Embedded Files
As renewable energy technology improves with time, existing PV systems will be retired or upgraded. Some experts share that some of the most valuable PV sites in Europe may be currently occupied by low-performing PV operations due to the age and relative immaturity of technology.
The economic prospectus for a PV project contemplates an initial investment followed by a long performance period. Life cycle cost standards specify a maximum of 25 years for electrical equipment (10 CFR 436), but there is evidence that PV systems could last longer and some industry guidance suggests a 40-year analysis period (EISA 2007). Asset owners and managers will have several options at the end of the performance period depending on the contractual commitments to the landowner and regulatory requirements of the authority having jurisdiction. These options include:
Refurbishing the system and extending its life (e.g., 25 years to 40 years)
Extending the term of the performance contract or PPA
Selling the system at fair market value
Removing the system and restoring the site to an earlier condition or other use
Key considerations include technological advancements, energy prices, and land use.
Page updated
Report abuse