How to assess the maturity of photovoltaic projects in Brazil?

The introduction of Normative Resolutions nº482/2012 and 687/2015 by ANEEL (National Electric Energy Agency) triggered a revolution in the electrical energy sector in Brazil. At that time, the country was in the early stage of developing photovoltaic projects, with a shortage of knowledge and experience in this field.

It was in this context that the teacher Marcelo Gradella Villalva, from UNICAMP (Universidade Estadual de Campinas), played a fundamental role in creating courses that marked the beginning of the preparation of competent professionals aware of the importance of developing photovoltaic system projects with quality and safety.

The first photovoltaic projects in Brazil were predominantly functional, meeting the basic need for solar energy generation. However, over time, this industry has undergone significant evolution towards maturity. It is important to recognize that this journey has not been without challenges.

Many professionals still underestimate the importance of offering low-risk, high-efficiency projects to their clients. This bold challenge requires a constant commitment to innovation and overcoming obstacles.

A quality of photovoltaic projects is crucial, not only to ensure customer satisfaction, but also to promote energy efficiency and environmental sustainability.

Let's explore this winding journey towards maturity of photovoltaic projects in Brazil. The maturity of photovoltaic projects covers several aspects, from engineering to installation and maintenance.

With the increase in demand for solar energy, companies and professionals in the sector have had to improve their skills and knowledge to face technical and regulatory challenges. Furthermore, the need to integrate photovoltaic systems into the existing electrical grid brought additional complexities that needed to be mastered.

A education and training played a central role in this process. Courses offered by institutions such as UNICAMP have been fundamental in training qualified professionals, capable of designing and implementing high-quality photovoltaic systems. Furthermore, the spread of good practices and quality standards has been essential to raising the level of the industry as a whole.

As Brazil advances towards the maturity of photovoltaic projects, it is essential that everyone involved in the sector recognizes the importance of excellence and the constant search for improvements.

Solar energy will play an increasingly significant role in the country's energy matrix, contributing to the reduction of carbon emissions and the promotion of a more sustainable future. Therefore, investing in the quality and efficiency of photovoltaic projects is an essential step on this journey towards a more mature and responsible electrical energy sector.

The concept of maturity in photovoltaic projects

The maturity of photovoltaic projects is a crucial metric that assesses the degree of development and excellence achieved in photovoltaic system projects.

Maturity assesses not only the technical quality of projects, but also the project's ability to effectively meet the needs defined by the client in a safe, economical, efficient and consistent way.

However, it is important to note that, in practice, it is more appropriate to assess the maturity of a project company, since individual projects have defined beginnings and ends, while the company's maturity persists and evolves over the course of the various projects that a company company prepares.

Maturity can be analyzed from the following perspectives

Quality

Quality plays a central role in the maturity of photovoltaic projects. It is linked to the use of engineering principles in an ethical and conscious manner, placing technology at the service of improving the quality of life of human beings and their environment.

This includes properly sizing components, selecting equipment, considering safety standards and regulations, as well as integrating advanced technologies such as automation and control systems. Companies that understand the importance of quality approach projects from multiple perspectives.

The design team works with the commercial (taking into account customer requirements), execution (assessing the impact on project implementation) and operations and maintenance (ensuring reliability and support) teams. This multidimensional approach contributes to continuous quality optimization;

Risks and Resilience

Another crucial aspect of the maturity of photovoltaic projects is the ability to anticipate, mitigate and respond to risks. During the implementation of a project, unforeseen events may arise that require a quick and effective response. Mature companies are able to identify these risks in advance and develop mitigation strategies. Furthermore, they are resilient, that is, they can adapt and recover effectively from unexpected challenges;

Financial analysis

Maturity is also intrinsically linked to comprehensive financial analysis. This involves evaluating investment, operational and maintenance costs in relation to the benefits and savings generated by the project. The ultimate goal is to offer the customer a solution that not only meets their energy needs, but also provides the best possible financial return;

Consistency

Consistency is an important pillar of maturity. Refers to the ability to maintain a high standard of quality and attention to detail in each project. This ensures predictable results and conveys confidence to the client. Mature companies establish rigorous guidelines and effective processes to ensure each project meets the same high standards;

Continuous Evolution

Finally, the maturity of photovoltaic projects is also related to the ability to evolve. This means adapting to new equipment and market requirements, implementing continuous improvements in the solutions developed.

To maintain this capacity for evolution, it is essential to invest in continuous training and promote a constant learning process. This allows companies to identify project optimization opportunities and remain at the forefront of the solar industry.

In summary, the maturity of photovoltaic projects is a complex metric that goes beyond simple technical analysis. It encompasses quality, risk management, financial analysis, consistency in delivery and capacity for evolution.

The importance of maturity in photovoltaic project companies

Since the publication of Normative Resolution No. 687/2015 by ANEEL, the photovoltaic systems sector in Brazil has witnessed extraordinary growth in the number of integrating companies. However, this quantitative growth was not reflected correspondingly in the average quality of photovoltaic projects in the country. This is largely due to the lack of technical knowledge and ethical responsibility on the part of most of these companies.

Technical problems such as incorrect sizing, faulty installations and the use of inappropriate equipment have been identified as recurring issues. Furthermore, almost all accidents involving photovoltaic systems are attributed to design and execution errors committed by companies not qualified to carry out these services.

For potential customers, the task of discerning between trustworthy companies and those offering low-quality solutions is a challenging task. Due to the difficulty in evaluating suppliers, many customers end up opting for the lowest price criterion when analyzing the proposals they receive.

Recently, ABSOLAR (Brazilian Association of Photovoltaic Solar Energy) introduced a certification program for companies operating in the photovoltaic energy sector. This initiative aims to identify and recognize companies that have effective internal control processes, invest in technical training and are in compliance with current regulations and legislation.

ABSOLAR certification represents a significant step towards providing more confidence to customers of companies that have received this certification, as it indicates a commitment to quality and ethical standards. However, even with ABSOLAR certification, the question arises of how to differentiate the different companies that operate in the same segment. This differentiation can be achieved through classification by degree of maturity.

This approach classifies the stage of development and reliability that each company is in, providing benefits for both customers and the companies themselves. For clients, classification by maturity level offers the opportunity to assess the risks associated with choosing a company at a certain maturity level.

More mature and experienced companies tend to present fewer risks compared to those in the early stages of development. This allows customers to make more informed decisions that are aligned with their needs and expectations.

Therefore, it is essential that customers are aware of these classifications and consider not only the price, but also the quality and maturity of the companies when choosing a partner for their photovoltaic projects. For companies, classification by maturity level provides a clear view of their relative positioning in the market.

Understanding what level of maturity they are in relation to the competition can be essential for making strategic decisions. Companies can identify areas for improvement, set realistic growth goals, and invest in training and process improvements as needed.

Companies seeking maturity in this sector are positioning themselves to offer effective and sustainable solutions to customers, while contributing to the continued growth of solar energy as a clean and renewable energy source. Therefore, the search for maturity is not just an objective, but a necessity for companies that want to prosper in the solar energy market.

The maturity stages of photovoltaic project companies

We can consider five stages in the maturity of photovoltaic system project development:

Ad hoc

This is the initial level of maturity in the photovoltaic systems sector, at which many small companies in this area find themselves. These companies, in general, do not have any qualified professionals and often adopt an imitative approach to what they observe without fully understanding the reasons behind each technical detail. This results in low-cost, high-risk projects for clients due to a lack of solid technical knowledge.

Projects prepared by companies at this stage tend to be very simple, but incomplete and often full of technical errors due to a lack of technical knowledge. These companies position themselves in the market as low-cost suppliers, which results in reduced profit margins. As a consequence, they have difficulty investing in training and improvements, which perpetuates the lack of technical qualifications.

The lack of maturity at this stage is also reflected in the financial management of companies. The absence of solid financial planning and the lack of investment in technical improvements can lead to cash flow difficulties. This, in turn, can have a negative impact on the long-term sustainability of these companies, leading to many of them having a short lifespan in the market.

To overcome this stage and evolve to more advanced levels of maturity in the photovoltaic systems sector, it is essential that these companies invest in technical training, adopt best management practices, and seek in-depth understanding of all stages of the process, from design to the installation and maintenance of photovoltaic systems.

Furthermore, the search for strategic partnerships and improvements in financial management are fundamental to ensuring sustainability and long-term growth in the solar energy market.

Standardized

At the second level of maturity, which we call “Standardized,” companies demonstrate a greater awareness of the importance of following national legislation and standards. At this stage, it is common for organizations to have the participation of an employee who has technical training, which represents an improvement in relation to the previous level, called “Ad-Hoc”.

However, despite this improvement, companies still face significant challenges. A striking feature at this stage is that, although there is a greater awareness of the need to adhere to standards, technical knowledge is still limited.

This can create false confidence, leading professionals to believe they have deeper technical knowledge than they actually do. One of the main challenges faced by companies at this stage is the number and complexity of standards relevant to their operations.

A lack of complete understanding of these standards can result in projects that, although showing technical improvements compared to the “Ad-Hoc” stage, still have many errors and inconsistencies. It is important to highlight that, at the “standardized” level, engineering standards and principles are only partially fulfilled. This means there is room for substantial improvement in terms of compliance with regulatory requirements.

Another critical aspect to consider is that this stage still poses a significant risk to customers. Projects can face delays and security issues due to gaps in regulatory compliance. Furthermore, companies face internal management difficulties due to inefficient processes and inconsistency in results.

Although this stage is already an improvement in relation to the “Ad-Hoc” stage, there are still challenges to be overcome, including the need to deepen technical knowledge, improve compliance with standards and improve the efficiency of internal processes.

Organized

At this maturity level, companies are at a stage of development where they are beginning to take significant steps toward organization and efficiency. A distinctive feature of this stage is the definition of clear processes and the implementation of internal disciplines. Companies recognize the importance of having well-structured systems to guide their operations.

One of the main investments at this stage is in training. Companies realize that well-trained teams are essential to execute processes consistently and efficiently. This leads to an overall improvement in the quality of projects, which in turn reduces risks for customers. Customers begin to trust companies' deliveries more at this stage, as they realize that there is a solid foundation of processes in place.

However, it is important to note that this stage also presents challenges. As companies invest in training and implementing internal processes, costs increase.

Efficiency has not yet reached its maximum potential, making it difficult to balance revenues and expenses. Companies need to find ways to optimize their processes and ensure that the long-term benefits outweigh the initial costs.

Managed

At this stage, companies are at a level of maturity that goes beyond simple process optimization. Here, they start to complement the improvements made in the previous stages with the implementation of control metrics and an effective activity management system.

One of the distinguishing characteristics of this stage is the ability to financially manage the company in a more strategic way. This means that organizations can plan their investments and expenses more accurately, making informed decisions based on concrete data.

Furthermore, projects carried out at this stage tend to be more consistent and of better quality. The company gains a deeper understanding of its processes and begins to implement continuous improvements more effectively.

The automation of routine tasks and the adoption of data analysis technologies play a crucial role in this advancement.

Optimized

This fifth and final level of maturity represents the pinnacle of efficiency and effectiveness. At this stage, companies are fully committed to continually improving the technical quality of their projects and internal processes, which results in a series of notable benefits.

A distinctive feature of this level is the close collaboration between designers and diverse teams, including commercial, budgeting, facilities and O&M (Operation and Maintenance) teams. This comprehensive collaboration allows for a 360-degree view of the project, optimizing its preparation and control.

Project portfolio and project program management is a common practice at this stage, allowing the assessment of resource availability and interdependencies. This leads to adequate sizing of each team and coherent objectives across the company. Optimization is not just limited to resource management, but also encompasses maximizing project quality and cost predictability.

This translates into a drastic reduction in risk, as teams are operating in a highly controlled and efficient environment. The company is also able to optimize costs in all areas, becoming more competitive in the market.

It is important to highlight that, as the level of optimization is based on a continuous search for excellence, it is less influenced by external factors. This means that companies that reach this stage have a solid foundation that is resistant to external disturbances, such as market changes or economic fluctuations.

Business ecosystem for photovoltaic systems

To understand the challenges that companies face in improving their maturity, it is important to understand the ecosystem in which they find themselves. This interconnected network of companies plays diverse and crucial roles, contributing to the development, implementation and maintenance of efficient and sustainable photovoltaic systems

Customers

Customers are the starting point of any photovoltaic system project. They seek to reduce their energy costs and adopt more sustainable energy sources. However, most clients do not have the technical expertise in-house to adequately evaluate proposals.

This makes them vulnerable to poor supplier selection decisions. Therefore, it is crucial that companies in the industry provide solid technical guidance and transparent information to help customers make informed decisions;

Owner Engineering Companies

These companies act as intermediaries between customers and development and engineering companies. Its main objective is to reduce risks for customers by analyzing proposals, validating projects and monitoring the implementation of photovoltaic plants.

This technical expertise plays a key role in ensuring that projects are successful and meet customer needs. This service can be provided in replacement of, or in addition to, the client's internal engineering team;

Financing and Investment Companies

Although the implementation of a photovoltaic energy system often offers attractive returns on investment, the customer does not always have the financial resources, or the interest, necessary to cover the initial costs. Financing companies and investing companies play a vital role in providing capital and offering options to make projects viable. Without the existence of these companies, many photovoltaic projects would not get off the ground;

Development and Engineering Companies

The heart of the ecosystem is made up of development and engineering companies. These are the companies that transform customers' energy needs into concrete, appropriately sized and planned solutions.

Using their technical knowledge and market experience, these companies prepare detailed designs, make accurate calculations and provide guidance to installation teams. Its ability to balance customer needs with solutions available on the market is fundamental to the success of any photovoltaic project;

Photovoltaic Plant Installation Companies

These companies are responsible for turning projects into reality. With highly trained and qualified teams, they ensure that photovoltaic plants are installed according to specifications and within established deadlines. In addition, they often also negotiate the purchase of supplies, managing costs and deadlines;

Photovoltaic kit distributors

Because many of the essential components of photovoltaic systems, such as photovoltaic modules and inverters, are manufactured abroad, companies that import and distribute these components play a vital role in the supply chain. They directly influence the selection of the main components used in each project, contributing to the efficiency and performance of the systems;

Manufacturers and distributors of components and equipment

The solar energy industry relies on a wide variety of components, from the simplest, like connectors and labels, to the most complex, like power input cabinets and solar tracking systems. Manufacturers and distributors play a crucial role in providing high-quality products that ensure the safety and performance of photovoltaic systems;

Testing and commissioning companies

To ensure quality and compliance with standards, testing and commissioning companies come into play. They conduct visual analyzes and measurements in the field, ensuring that the systems are installed in accordance with project specifications and current standards. Your final report certifies that everything is as planned, which is essential for the safety and efficiency of the systems;

Operation and Maintenance Companies

After photovoltaic systems are energized, O&M companies play a vital role in monitoring performance and carrying out preventive and corrective maintenance operations. This ensures that systems continue to operate efficiently throughout their useful life, providing the expected return on investment;

Electricity distributors

In the context of “on-grid” systems (connected to the electrical energy network), electrical energy distributors (concessionaires, permit holders and authorized companies) play an essential role.

These systems depend on connection to the distributor's distribution network. Failure to anticipate demand for connections can cause significant delays. Therefore, effective collaboration with distributors is crucial to ensure the smooth integration of photovoltaic systems with the electrical grid;

Education and training companies

To increase the maturity of companies in the solar energy sector, training is essential. Education and training companies play an important role in developing the knowledge and technical skills of teams involved in photovoltaic projects. This helps maintain quality and innovation in the sector;

Sectoral organizations and associations

Finally, sectoral organizations and associations play a regulatory and supervisory role. They represent the interests of professionals in the sector and the general public, ensuring that companies act in accordance with current regulations and legislation.

They also play an important role in holding professionals involved accountable for any behavior not in line with ethical and legal standards.

Challenges for implementing project maturity

The search for maturity in photovoltaic projects in Brazil is a challenging objective, full of obstacles that companies in the sector face along this path. Below, we will explore some of the main barriers that solar energy companies face and how to overcome them, thus contributing to the sustainable growth of this vital sector for the country.

Regulatory and Bureaucratic Barriers

One of the main and persistent barriers that photovoltaic energy companies face is the complex regulatory and bureaucratic environment, which is constantly evolving.

In Brazil, legislation related to solar energy is made up of a series of standards, decrees and regulations that frequently undergo significant changes. These changes can have a profound impact on the operations and strategies of companies in the sector.

Volatility in the regulatory landscape often requires companies to stay on top of updates and quickly adapt to new guidelines. This may involve reviewing and modifying designs to adapt to new standards or looking for alternatives that comply with the latest regulations.

Furthermore, the process of obtaining licenses and authorizations to install photovoltaic systems can be time-consuming and complicated due to constant changes in requirements.

Regulatory complexity also increases companies' operating costs, as it is often necessary to turn to legal professionals and engineering consultants to ensure compliance and mitigate legal risks. Regulatory uncertainty can affect long-term planning, making it difficult for companies to make sound strategic decisions.

Training and Continuous Training

Another challenge faced by companies in the search for maturity is the training and training of their team. As companies progress through the maturity stages, it is crucial that their professionals are up to date with the latest technologies and industry best practices.

This requires substantial investment in training and development, as well as the creation of an organizational culture that values continuous learning. However, many companies, especially smaller ones, may find it difficult to allocate resources for this training. Many of them operate in a market with tight margins, where every penny counts, making investment in training an additional challenge.

Resistance to change

Resistance to change is a common challenge in companies across all sectors, and it is no different in the solar energy sector. As companies seek to adopt more sophisticated and effective processes, they may encounter internal resistance from employees who are accustomed to old practices.

Overcoming this resistance is essential to advancing on the journey to maturity. This can be achieved by creating an organizational culture that values innovation and continuous improvement.

Companies need to involve their employees in implementing changes by providing adequate training and clear communication about the benefits of new practices.

Risk Assessment and Strategic Decision Making

Risk assessment and strategic decision-making play a fundamental role in the journey to maturity in photovoltaic projects. Companies must be able to identify and mitigate potential risks in their projects, while making informed decisions about investments and expansion.

An effective approach to overcoming this challenge involves careful analysis of available data. Companies must invest in monitoring and data collection systems that provide accurate, real-time information about the performance of their projects. This will allow for a more accurate assessment of risks and the ability to take corrective action quickly.

Additionally, companies need to develop the ability to predict trends and anticipate future challenges. This can be achieved through market and scenario analysis, allowing companies to be prepared to face changes in economic and regulatory conditions.

Benefits of project maturity

The search for maturity in photovoltaic system projects offers a series of benefits that, fortunately, offset the challenges faced during the implementation of an evolution program in this area. These benefits cover different aspects of the business and contribute to the long-term success of companies involved in this constantly growing sector.

Customer Satisfaction

Customer satisfaction is one of the fundamental pillars for the success of any company. When seeking maturity in photovoltaic system projects, companies strive to provide high-quality products and services that meet customer expectations.

This involves not only system efficiency and performance, but also long-term reliability and profitability. Satisfied customers tend to become brand advocates and recommend the company's services to others. This form of word-of-mouth marketing can be extremely effective and contribute to the organic growth of the business.

Cost Reduction and Increased Efficiency

Maturity in photovoltaic system projects is directly related to cost reduction and increased operational efficiency. As companies mature, they develop better defined and optimized processes for the design, installation and maintenance of photovoltaic systems.

This allows these companies to more accurately predict the costs involved in their projects, avoiding unpleasant financial surprises. Furthermore, the operational efficiency resulting from maturity leads to a more efficient use of resources, increasing profitability and market competitiveness.

Reputation and Credibility

Mature companies in the photovoltaic systems sector tend to enjoy a solid reputation and credibility in the market. Consistent delivery of high-quality projects, combined with the ability to meet deadlines and budgets, builds trust with customers and business partners.

This positive reputation can open doors to new business opportunities, strategic partnerships and investments. Investors and business partners are more likely to associate with companies with a solid reputation, which can drive growth and expansion of operations.

Future perspectives

The search for maturity will continue to shape the scenario of the photovoltaic project sector in Brazil. As this industry continues to evolve, several trends and challenges emerge, impacting companies operating in this market.

In this article, we will explore some future perspectives for the photovoltaic project sector in Brazil, highlighting opportunities and challenges that mature companies will face in the coming years.

Technological Innovations

One of the most important factors that will shape the future of photovoltaic projects in Brazil is the continuous advancement of solar technologies. Mature companies in the sector will be in a unique position to adopt and implement these innovations.

This may include adoption of new, more reliable or more efficient components, and emerging technologies such as energy storage systems, electric mobility support systems (electric vehicle charging), automation systems and “off-grid” solutions.

Market Expansion

The solar energy market in Brazil is constantly growing. The country has an immense potential for solar irradiation, which makes it an ideal location for investments in photovoltaic projects.

Mature companies have the opportunity to expand their operations to serve a growing customer base. This may involve searching for new projects in different regions of Brazil or diversifying the services offered to meet growing market demands.

The photovoltaic project sector is becoming a fundamental part of the Brazilian energy matrix, and mature companies can play an important role in this transformation.

Sustainability and Social Responsibility

As awareness of sustainability and social responsibility grows, mature companies in the photovoltaic project sector have the opportunity to stand out. Solar energy is a clean, renewable source of energy, and companies can emphasize their commitment to sustainable practices.

This includes not only generating clean energy, but also considering the entire life cycle of photovoltaic systems, including recycling solar panels at the end of their useful life. Additionally, many companies are engaging in social responsibility initiatives, supporting local communities and projects that promote access to clean energy.

Future Challenges

Although the prospects for the photovoltaic project sector in Brazil are positive, there are challenges that companies may face in the future. One of the main challenges is increasing competition as more companies enter the market in search of opportunities. This can put pressure on prices and reduce profit margins. Additionally, government regulations and policies are always evolving, which can affect how companies operate and expand.

Conclusion

The quest for maturity in photovoltaic projects is a challenging but rewarding journey. As companies advance through the maturity stages, they can deliver high-quality projects, reduce costs, increase efficiency, and build a solid reputation.

The solar energy industry in Brazil is constantly evolving, and mature companies are well positioned to lead this progress. As the sector grows, the quest for maturity will continue to be a crucial factor in the success of companies and the advancement of solar energy as a clean and sustainable energy source. The journey towards maturity of photovoltaic projects in Brazil is essential to guarantee the quality, safety and efficiency of the solutions offered to customers.

Classification by degree of maturity becomes a valuable tool both for clients who wish to assess the risks associated with a company and for companies themselves, who can make strategic decisions based on their relative positioning in the market. In this article, we explore the importance of maturity in photovoltaic projects, the stages of maturity and how they impact the quality and reliability of the solutions delivered.

As the solar energy sector continues to evolve in Brazil, the pursuit of excellence and maturity in photovoltaic project companies will play a crucial role in the future of energy efficiency and customer satisfaction.

The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of Canal Solar.