© Copyright 2014, SunSystem Technology

An O&M Perspective

2014 PV Reliability Operations & Maintenance Workshop May 7, 2014

Agenda

• The US Market

• O&M Maturation

• O&M Objectives

• A Perspective on Achieving Objectives

• Q&A

US Market At-a-Glance

• 4,751 MW of solar PV installed in 2013 – Up 41% over 2012 – More than 445,000 systems in operation

• Q4 2013 was the largest quarter ever for PV installations in the U.S.

– 2,106 MW energized, up 60% over the second-largest quarter (Q4 2012) – More solar has been installed in the U.S. in the last 20 months than in the 30

years prior

• Solar accounted for 29% of all new electricity generation capacity in 2013,

– Solar is the second-largest source of new generating capacity behind natural gas

• GTM forecasts 26% PV installation growth in 2014

– Installations reaching nearly 6 GW across all segments – Most rapid growth will occur in the residential segment

Source: GTM

O&M Maturation

O&M Objectives

• Production optimization and uptime maximization for increased asset revenue

• Risk reduction for asset owners and investors

• Protection of asset value and longevity

• Compliance with applicable regulatory bodies

• Transparency on plant production, performance, issues, risks and O&M activities

Objective 1: Production Optimization

• Analysis and assessment of system:

– Understanding systems as built • Component inventory

• Layout & design

• Monitoring systems

• Review of PPA and any performance guarantees

• Assessment report

– Validate the accuracy of metrics (Irradiance sensors, weather sensors, temperatures)

– Validating and updating monitoring software

– Identifying all hardware weaknesses

• Environmental factors

• Prescribe a plan that maps to the system as built

– Each plan is unique – no two systems are built exactly the same

– Boilerplate plans are inherently weak • With more systems than ever before, diversity across systems is the new norm

Objective 2: Risk Reduction

• Proactive vs. Ad hoc or reactive service • Ad Hoc

– Maximizes risk by not identifying or addressing mounting issues until they become a problem • Increases annual downtime • Negatively impacts achieving production goals and ROI

• Proactive Service Plans – Minimizes risk through a custom plan matched to the system(s)

• 24/7/365 monitoring by O&M professionals • Addresses issues/trends before they become problems and negatively

impact production values and ROI – Address multiple items on a single call which keeps maintenance and repair

costs down and maximizes uptime

• Can lead to increased production values and improved ROI

Case & Point

Case & Point - Commercial: Site:

• Single-axis tracker

• 6 Megawatts

Issues: • Reactive management scenario wait for a failure and react

• Recurring string failures

• Inaccuracy of sensors

Results:

Through a custom proactive plan year-over-year production increased 9.37% and downtime was eliminated.

– Minimized logistics associated with repair approvals coupled with increased attention on site led to much faster response times and reduced site visits

– Eliminated downtime associated with string failures

Reduced annual O&M expense and increased ROI

Objective 3: Protection & Preservation of Assets

• Security: – Part of initial assessment and depending on location may require camera monitoring

• Preventative maintenance: – Fundamental to preservation of assets

• Demands a regimen tuned to the individual system and the immediate environment • Warranty requirements have bearing on maintenance requirements • Maturation feature

• Monitoring: – Maintain calibration to ensure accuracy – Software upgrade schedules – Utilizing benchmarks from independent regional sensors – Comparative analysis of data

• Historical performance comparisons • Like-system comparisons

– Validating that performance is site specific or region specific

• Environmental protection: – Shading inverters can result in increased efficiencies – Desert environments dust mitigation

Objective 4: Regulatory Compliance

• Cal ISO is requiring utility-scale operators to provide production forecasts – O&M/asset managers are providing the analysis and

the reports • System monitoring coupled with weather information from

the NSRD (National Solar Resource Database) to provide reliable reports and meet compliance

• Utility curtailments requiring system production to be reduced – As utility infrastructure is modified or serviced, O&M

providers are called on to minimize downtime to what is actually required in a real-time scenario

Objective 5: Performance Transparency

• Proprietary management information systems – Provide system/fleet owner a view into milestone progress

• Ongoing system preventative maintenance • Required repair actions • Large-scale/batch warranty requirements

– Performance guarantees • Providing system owner/managers real-time views and control relative to

actual vs. required production

• O&M records to show assets have been maintained and managed to perform optimally – Demonstrates proactive risk mitigation for current investors as well as

future investors in the event the system(s) is/are sold • Fundamental to meeting due diligence in the sale of a system

– Maximizes resale value of system

• Estimated 1.4 million systems by 2017

• Pure-play O&M is uniquely dedicated to life-cycle system care

System Care Aggregation to O&M Companies

O&M Technician

• Electrician • High-voltage power plant • IT Expert • Telemetry specialist • Software/Specialized hardware • Analytical skills for interpreting data and

executing the necessary responses • Residential customer service – We serve

as the face and the voice of our customer to the homeowner – Answering questions – Explaining performance and monitoring metrics

• As more systems fall under the control of pure-play O&M companies the solar industry and its customers benefit – Aggregation reduces cost per visit and creates economies

of scale

– Lowering annual O&M costs

– Developing the information systems that drive transparency to system performance and ongoing care • Improve quality of care while increasing the efficiency with which

O&M is executed

– Optimizing system performance and maximizing system uptime while driving annual O&M costs down

System Care Aggregation to O&M Companies

Service Calls

Commercial Residential

Sample of 2,000 calls Sample of 500 calls

Questions

© Copyright 2014, SunSystem Technology

Thank You! SunSystem Technology Phone: 916-705-7839

dchase@sunsystemtechnology.com