Defining Solar Asset Management
Solar Asset Management (AM) is the comprehensive scope of work necessary to ensure that a solar project performs contractually, technically, and financially to provide its expected return on investment. A solar asset manager works on behalf of the solar owner-operator (or investor) to provide the services, activities and judgment required to get the best performance from your solar system. Solar assets differ from conventional financial assets. Solar assets are literally electrical power stations with all the attendant concerns: technical, safety and hazardous. Even in normal conditions, a solar asset manager can save you the hassle of monitoring, evaluating and maintaining your solar array(s). So...do you need solar asset management?
Why is Asset Management Important?
Until recently, the concept of actively managing solar assets has been a bit of an afterthought. Solar owner-operators are sold on the thesis that solar is a very low risk asset class with predictable cash flows, well-warrantied equipment and little technical maintenance. However, as the industry matured, maintenance requirements have become more challenging. Solar owner-operators want to control potential risks, while simultaneously ensuring they obtain their expected returns on their solar assets. In addition, the investment tax credit (ITC) structure has created disincentives for installers and developers to focus on long-term performance. But that’s where the asset manager comes in.
Who is the Solar Asset Manager and what do they do?
There is a widespread misconception in the industry that asset management is the same as operations and maintenance, That’s not necessarily true. An asset manager must ensure that all critical information from the project documents to compliance are met in a timely and accurate manner. They are responsible for managing a wide range of non-standard obligations such as:
- Regulatory filings
- Determining when commercial and technical issues need to be addressed
- Monitoring performance
- Creating invoices
- Making payments
- Renewing contracts
- Issuing certificates
- issuing work orders
- Track warranties, insurance or legal claims
- Prepare and analyze budgets
- Submit reports to owner-operators and/or investors
Ignoring asset management can puts owner-operators at risk for potentially damaging legal and financial implications, not to mention under-performance and revenue disappointments
How is it different from solar operations and maintenance?
O&M has always been referred to as “boots on the ground” technical activities. It generally consists of a list of site-specific preventative and corrective maintenance which enable solar arrays to produce energy compliance with applicable rules and codes. Asset Management on the other hand, literally works on behalf of the solar owner-operator. It’s more than just technical maintenance, and requires a deep understanding of how the equipment, contracts and financial structure all work together to achieve the desired results.
Let HelioPower help you deliver maximum revenue and profit
Successful solar owner-operators recognize asset management as critical to the future success of their solar arrays. Which is why HelioPower provides discrete Solar AM and Solar O&M plans for single systems and solar owner-operators. We provide asset management services independent of O&M services or in conjunction with O&M services. It all depends on your needs.
With proper, pro-active and efficient Asset Management, you’ll generate your expected returns and simultaneously avoid unplanned down-time and costly repairs.