
• Expected vs. actual energy production
• Operational status of inverters and arrays
• Communications and data availability
• Visible equipment issues or safety concerns
• Opportunities for corrective maintenance
Addressing issues now helps ensure that the system is fully operational before the most valuable production months arrive.
Solar systems are long-term infrastructure assets that can generate millions of dollars in utility savings over their lifetime. But like any complex asset, they require ongoing oversight and maintenance to perform as intended. If it has been a while since your solar portfolio has been reviewed, now is a good time to ask:
Is your system fully operational ahead of this summer?
If you'd like an independent review of your solar system performance, our team would be happy to help. Reach out to Transform Energy Asset Management to learn more.