Maximising ROI with Effective O&M



P V N Sai, Senior Vice President - Operations & Maintenance

Organizations in the renewable energy sector place significant importance on upkeeping their renewable energy infrastructure to ensure maximum benefit out of it. Multiple factors contribute to the degradation of renewable infrastructure like temperature fluctuations, humidity, operational wear and tear, etc. This can impact the efficiency and durability of the project considerably. We are all aware that Operations & Maintenance (O&M) plays a critical role in the maintenance of solar power projects. But how do we ensure effective O&M that will help not just in maintaining the solar modules but also maximise ROI.



To truly maximise Return on Investment, solar stakeholders must look beyond installation CAPEX and focus on robust, data-driven and forward-looking O&M strategies — not shortcuts that compromise quality. Project Design matters, but it’s effective O&M that drives long-term ROI. Here’s how:


  1. Uptime and Availability: Every minute of downtime is lost revenue. To ensure uninterrupted availability, it is essential to have rapid fault detection, swift response systems and 24/7 remote monitoring.
  2. Performance Ratio (PR) Tracking: The PR showcases a plant’s efficiency. A declining PR signals performance issues, which often is fixable with timely intervention.
  3. Predictive and Preventive Maintenance: Leveraging data analytics, plant operators can forecast failures and resolve issues before they escalate. Preventive measures such as routine inspections and thermal scans also extend component lifespans and minimize O&M costs.
  4. Remote Monitoring and Automation:SCADA, IoT, and AI deliver real-time insights, reducing manual checks, enhancing accuracy in diagnostics and enabling faster, cost-effective repairs.

The Dark Side of Over-Optimisation: When Cost-Cutting Backfires


In the pursuit of higher ROI, some projects fall into the trap of over-optimisation, cutting costs in ways that jeopardize plant health and longevity.


  1. Substandard Components: Low-tier Assets like modules, Inverters, Transformers, Cables etc may reduce upfront costs but degrade faster, fail more often and underperform over time.
  2. Overloaded Inverter Ratios: To save on inverter CAPEX, developers may push the DC:AC ratio (ILR) beyond 1.4. This leads to clipping losses, overheating and premature inverter failures, negating the cost savings
  3. Under-designed Structures and Foundations: Cheaper, thinner mounting structures may not withstand wind loads, while shallow foundations can lead to misalignment or collapse.


  4. Poor Plant Layout: Tight spacing increases shading, building up heat and hampering cleaning and maintenance.
  5. Inadequate SCADA and Monitoring: Cutting corners on SCADA, sensors, weather monitoring sensors, advanced monitoring systems or predictive maintenance tools which compromises proper visibility into plant operations.
  6. O&M Underbudgeting: O&M is often the first budget line trimmed leading to infrequent and skipped inspections, delayed maintenance, degradation and reducing capacity utilization (CUF).
  7. Civil and Drainage Neglect: Ignoring site grading or drainage systems can result in waterlogging, erosion and structural failures during monsoons
  8. Inflated Yield Projections: To secure financing, developers may present overly optimistic PR or CUF projections. When reality doesn't match, investor confidence drops, and the project’s financial health deteriorates.
  9. Safety Shortcuts: Skipping fire/lightning protection endangers assets and lives.

Cost control should be smart, not cheap


Cost efficiency in O&M is not about cutting corners but about optimizing resources intelligently.


  1. Smart Spare Parts Management: Spare parts inventory should be site-specific, based on common faults, equipment failure trends, and resolution complexity. A predictive approach will minimize downtime, avoid unnecessary overstocking, and optimize O&M costs.
  2. Overloaded Inverter Ratios: To save on inverter CAPEX, developers may push the DC:AC ratio (ILR) beyond 1.4. This leads to clipping losses, overheating and premature inverter failures, negating the cost savings
  3. Warranty and Contract Optimization: Warranty terms and service contracts should be tailored to actual plant conditions, performance metrics, and risks. Understanding component warranties and aligning O&M contracts with realistic CUF and PR expectations prevents disputes and financial losses.
  4. Lifecycle Cost Analysis: It evaluates the total cost of owning and operating a solar plant over 25+ years, including O&M, replacements, and downtime justifying upfront investment in higher-quality components and technologies. This reduces long-term failures and maintenance costs.


Technology as an Enabler


Tools like drones for thermal inspections, I-V curve tracing, AI-based fault prediction, and IoTintegrated SCADA systems significantly enhance diagnostics and reduce labour costs, boost ROI and extend plant life.

Maximising ROI from solar plants doesn’t stop at commissioning, it begins there. Conversely, over-optimising to the point of compromising quality is a short-sighted approach that leads to underperformance and early plant death.

In an industry built for decades of energy production, thinking long-term isn’t optional, but it’s essential. Only by combining strategic O&M with disciplined investment in quality and monitoring can we ensure that solar plants deliver on their promise, i.e. clean, reliable, and profitable energy for the future.