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O&M annuity - solar portfolio
What it is
Operations and maintenance of commissioned solar plants - cleaning, inverter servicing, performance monitoring and reporting - contracted for multi-year terms, often with generation guarantees
It accumulates with every project built and continues for the asset's 25-year life
Impact on industries
- Converts a lumpy EPC business into a growing annuity, with margins above construction and revenue independent of new order flow
- Performance data across a large fleet is a genuine competitive asset in bidding and in guaranteeing generation
- Generation guarantees transfer performance risk to the operator, so underperformance from module degradation or grid curtailment becomes the contractor's problem
- Same installed-base logic as aftermarket service in capital equipment - the fleet, not the order book, is the durable business