Increasing financial returns on Solar PV projects might not be very costly, but how do we get there?
FREMONT, CA: The simplest way to maximize the financial returns on solar projects appears to be by driving down the capital costs of solar photovoltaic (PV) systems by buying low-quality components. But when the target is on the long-term return of the project is prioritized in place of short-term payback, the outcomes can be quite surprising.
How do we Optimize Returns?
The specific characteristics that should be given attention to before choosing a solar module to avail higher return of investment are the nameplate power rating and the module’s PVusa Test Conditions (PTC) rating. The nameplate power rating is a random proxy of anticipated output and the power tolerance. For example, the crystalline silicon (c-SI) solar module has a tolerance limit of about minus three to plus three percent.
Therefore, the actual power rating obtained could be significantly lower than the nameplate rating. Additionally, a more extensive power tolerance range can result in high module mismatch losses and decrease the available system output for a given nameplate rating.
The PTC rating represents the measured value of the power output of the modules under more realistic environmental conditions. In addition, many states use PTC ratings to predict the number of cash rebates.
Manufacturers of higher quality modules provide a stronger warranty as they have more confidence in their modules. The average PV module manufacturers consistently guarantee that their product will degrade in output within 10 percent in the initial ten years and no more than 20 percent till 25 years.
However, modules assure three percent degradation in the first year and less than half of that annually. A reliable and durable module will reduce the risk of complications with the system and decrease the quantity of maintenance required.
The consideration should be determined in terms of the history of quality and stability of the company underwriting a performance guarantee. Still, there exist various PV manufacturers who have a proven long-term track record. Smart investors have been putting their money backward by those who have confidence in their systems, which use higher quality PV modules since they give a higher long-term return on the project with less risk.
