Transitioning from Solar Expansion to Effective Operations in the PV Industry

25 Years to Go: Shifting the Focus from Solar Growth to Successful Operations
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By Avery Black, Leo Kim, and Don Nista of Raptor Maps
June 12, 2025

The rapid growth of the photovoltaic (PV) industry has increased existing challenges related to power loss in solar plants. Equipment-driven underperformance in PV power plants has tripled over the past five years. As solar power becomes a critical component of the global energy system, operators must transition from reactive troubleshooting to data-driven operations and maintenance (O&M) strategies.

The solar industry has witnessed unprecedented expansion, surpassing 2 terawatts (TW) of installed capacity in 2024—just two years after reaching 1 TW. This growth has been propelled by rising global energy demand, favorable economics, and advancements in PV technology. However, the industry’s focus on growth has intensified issues related to power loss and long-term site health. Equipment-driven underperformance has surged, underscoring the urgent need for enhanced O&M strategies.

As PV capacity increases, so do instances of underperformance. The rise in underperformance can be attributed to new challenges that emerge as the industry scales. As global solar capacity expands, projects are becoming larger—some measured in gigawatts (GW) rather than megawatts (MW). For example, in Texas, the average size of utility-scale sites under construction reached 197 megawatts alternating current (MWac) in 2024. This upscaling necessitates significant work from solar companies to maintain high-quality operations, especially in remote, weather-sensitive areas. With power capacity loss reaching 5.77% in 2024, the inability to optimize operations could lead to billions in lost revenue, potentially amounting to a US$10 billion issue globally. Therefore, the emphasis must shift towards performance intelligence and data-driven solutions that ensure long-term operational success, as energy security and rising global electricity demand depend on a robust solar industry.

### The Role of Labor in Successful Operations

The gap in solar operations and equipment performance is often viewed through the lens of labor constraints. Despite the increasing power loss across solar assets, O&M budgets have remained limited. In the U.S., only 7.65% of solar jobs are allocated to O&M, with just 26% of those focused on “installation and repair.” Meanwhile, power loss has reached 5.77% as of 2024, indicating a disconnect between capital allocation and operational effectiveness.

Three primary challenges have surfaced, exacerbating labor constraints in solar operations:

1. **High turnover rates**: Employers face difficulties in hiring for solar jobs, with 27% of O&M employees leaving their positions each year, complicating the maintenance of an experienced workforce.
2. **Budget constraints**: O&M budgets are often predetermined, sometimes during project financing, where optimistic cost projections may overlook unforeseen circumstances.
3. **Competitive market pressures**: O&M providers are squeezed on pricing to secure contracts with customers, limiting resources for effective maintenance.

To address these challenges, the industry must undergo a systemic shift in priorities. While project financing often focuses on minimizing upfront costs, allocating resources to O&M can reduce the likelihood of escalating expenses over time. Since 70% of O&M costs stem from labor-related inflation, inefficiencies in workforce deployment only add to financial strain.

### Adjusting for Labor Constraints

**Traditional Solution**: Allocate more funds toward on-site efforts and experienced full-time employees (FTEs).
**Scalable Solution**: Invest in systems that optimize on-the-ground resource allocation and minimize the need for investigative or inspection truck rolls.

Currently, the average solar farm has nearly 6% of recoverable direct current (DC) losses that should be addressed.

### State of Solar Performance

Five consecutive years of increasing power loss indicate that performance will not improve without proactive measures. Solar farms in our 2024 dataset experienced an average of 249 anomalous events per megawatt annually, creating challenges for remediation, preventative maintenance, and monitoring. Even if one-third of these issues are addressable, a plant manager at a 100 MW utility-scale site must manage around 8,000 equipment defects each year. This daunting task adds to the responsibilities of O&M teams, which include compliance tasks and inspections for thermal events in high-voltage equipment.

Currently, many understaffed sites report that technicians are often “fighting fires,” dealing with significant equipment failures that necessitate reactive responses. In poorly performing sites, larger systemic issues are more prevalent, leading to increased power loss. The most common system-level failure points in 2024 included:

– **Inverters**: The largest DC health component, responsible for approximately 40% of site underperformance.
– **Combiners and Strings**: Experienced year-over-year issue increases of 22% and 19%, respectively.
– **Trackers**: Malfunctioning trackers accounted for over 9% of overall DC losses and are likely linked to an 80% increase in damaged modules.

Module-level problems can escalate, as overheating modules and components pose risks of fire and equipment damage. For instance, a 0.01% increase in damaged modules can increase ground fault-related downtime by six times. To maintain a healthy solar asset, both system-level and module-level concerns must be managed effectively. Addressing smaller, high-risk issues before they worsen is crucial, although resource constraints make this challenging. Specialized inspections have become essential for identifying minor defects before they escalate into systemic failures.

### Breaking the ‘Troubleshooting Loop’

Traditional solar maintenance heavily relies on reactive approaches, often resulting in inefficient troubleshooting cycles:

1. A Remote Operations Center (ROC) validates an alarm through data analysis.
2. A technician is dispatched following an alert or failure.
3. The technician arrives on-site with limited information, requiring manual root-cause analysis.
4. If the issue cannot be resolved, a second visit is needed with the necessary tools.
5. Lack of documentation hinders technicians from identifying recurring issues or equipment patterns.
6. Temporary fixes are applied, but without preventative action, the same failures recur.

High-priority issues, though less frequent, account for 90% of power loss in a PV power plant. This reactive cycle leads to increased travel time, longer repair times, and elevated operating costs. A primary goal for O&M teams should be to break this cycle. Collecting data through flexible and remote means can facilitate smarter, faster decision-making. Ultimately, deploying technicians equipped with the right tools and parts reduces travel time and costs.

### Technology-Driven Solutions

To address these inefficiencies, the industry is moving towards performance intelligence through automation and analytics. Leading companies are leveraging:

– **Robotics and Automation**: As solar sites typically operate over a 25-year lifecycle, maintaining performance and reliability becomes a central challenge. Robotics and automation are critical for sustaining long-term operational performance. Managing utility-scale solar, especially larger, remote sites, necessitates limiting labor-intensive tasks.

In 2024, Raptor Maps customers reported a 70% increase in aerial inspection frequency compared to the previous year, attributed to automated inspections replacing manual processes in areas like substation inspections and vegetation growth assessments. As operators transition from reactive to preventative maintenance, specialized inspections have become vital for addressing minor defects before they lead to major failures. In 2024, these inspections constituted over 23% of non-IR aerial assessments, reflecting a growing emphasis on early intervention.

### AI and Software for Efficient Operations

Historically, solar asset owners and operators have been limited by traditional SCADA/DAS systems that only provide combiner-level data, often leading to reactive and time-consuming processes. Recent advancements in AI software and robotics are transforming solar operations, offering automated and repeatable solutions that deliver granular insights and actionable reports to streamline decision-making and maximize system output.

Despite improvements in manufacturing and installation, equipment failures and defects persist across portfolios, making regular maintenance crucial. Many O&M teams continue to rely on monitoring systems that do not support root cause analysis or problem localization on-site. Improving data processing tools during solar inspections can unlock new capabilities for faster and more accurate anomaly detection. Many top performers are utilizing AI-powered solutions that provide quick, detailed insights, optimizing on-site time for O&M teams.

### Enhanced Data Transparency

High-priority issues account for 90% of power loss but only 40% of flagged issues. This disparity arises because larger equipment failures (e.g., inverters or combiners) have a more substantial impact on capacity than individual module defects. Nevertheless, traditional solutions have proven inadequate, as power loss continues to rise. This challenge affects sites of all sizes, with high-priority issues representing 80-90% of power production loss in 2024.

Simultaneously, software presents a critical opportunity to enhance performance by prioritizing and documenting granular module issues. While low-level module and sub-module defects may appear insignificant, tracking trends in damage and defects can reveal broader site-level patterns that require attention. Ensuring data transparency in these areas is vital for identifying systemic risks and implementing proactive solutions before they escalate.

### Final Thoughts

Underperformance in solar assets results in an average annual financial impact of US$5,700-6,000 per megawatt. Over a project’s lifecycle, this inefficiency can reduce internal rates of return (IRR) by up to 249 basis points. As the industry continues to scale, operators must shift from reactive troubleshooting to data-driven O&M strategies. Decision-makers are leaving significant revenue on the table, and the trends in solar data reflect this reality.

For instance:

– In 2023, it was estimated that owners underestimated the financial impact of weather events by over 300%.
– In 2024, the rate of anomalous modules rose by 80%, marking the fifth consecutive year of increased underperformance.

The impact of implementing the solutions outlined in this article cannot be overstated. As solar plays a vital role in the global energy transition, the efficient operation of these projects is crucial.

### References

1. “Solar PV power capacity in the Net Zero Scenario, 2015-2030.” IEA
2. “Global Solar Report: 2025 Edition.” Raptor Maps
3. “Major Projects List.” SEIA
4. “National Solar Jobs Census.” IREC
5. “Episode 8 of Power Players Podcast: The True Cost of Solar O&M is Increasing.” Origis Energy
6. “Module Breakage Impacts on System Availability.” Silicon Ranch Presentation
7. “PPA Single Owner Cash Flow Model.” NREL
8. “Solar Risk Assessment.” kWh Analytics

### Authors

**Avery Black**: Works on the growth strategy team at Raptor Maps, developing business strategies for deploying autonomous robotics and analytical software on solar sites.

**Leo Kim**: Director of marketing and growth at Raptor Maps, with a decade of experience in industrial and energy sectors, focusing on process optimization and AI implementation.

**Don Nista**: A veteran in the solar industry, he has played key roles in building O&M infrastructure and defining strategy for third-party operations across large utility-scale facilities.