O&M: Solar Risk Assessment Report

Quantitative Insights from the Industry Experts

O&M: Solar Risk Assessment Report

Borrego Solar’s Operations and Maintenance (O&M) team is among the industry’s leading experts on the measurement and management of solar production risk. Today, we’re releasing a Solar Risk Assessment 2019 Report with nine other industry leading companies: kWh Analytics, DNV GL, PV Evolution Labs, Clean Power Research, Heliolytics, Clean Energy Associates, Strata Solar, Wood Mackenzie Power & Renewables and SunPower. Each company has contributed data-driven research on a specific element of solar production risk written for the non-technical financial community.

This report will be refreshed every year to provide investors with the latest insights on the evolution of solar generation risk. Fundamentally, it is our hope that this report will serve as a guide for investors who recognize the importance of allowing data-based insights to inform the deployment of capital.

While the financial community is—rightfully—focused on newly emergent risks of this asset class, such as managing the merchant tail and basis risk, it’s important that the financial community remain vigilant on the question of solar production risk.

On page 4 of the report, are our findings from a 2018 performance review of a subset of Borrego Solar managed plants that found that 25% of under-performance not related to environmental factors is associated with the Return Merchandise Authorization (RMA) process of an inverter/inverter component or for service provided by an inverter original equipment manufacturer (OEM). Negotiating a strong warranty when procuring inverters can substantially mitigate or eliminate this risk.

Download the report.