Strategic renewable energy consultancy calls on property asset managers to prioritise the performance and safety of their commercial solar PV assets to boost profitability
Landlords and property asset managers should pay closer attention to the operations and maintenance of the solar systems installed on their buildings otherwise they risk devaluing their asset and also missing out on potentially lucrative returns, according to Longevity Power, the independent strategic renewable energy consultancy.
As the global solar market continues to grow, the losses from underperforming solar assets grow with it. 2024 research by RaptorMaps, the solar asset management company, found that worldwide, underperforming solar PV systems are estimated to have led to USD$4.6 billion in preventable losses in 2023.
Anthony Maguire, Managing Director at Longevity Power, explained, “A commercial solar PV system is an investment that needs to be properly maintained and monitored in order to deliver a reliable ongoing return for the owner. Real estate investors who install solar PV systems on their properties often rely on the installer to oversee the operations and maintenance of their new asset. This approach may seem easier, however installers are often not well placed to provide a sufficiently high quality of service”.
Correctly maintaining and optimising a solar PV system can be challenging without the right expertise. Maguire makes the point that the potential revenue missed can quickly add up without owners realising or taking any steps to rectify it.
“Without properly tracking performance, there is no recourse for the asset owner to trigger performance damages or remediation work for which the installer may be contractually liable” said Maguire. “In reality, companies that install systems are often not well equipped to carry out maintenance and monitor performance because they lack both the dedicated in-house expertise and the appropriate platform, often relying upon the free portal provided by the inverter manufacturer.”
Maguire continued, “At a basic level, failing to monitor your asset can be a significant fire safety risk but further to this, it can have a big impact on projects return on investment.”
“For example, there is a very real possibility that the asset owner might be receiving an export tariff for the energy generated from their building’s solar system that is below market rate.By tendering this regularly you can secure a higher rate. And in markets where there are negative export prices during periods of peak generation, systems that are not managed in a dynamic, smart way will actually incur a cost.
“Poor solar PV maintenance and management also causes problems further down the line when the time comes to sell a property. We are increasingly seeing prospective buyers pull out of sales where onsite solar PV systems are lacking a data bank of historical performance data and as-built specification documentation.
“Missed revenue opportunities can quickly add up too, including the potential for the co-location of battery storage. By continually evaluating the consumption pattern of the building, owners can identify opportunities to install batteries for the storage of surplus electricity rather than exporting it back to the grid. Investing in on-site battery storage becomes financially sensible and delivers significant cost savings as both the consumption pattern of the asset and the market price of consumed electricity and surplus generation inevitably change over time.
Maguire identified the following important steps for asset managers and property owners to follow to ensure poor performance doesn’t eat into potential returns.
“Fundamentally owners need to be smart about how they manage these assets. To get the best out of an asset, owners need to remotely monitor their system on a platform that is able to collate a wide variey of data points to ensure that it is performing in line with expectations,” he said.
“This way, the platform can conclusively determine whether there is a safety fault that merits further investigation, or based on the cost of cleaning and the forecasted drop off in performance, whether it is worthwhile having the panels cleaned.”
“Without careful operation, maintenance and management of their solar PV systems, asset owners are not only compromising the safety of their tenants and their buildings, but also leaving money on the table and delaying a worthwhile return on their investment.”
About Longevity Power
Longevity Power is a global leader in renewable energy solutions, offering strategic advisory, project management, and full turnkey services for both onsite and offsite projects, including electric vehicle charging. With offices across Europe and North America, we guide businesses through the complexities of the global energy transition, helping them develop customized renewable energy strategies to achieve their net-zero goals. To know more, visit www.longevity-power.com .
Press contacts
Alex Sowden, Alex Henderson or Stuart Heckford
Spreckley PR
E: Longevity@spreckley.co.uk
