Global Solar Industry Loses $10 Billion in Asset Underperformance in 2024

4. Inverters were responsible for 37% of observed power loss, while string and combiner faults saw a 19% and 22% year-on-year increase, indicating a shift in power loss responsibility. This trend is notable in the commercial and industrial (C&I) sector, where smaller sites with less than 5MW capacity faced challenges with an average of 264 identified DC health issues per megawatt annually. These distributed sites make timely maintenance more difficult, increasing vulnerability to major events like fires and outages.

Physical damage to modules became more common in 2024, causing half of module-level power loss anomalies, a significant increase from the previous year. Meanwhile, cell defects as a cause of power loss anomalies decreased, highlighting the shifting landscape of module performance challenges.

The solar industry is increasingly recognizing the risks posed by extreme weather events like hailstorms. With larger projects and modules becoming more prevalent, there is a heightened concern for physical damage. Reports suggest that weather-related events could impact solar projects by over 300%, with storm-prone regions like ERCOT in Texas at higher risk. As climate change worsens, these risks are expected to continue evolving.

In Texas, the fifth-highest loss per megawatt of solar capacity was recorded in 2024. Labor shortages in the operations and maintenance (O&M) sector are becoming more apparent, with significant growth in solar capacity outpacing operational labor. Political factors, such as changes in federal policies, also pose uncertainties for the future of the US solar industry.

Despite these challenges, the solar industry remains resilient, with substantial growth projected in the coming years. Efficiency through technology and a focus on economic fundamentals will be key for the industry’s sustainability and success.