Is O&M Having Its Moment Much Like Customer Success in Tech?

Oct 7, 2024

In the rapidly evolving solar industry, Operations and Maintenance (O&M) is becoming increasingly vital. Much like the technology sector’s rise of customer success, solar O&M is positioned to take on a larger, more strategic role in ensuring the long-term viability and profitability of solar projects.

For years, the solar industry has been focused on growth. Companies prioritized building more projects with "power" being the key metric. Even often driven by aggressive financial models that didn’t always account for real-world performance. However, as the industry matures, it's clear that just like in technology, building is only the first step. Sustaining that growth and ensuring ongoing performance are critical—enter O&M.

In the technology world, especially during the early 2000s, the emphasis was all about "grow, grow, grow." Companies focused heavily on new sales, onboarding new customers, and scoring revenue points. However, many companies quickly realized that acquiring customers was only half the battle. As Chief Customer Officers and customer success teams rose in prominence, more focus was given towards ensuring customers found value in the product. This didn't necessarily mean "adoption" as adoption didn't always translate to value, and to get renewals, value was key. Companies realized that retention, not just acquisition, was key to long-term success. After all, it was difficult for technology / SaaS companies to build valuable companies with the "leaky bucket".

A similar shift is happening now in solar. As more projects come online or are even decades old, O&M teams are often left "carrying the bag" for what was marketed and sold to investors and buyers. Many projects have not performed to the expectations set by initial financial models, and O&M teams are tasked with addressing the performance gaps. Much of this comes down to level-setting expectations and providing education. These O&M teams answer the tough questions when systems underperform and educate stakeholders on the importance of post-COD maintenance. Solar installations aren't a "set it and forget it" investment—it can be low, but it's not zero. Ongoing monitoring and maintenance are essential to optimize returns over the lifecycle of the project.

Further, O&M teams are akin to customer success teams in that they represent the voice of the customer and the project. They provide crucial insights on how well projects are performing, why they might be underperforming, and how issues can be addressed. They understand the quality of construction, the reliability of components, and the nuances that can make or break a project over the long term. For example, while financial models might account for replacing an inverter three times over a 25-year project lifespan, but O&M teams can inform finance of frequent failures and adjust expectations accordingly.

Just as customer success in technology informs product development and sales strategies, solar O&M informs future project planning, component selection, and even financial forecasting.

O&M teams are the unsung heroes, ensuring that the promises made during the sales process are delivered through ongoing project performance. As the solar industry continues to mature, O&M will play an even larger role, helping owners maximize the value of their investments over time.

I’m excited for O&M—both as an industry and for the professionals within it. It’s a growing and necessary function that reflects the increasing maturity of organizations and the solar industry as a whole. I’ve always loved selling, but I have a soft spot for customer success—mainly because it stays close to the customer for far longer.

What do you think... Is O&M rising to greater prominence? What excites you most about O&M?

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© LCOE.ai, Inc. 2024

© LCOE.ai, Inc. 2024

© LCOE.ai, Inc. 2024