Asset management typically refers to the systematic direction of assets over their life cycle. Assets are either physical or intangible. Physical assets can include equipment that generates value and its components. Intangible assets include cash and securities. The purpose of asset management is to realise the value of the assets.
Solar asset management revolves around maintaining the physical equipment and components of a power generating site, and the generation and sale of energy. It is the systematic direction of a site’s physical assets to ensure optimal financial performance.
Solar asset management can be fragmented into three components:
Technical solar asset management:
Monitoring and reporting the real time and estimated power generation performance of the project or portfolio. This involves a holistic approach to knowing how much a project should be producing for any given period (considering factors such as weather, seasons, or degradation of assets), ensuring that generation targets are met, and uncovering the causes if not. The labour involved in physically maintaining the site is considered Operations and Maintenance (O&M) and can be done in house or outsourced.
Learn more about what Technical KPIs to track when managing solar PV projects.
Commercial solar asset management:
Tracking costs, warranties and ensuring contacts, compliances, and other regulatory requirements are met. Regulatory compliances need to be met to qualify for benefits such as the Solar Investment Tax Credit (ITC) and Renewable Energy Certificates (REC).
Financial solar asset management:
Tracking and reporting investment performance. This may also include invoicing, tax preparation, insurance administration, and equity management. Managing the entire portfolio to ensure that the investment is meeting NPV and IRR targets helps to sell the investment in the future.
Learn more about what Financial KPIs to track when managing solar PV projects.
Importance of solar asset management:
- Lowers Levelized Cost of Electricity (LCOE).
- Prevent fees and other legal implications due to missing compliances and regulations.
- Apply preventative maintenance and increase power generation.
- Reduces risk and improves investment performance.
Check out our asset management software:
Arbox’s Hap is a cloud based asset management platform for the renewable energy sector. It has features that satisfies the needs of all three Technical, Commercial, and Financial asset management areas. Below are just some of the features Hap includes. Click the image below to learn more!
Contact us today to see how HAP® can help you manage your activities efficiently and boost your bottom line.