The solar industry was in its early stages in the early 2000s, and I was just getting started myself. Finishing a home in California at a time when new technology in the renewable energy space was all the buzz, installing solar panels was a no-brainer to me.
Not long after my first solar system was installed and commissioned on my home, one of the founders of the company I worked for approached me to talk about solar. We stayed in touch over the next few years, exchanging ideas and sharing our observations of the rapid changes in the industry. By 2014, I officially joined as CEO, and I knew one thing for sure: the future of solar energy would be driven by software.
At the time, I anticipated that software and modern architecture would drive not only more value for customers but also new revenue opportunities by expanding the capabilities of inverters and other components.
“Software and a modern architecture will deliver increased value to customers and create the opportunity to drive additional revenue by increasing the capabilities of the inverter’s data functionality to deliver value beyond its original intent,” I wrote in my internal memo in 2017.
This vision called for an expanded data architecture within the inverter, coupled with a robust cloud infrastructure—a truly holistic approach enabled by advanced software.
So far, my predictions around solar software have proven correct. The solar industry is now at a point where software isn’t just important; it has become essential to unlocking the full potential of solar energy. In addition to more reliable and performant equipment, module-level monitoring, remote operations and maintenance, predictive diagnostics, and installation and commissioning support functions enabled by software have surely played a pivotal role in driving the growth of solar globally.
A seismic shift from 2017
Over the last decade, I’ve watched the solar industry transition from a niche market dependent on government subsidies to a major component of the energy sector. Solar power is no longer just a green alternative—thanks to the technology that underpins it, it’s a competitive, cost-effective solution. As I predicted in 2017, distributed energy has now become “part of the fabric of the new norm of life,” as integral to modern life as mobile phones, thanks in large part to continuous advancements towards software-driven architectures.
The growth of distributed solar, alongside booming sectors like battery storage, EV charging and energy management, demonstrates that the future of solar energy relies not only on hardware but on software that allows these technologies to work together seamlessly. Software is driving innovation forward.
In today’s market, the software that can process and analyze the vast amounts of data generated by solar systems creates real value. Once empowered with analytical processing functions, this data is critical for everything from optimizing system performance to properly charging batteries and managing large-scale solar portfolios from a single pane of glass. Without robust software, installers, operators, and homeowners are left with an untapped ocean of data. Without the tools to suss out everything from underperforming components to dirty modules, systems will rarely meet their full potential.
Almost every component in a modern solar system, from inverters to monitoring tools, now depends on software to some degree. This software isn’t just making hardware work—it’s adding value far beyond what the physical components can deliver on their own. I make the comparison to the smartphone. How many more things are possible beyond making phone calls or sending text messages? It’s the same with solar: the potential is immense, and software allows us to tap into that potential.
Similarly, solar systems are no longer just about generating energy. As I wrote in 2017, “the high content of software as the core cornerstone” has paved the way for entirely new services and markets, all transforming how energy integrates into our lives. Just as advancements in IT, networking, and database technology created global connectivity, so too is software in solar enabling unprecedented levels of performance, efficiency, and user control. In essence, software unlocks the immense potential of solar, allowing us to go far beyond the original purpose of ‘making electrons’ to reshape the industry.
Let’s break this down further. In the past, the installation process was a straightforward hardware operation—install the modules, connect the inverter, and turn it on. But now, installation is just the beginning. With advanced software, installers can remotely monitor every aspect of the system’s performance, making it easier to identify and fix issues before they require truck rolls. This is where software provides both operational and financial efficiencies, helping companies transform the business of solar.
I highlighted that credible value from global monitoring solutions would require integrating data from multiple sources, whether from different module and inverter manufacturers or geographically diverse locations, into a centralized data repository. Collecting and managing this diverse data across residential, commercial, and utility-scale systems is now essential. This unified approach doesn’t just enhance operational efficiency; it enables companies to deliver unparalleled visibility and control, fundamentally transforming the standards we set for the solar industry.
Unlocking new efficiencies with software
The more data we can acquire and analyze from solar installations, the more intelligent and efficient the systems can become. Software enables this by transforming raw data into actionable insights. For example, predictive maintenance programs can analyze and predict energy consumption versus energy production with a high degree of accuracy, providing users with more control and foresight.
However, not every solar company embraces the importance of software. Some will remain focused on hardware, providing better inverters or modules while leaving the integration of software to others. The landscape is changing too quickly, and the demands on solar systems are becoming more complex. In my view, companies that adopt a software-first mentality will outcompete those that cling to a hardware-only approach.
Software also helps reduce costs and manage risk. As solar systems grow in complexity and size, particularly with the addition of storage and other clean energy technologies, only software can manage them effectively. Whether streamlining operations, predicting maintenance needs, or optimizing energy use, software is the key to reducing the total cost of ownership for solar installations.
For solar installers, this translates to more efficient operations, reduced downtime, and happier customers. Remote monitoring, intelligent solar portfolio management, and installation support are just a few examples of how advanced software tools unlock new levels of efficiency. For example, imagine reducing truck rolls by double-digit percentages. The savings in time and resources are significant, especially as systems under management become larger and more numerous.
The path forward
As I look toward the future of the solar industry as a whole, one thing is clear: software will continue to be the driving force that takes solar to new heights. As an industry, we must remain focused on providing value to installers, asset owners, and operators by driving increased energy production, lowering operational costs, and minimizing the need for additional headcount through automation. These advancements translate to higher returns on investment and greater efficiency across solar systems. Inverters, for example, have evolved from simple energy converters into connected smart hubs, hosting monitoring functionality and communication technology while pushing critical data to the cloud. For the industry to thrive, embracing software’s full potential is not just an advantage—it’s essential to delivering on the promise of clean, reliable energy.
Zvi Alon is CEO of Tigo Energy.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
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