PPA Mechanics

O&M Under a Solar PPA: What the Provider Covers

One of the biggest PPA selling points is that operations and maintenance are not your problem. But the contract scope matters — here's what a well-drafted O&M annex typically covers.

What good O&M covers

• 24/7 remote monitoring of inverter, string and module-level output.
• Annual on-site inspection including thermal imaging.
• Panel cleaning where soiling losses exceed 3%.
• Inverter replacement (typically year 12-15) included in scope.
• String fault diagnosis and rectification within 48 hours.
• Performance ratio (PR) guarantee — typically 78%+ — with make-good payments if PR falls below.
• Insurance: property, public liability, business interruption tied to non-performance.
• REGO certificate administration and SEG export submission.

What's typically NOT covered

• Roof structural defects — that's the building owner's problem unless the PPA caused them.
• Vandalism or theft (covered by insurance but excess paid by off-taker in some structures).
• Force majeure events (storm damage above design wind load, flooding).

Performance ratio (PR) guarantee — read the small print

Most providers offer a PR guarantee of 78-82% averaged over rolling 12 months. If actual PR drops below, the provider compensates — usually by reducing the next quarter's tariff or paying make-good.

Watch for: (a) how PR is calculated (some providers use favourable methodologies); (b) what counts as a force-majeure exclusion; (c) measurement methodology (IPMVP Option B is the gold standard); (d) dispute resolution mechanism.