Landlords and property asset managers risk devaluing their assets and missing out on significant financial returns if they neglect the proper operations and maintenance of solar systems installed on their buildings, warns Longevity Power.
As the global solar market continues to expand, so too do the losses from underperforming solar assets.
Research by RaptorMaps, a solar asset management company, revealed that poorly performing solar PV systems resulted in an estimated USD $4.6 billion in preventable losses worldwide in 2023 alone.
Anthony Maguire, Managing Director at Longevity Power, emphasises that solar PV systems are long-term investments that require ongoing care.
LACKING EXPERTISE
He says: “A commercial solar PV system is not a ‘set it and forget it’ investment – it must be properly maintained and monitored to deliver reliable returns.
“Many real estate investors rely on installers to handle operations and maintenance, but this can be a costly mistake. Installers often lack the in-house expertise and dedicated platforms needed to provide high-quality service.”
Maguire warns that the revenue loss from unnoticed underperformance can quickly accumulate. Without tracking system performance, asset owners have no way to trigger performance-related damages or remediation work that installers may be contractually obligated to carry out.
FINANCIAL AND SAFETY RISKS
Beyond the financial impact, failing to monitor and maintain solar assets poses a serious fire safety risk. Additionally, it can affect a property’s market value.
Maguire says: “We’re seeing more prospective buyers walk away from deals when a building’s solar PV system lacks historical performance data and proper as-built documentation.”
There are also hidden costs: asset owners may be locked into export tariffs that pay below-market rates for the energy their solar systems generate.
“By tendering export tariffs regularly, owners can often secure higher rates,” Maguire explains. “In some markets, unmonitored systems can even incur costs during periods of negative export prices if they aren’t dynamically managed.”
REVENUE OPPORTUNITIES
Proactive solar management can also uncover new revenue streams.
Maguire highlights the value of integrating battery storage: “By analysing a building’s energy consumption patterns, owners can spot opportunities to install batteries for surplus electricity storage, reducing reliance on the grid and saving costs over time. As both consumption habits and energy prices shift, battery storage can become a game-changing investment.
“Without careful operations, maintenance, and management, asset owners risk not only compromising building safety but also leaving money on the table – delaying the strong return on investment that solar PV systems are designed to deliver.”
