Poor Solar PV Quality Can Raise LCOE by Over 20%, HelioVolta Report Finds – IndexBox

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Substandard workmanship in solar photovoltaic installations can drive up a PV system’s levelised cost of energy by over 20%, as detailed in a HelioVolta report. These conclusions stem from the fourth annual SolarGrade PV Health Report, produced by the independent field inspection and technical services provider for solar PV and energy storage projects. The study evaluated quality and workmanship across over 1,500 solar assets located in the US and Puerto Rico, representing a combined 8GW of PV capacity.
Each inspected project received a grade under the company’s HelioVolta Quality Standard, which allots a maximum of 1,000 points. Deductions are applied according to how many issues HelioVolta documented, along with their severity and status, with point reductions calculated on a percentile basis that shifts depending on project size. Consequently, projects receiving an F grade, meaning 599 points or fewer, experienced the greatest financial consequences and might see their LCOE climb by 21%. Meanwhile, projects losing over 100 points and earning a B grade would face a 7% LCOE rise.
Among the inspected projects, 87% exhibited major issues demanding urgent corrective measures, while 8%, roughly one in ten, had critical issues necessitating immediate de-energisation. Looking at the various system categories covered in the report, including rooftop, ground-mount, tracker and canopy, tracker systems showed the largest proportion of critical issues at 18%. Rooftop and ground-mounted systems registered 8% and 4%, respectively. HelioVolta noted that critical problems in tracker systems stem primarily from connector and wire management failures.
James Nagel, co-founder and CTO of HelioVolta, stated that the company’s modelling indicates the disparity between an A-rated and an F-rated PV system can elevate the levelised cost of energy by over 20%. He characterised this as the distinction between an asset that turns a profit and one left stranded by expiring tax credits, adding that asset owners who accept aggressive EPC cost-cutting can no longer sustain profitable portfolios.
One central conclusion from the report concerns the value of quality, since a solar project’s lifetime financial results are linked to it. When a system is constructed with extensive, systemic defects, generation declines and maintenance expenses surge. The poorest-quality systems deliver an estimated 6% less output over their lifetimes and need as much as three times the unplanned maintenance compared with the best-quality systems.
The quality issues emphasised in HelioVolta’s report echo concerns voiced earlier this year at PV ModuleTech USA, where multiple speakers addressed module quality problems in the US.
David Penalva, co-founder and CEO of HelioVolta, remarked that quality in solar has moved beyond being a matter of opinion and is now a figure that can be written into a contract.
Additionally, this year’s edition of the report provides a breakdown of quality trends by PV system type. Canopy systems, accounting for just 3% of all systems HelioVolta inspected, recorded the lowest issue rates. No canopy system had a critical issue, although 59% contained major issues.
Interactive table based on the Store Companies dataset for this report.
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