What is the difference between Solar Asset Management and Solar O&M?
As the solar industry grows and new projects proliferate, it’s important to take a moment and consider all the solar systems that have already been installed. Building new systems is great, but it's almost always more cost efficient to optimize existing solar assets to maximize financial returns and ensure long-term energy infrastructure reliability. Broadly speaking, there are two separate (but tightly related) service lines managing and supporting existing solar assets: (1) Solar Operations and Maintenance services (Solar O&M); and, (2) Solar Asset Management services (AM).
So, what is the difference between these two service lines? Considering solar is a relatively new industry at scale, there is still some debate in the industry which specific activity belongs in which service line, but a number of distinctions are already clear. Read on...
Asset Management Services vs O&M Services
The solar industry has traditionally focused more aggressively on how to build cost-effective projects and servicing and maintaining solar assets has really only recently become a priority as owner/operators realize the investments need "care and feeding." Solar is a very good investment but solar systems are literally power stations and they do require maintenance. This leads to solar owner-operators re-actively managing and operating their distributed solar assets. And, it's hard to monitor performance, manage the various technical components, know when a system needs work, manage the equipment supply chain, and schedule and dispatch experienced maintenance and technical crews.
Asset management literally works on behalf of the solar owner-operator to provide the services, activities and judgment required to get the best financial results from the project. With proactive asset management, you can avoid under-performance and costly re-active repairs thereby delivering maximum revenue and profit.
Operations and Maintenance on the other hand has been referred to as “boots on the ground,” technical activities. O&M generally consists of a list of site-specific preventative and corrective maintenance which enable solar arrays to produce energy in compliance with applicable rules and codes. Some of the major goals for O&M include:
- Increased ROI through production optimization.
- Risk reduction for investors and owner operators.
- Protecting asset value.
- Compliance with local codes and utility regulations.
- Reduction of life cycle costs.
Deliver Maximum Revenue and Profit with HelioPower
HelioPower provides discrete Solar AM and Solar O&M plans for single systems and solar owner-operators. We can tailor a plan that meets your needs, including:
- Performance Monitoring
- Demand side monitoring
- Billing and Collections
- Accounting and Financial Reporting
- Distribution to investors
- UCC Filing
- Operations and Maintenance
With proper and effective implementation of Solar AM or Solar O&M strategies, solar owner-operators will significantly increase the odds that their projects will deliver the baseline expected return on investment but also, simultaneously avoiding unplanned down-time and costly repairs.
If you would like to learn more about our complete suite of solar Asset Management services, click here.