Re-Engineering a Solar System for Improved Performance
Solar energy is currently seeing a massive surge across North America thanks to government mandated renewable goals, rising energy costs, and falling cost of solar components. However, many businesses have been reaping the benefits of solar for over a decade, reducing or eliminating their energy expenses and improving their bottom line.
With rising energy costs, early adopters of solar have had the benefit of saving more and more on their energy bill each and every year. The downside is that these older systems are built with components that are now over 10 years old, and therefore don’t have the technological advancements or efficiency of modern solar equipment.
This becomes less of an issue as many of these older systems have long since paid for themselves, leading many early solar adopters to re-engineer their system with modern panels and equipment to improve generation capability and increase revenue.
Context
Compass works with a number of clients with existing solar installations who are looking to get the most out of their system and invest in their future energy plan. In 2020, we worked with a client who had a rooftop solar PV system that had been built back in 2010. Although they had 10-15 years of life left on their system, they had suspected they could improve their revenues with a re-engineered and updated solar system.
Thanks to the combination of falling costs and massive improvements in efficiency (in the past 10 years, costs have fallen nearly 80% where panel efficiency has doubled), it often makes economic sense for these existing solar users to repower the system with upgraded components.
Challenge
In order to complete the project successfully the following had to first be addressed:
- What is the performance of the existing system?
- What are the limitations of the electrical infrastructure on site to improve the performance with new technology?
- What is the value of generation on the updated system?
It does not always make financial sense to re-engineer a system with upgraded components, which is why optimal engineering and design is a requirement to determine feasibility, length of payback and the level of improvement over the existing system. The goal was to present the client with solutions that ensure maximum generation capability for the least dollar spend, while considering updated design, engineering, local regulation, construction management and authorization to generate.
Approach
Initial Review
Compass completed a comprehensive analysis that allowed our customer to make an informed decision regarding the ability and benefits of upgrading project infrastructure.
After collecting information about the client’s current energy usage, this baseline was then compared against new system engineering designs to find the optimal equipment selection that still remained cost effective.
A design was created with the optimal aspects reusing as much infrastructure to reduce the costs. In this case, the customer’s racking and wiring was checked and confirmed to be in good shape, eliminating the need to spend on unnecessary upgrades.
Detailed Design Process
Once the basics of the approach was determined, an Issue for Review (IFR) drawing was completed and provided to the client for comments and preferences. This design was then submitted to the Electrical Safety Authority (ESA) for Plan Review. The designs underwent a joint discussion to meet all of the safety and protection requirements and minimize the additional cost items such as rapid shutdown and busbar limitations.
After these designs were approved by the ESA, the package was then Issued for Construction (IFC) and we worked with installers to get quotes and provide construction management to make sure the project is built to the design.
Once the construction was complete we worked with ESA to receive “ESA Final,” and with the updated system switched on, recorded all the necessary commissioning steps to confirm safe functionality of all the equipment. Finally, the project was approved for operation.
Results
As a result of our analysis it was determined that the company would greatly benefit from an upgraded system. Based on the engineering designs provided, the customer confidently moved ahead with the re-engineering project. They have extended the operating life of the solar system by 10-15 years, improved its efficiency and revenue generation, and is fully permitted as a long-term, low maintenance asset. This particular customer’s re-engineering resulted in an unlevered IRR of 23.74% and a payback of 3.74 years, in conservative terms. Construction was managed from start to finish, including removal and reconnection.