Reveal the Full Potential of Your Solar + Storage Investment! Don't let hidden costs dim your project's shine. Technical Debt is the gap between the high-quality solar system you paid for and what you received—filled with unforeseen design and installation shortcomings. Before taking ownership, illuminate these shadows by identifying and rectifying any issues, ensuring your solar asset reflects its expected value.
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In the world of solar projects, there is a hidden cost that often goes unnoticed. The cost of technical debt. Technical debt is the price paid by system owners for decisions made during engineering, procurement or installation to save time or money. It's the gap between the value expected and the value You actually receive a metaphorical debt that needs to be paid off.
Let's say you expect that a solar system designed and installed to industry best practices, but you discover hidden shortcomings. Technical debt is the cost to resolve those issues. Addressing technical debt is crucial. The best solution is to identify and eliminate issues before taking ownership of the solar asset. Think of technical debt as a liability similar to financial debt with an interest expense that affects your bottom line until all issues are resolved on the balance sheet.
Technical debt results in interest expenses on the profit and loss statement manifesting as decreased generation revenue and increased operating expenses. But how is technical debt caused? It can result from poor equipment selection, subpar design and engineering, installation mistakes, safety risks, lack of documentation and inaccurate revenue projections. So how does technical debt affect you? It's a hidden transfer of costs from the EPCs budget to the owner's operating expenses, reducing operating profit.
Implementing a quality assurance plan. A robust procurement process. High-quality installers. Skilled engineering firms. Third-party reviews and a preventative maintenance plan can prevent technical debt. If you want to eliminate technical debt and its ongoing interest expense, contact Pure Power. Our owners Engineering Services. Ensure your financial model stays robust and your solar project succeeds.