- Projected annual revenue stream from energy production
- Projected value of Solar Renewable Energy Credits (SRECs)
- Tax benefits
- Subsidies
While tax benefits and subsidies can be realized in the short term (a few years), the variability in the revenue and SRECs stream can significantly degrade the expected IRR, due to poor operations and management of these solar assets in the long run.
In addition, a solar power plant with much-reduced actual energy production – compared to originally projected figures – will experience a drastic loss in its resale value for the investor, multiplying the investor's loss. Most investors and asset owners realize this only when they are about to sell the asset.
NeoZyte offers a comprehensive solution to minimize risk in solar asset investments through a structured approach:
Risk Assessment Service – Investment Decisions and Project Financing
NeoZyte Risk Assessment begins with the expert inspection of a power plant, testing it to ensure that the plant performs as expected. Our commissioning process inspects each component of the system, and the plant's performance as a whole. NeoZyte determines the true value of the solar asset through detailed solar plan profiling, inspection, and accurate production modeling. This establishes an accurate baseline for expected production, which is valuable for investment decision-making and for significantly reducing risks in the project financing phase.
Risk Evaluation of an Existing Solar Power Plant
It is important to understand the true value/potential of an asset before acquisition and/or sale. NeoZyte Risk Evaluation of an existing solar power plant is based on the true value of the solar asset, which we determine through detailed solar plant profiling, components inspection, detailed and accurate production modeling, and testing to ensure that the plant performs as expected.
We use Production Modeling to project expected production, and to compare and contrast results with the plant's past performance. This helps us to determine the health and the potential of the asset. For example, an inverter not performing to the specifications or expected level can be identified, and the resulting performance degradation as well as the required repair/replacement cost can be adjusted in the overall evaluation of the project.
Risk Management through Structured Operations and Management
NeoZyte develops and implements an operations and management plan to handle the day-to-day running of your solar assets, using our NeoZyte Solar Asset Management (NSAM) platform to ensure that your plant operates at optimal performance.
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