Econometric Modeling of Solar-PV Assets

Econometric Modeling of Solar-PV Assets

Solar-PV Assets can be viewed as an annuity with variable cash flows. The variability in cash flow can be attributed to failure or performance degradation of on-field Solar-PV panels, Balance of System (BOS) components, deviations from expected weather patterns and other extraneous factors.

Asset Owners and Managers are often confronted with the objective of maximizing asset utilization i.e. meeting expected yearly cash flows and more importantly meeting investment ROI across its expected lifetime. To consistently track investment ROI and make economic decision on managing their assets, asset managers need a near-real time econometric model. An econometric model can help Asset managers and owners turn O&M data into actionable information. Given a Solar-PV asset and associated on-field incident & reliability analysis reports, asset managers can use the econometric model to make informed decisions (aimed at maximizing ROI) – to either re-purpose the assets, decommission the asset or maintain status quo.

A good econometric model for Solar-PV O&M should:

  • Perform cost-benefit analysis on incident & reliability report provided by O & M experts.
  • Provide recommendations on remediation measures – possibly to re-purpose, decommission or maintaining status quo for each of the O&M incidents/failures identified.
  • Be Flexible enough to support applicability to a single incident (Failure) or as a group of incident (incident set), as desired.
  • Allow users to weigh the recommendations across incidents (or incident sets) to prioritize investments and possibly exploit correlation between incident where applicable.
  • Factor in entity (i.e. company) specific risk in cost of capital evaluation to support model extensions.

POUNDRA has worked with utilities nationwide to develop an econometric model to help asset owners and managers turn O &M data into actionable information for business decision making. If you are looking for an expert in PV O&M, come talk to us! From being a market influencer to an experienced solution provider let’s walk you through how we have been able to help our customers address their O&M issues today and our future plans to deliver on an integrated software O&M solution for the renewable energy markets.

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