The future of solar depends on software and service

Despite some of the bumps the industry has gone through in recent years (see also: solar coaster), solar continues to grow. What this means in real terms is that installers are deploying ever larger systems, and the number of systems for which they are responsible post-commissioning is growing as well. In the United States alone, 5 million residential solar installations were added in 2024.

But these aren’t the installations of old. Today’s solar is data-driven, sophisticated, more powerful, and more asset-like than it has ever been. The industry’s core products have historically been hardware: modules, inverters, power management and conditioning components, and other equipment. But solar technology is producing increasingly large amounts of data, at ever finer resolutions, and only software can help installers and asset owners unlock the value therein.

At the same time, the constant struggle between ever more sophisticated technology and the downward pressure on levelized cost of electricity, or LCOE, means that solar design, installation, and maintenance requires well-trained personnel and helpful vendors. The design, installation, and maintenance of even modest C&I systems now requires the labor, service, and products of many companies to come together in perfect harmony. 

The solar industry must embrace advanced software, a service-oriented approach, and open collaboration to ensure quality, efficiency, and long-term growth, from commissioning to operations and maintenance.

The role of software 

Exceptional solar hardware will not meet its full potential without robust software. Given the overwhelming volume of data modern solar and solar-plus-storage systems can now generate, solar installers and system owners cannot efficiently parse or use that data without tools. They must embrace advanced data models and analytics, which is only possible with increasingly sophisticated and capable software.

This applies to all phases of the solar development lifecycle, from system planning, installation, commissioning, and operations and maintenance, especially as the number of projects in installers’ portfolios grows. Installation and commissioning support functions, detailed remote monitoring, and intelligent solar portfolio management tools are among the most powerful software functions for solar installers.

The challenge, however, lies in the oversight of issues that escape routine operational checks. This is where advanced software, or in this case, remote monitoring, comes in.

Consider a scenario in which solar output falls below anticipated levels. Through the adoption of advanced software, installers can promptly detect, analyze, and diagnose issues remotely. This proactive approach allows for scheduling service calls before small inefficiencies impact the end user. Relying on operational data alone can obscure subtle anomalies that, if left unaddressed, could lead to performance degradation and even precipitate issues with performance-based contracts.

In other cases, an installer would be able to tag a certain device model — or all equipment from a certain manufacturer — to compare their performance or behavior in the field to those from other vendors. As such, installers can determine which equipment or manufacturers deliver which combinations of price, performance, features, and reliability for customer projects. With this empirical field data in hand, sales teams can confidently explain why a quote includes what it does, and what the tradeoffs associated with other choices could be.

When complemented by module-level resolution with MLPE, sophisticated software and active monitoring systems emerges as a robust approach that goes beyond merely validating operational parameters. This combination can enhance solar production and O&M performance while providing essential first-responder safety. Beyond that, advances in software will improve all aspects of solar: more efficient planning, design, and installation, more innovative features, better control and flexibility, and much more efficiency and energy output. 

Toward a service-oriented, team sport culture

In the next five years, the solar industry will inevitably consolidate around a select few hardware manufacturers that will deliver ever more comprehensive solutions. Consumer and installer preference for all-in-one systems will contribute to this shift — but its specific timeline and consequences will be fundamentally driven by what fully integrated software each manufacturer can deliver, and who offers outstanding service.

The solar industry is evolving towards a culture of continuous improvement across every link in the value chain. While quality assurance and reliability testing have historically been confined to hardware manufacturing, the competitive landscape has changed things.

The target customers for the solar industry range from rural homeowners to urban affordable housing dwellers, and from factory managers to huge utility solar farms. While each will have unique requirements, there is a compelling case for bettering both software and service for them all.

Even at a mid-sized commercial solar project, equipment from half a dozen companies is deployed, a seventh company designs the system, an eighth installs it, a ninth maintains it, and a tenth owns it. In many cases, a dozen companies must come together for a high-quality and reliable solution. While each company is contractually bound to do their part properly, a single issue regardless of origin can sour the impression a customer has of solar. 

If a single link in that value chain fails, it will cast a shadow on solar as a whole. As we continue to innovate and improve, the collaboration between solar hardware manufacturers, software developers, installers, and service providers will be essential. 

This shift towards a more integrated, software-driven, and service-centric model is the future of solar energy. By prioritizing collaboration as well as quality in design, installation, equipment, and service, we collectively propel the growth and success of solar.

JD Dillon is the chief marketing officer at the solar system company Tigo Energy, and helped take the company public in May 2023. In addition to the solar industry, Dillon’s experience spans the U.S. Armed Forces, semiconductors, and solid-state drives. The opinions represented in this contributed article are solely those of the author, and do not reflect the views of Latitude Media or any of its staff.