How solar O&M partnerships drive increased IRR

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Asset managers consistently report that anything and everything can happen to their portfolios over 20+ year lifecycles. While established playbooks address most standard operational issues, a significant portion of challenges require customized solutions beyond conventional vendor service offerings.

Industry data from over 350,000 asset years across commercial and community portfolios shows clear patterns that distinguish transactional vendor relationships from strategic partnerships. And the financial implications are substantial.

The operational distinction

Traditional vendors operate within defined service boundaries: reactive maintenance triggered by alerts, standardized solutions for covered equipment, and limited problem-solving for unique configurations.

Partnership-based O&M operates differently: proactive maintenance informed by portfolio-level analytics, customized solutions for project-specific challenges (SEL relays, medium voltage transformers, rapid shutdown equipment), and performance metrics aligned with production targets rather than service delivery checkboxes.

Why this matters now

Three forces are reshaping O&M economics:

  1. Financial performance: Development teams structure PPAs based on aggressive production forecasts. Minor performance degradations compound over asset lifecycles; portfolio-level impacts can reach millions in lost revenue.
  2. Labor constraints: Skilled technician availability is declining while costs increase 15-30% annually, accelerating industry consolidation.
  3. Optimization demands: Tariff impacts and policy uncertainty require maximizing kilowatt-hour production from existing equipment rather than baseline maintenance.

Quantifiable partnership value

Portfolio-level analytics across gigawatt-scale deployments identify failure patterns before production impact, reducing corrective maintenance costs by 40-60% compared to reactive models.

Industry data shows corrective maintenance peaks during the first two years, when workmanship issues occur. Front-loading budgets during this period (counter to traditional allocations) significantly improves financial planning accuracy.

Preventive maintenance now demonstrates positive ROI across all asset classes. Regular inspections identify degradation before production impact, extending equipment lifecycles and mitigating expensive corrective interventions.

Selection criteria

Asset managers need O&M providers who can address the handful of issues that don’t have established playbooks, meaning the challenges that require technical depth and portfolio-level insights rather than standardized service responses.

Key evaluation criteria include: portfolio scale for comparative data analysis, technical expertise across diverse OEMs and equipment configurations, AI-enhanced analytics coupled with human expertise for interpretation, geographic coverage for consistent service delivery, and incentive structures aligned directly to production targets.

The bottom line

Equipment fails – sometimes repeatedly and at scale. Issues around medium voltage transformers, rapid shutdown systems, and inverter communications financially impact O&M planning. Providers with technical expertise and the operational flexibility to address these challenges – such as Omnidian – make the difference between meeting production targets and underperforming against PPA obligations.

The most effective O&M relationships align provider incentives with asset performance outcomes. When systems fail to perform, partners should share that impact, creating genuine alignment around operational excellence and long-term asset optimization.

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