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Lessons Learned
Feb 2025 · 7 min read

Why Solar Projects Fail After Installation

Post-mortems from 60 failed or underperforming installations point to four recurring causes — none of them technical.

O&MGovernanceProcurement
Key takeaways
  1. 01

    Of 60 failures audited, only 8% had a root cause in equipment quality. The other 92% were governance, O&M, or procurement design.

  2. 02

    The median failure occurs 14 months after commissioning — exactly when warranty attention ends and no operator has been funded.

  3. 03

    Programs that ringfence O&M budget at the funding stage have a 5× lower 3-year failure rate.

The 14-month cliff

When we plot failure timing across 60 audited installations, a clear cliff appears at month 14. This is not coincidence. It is the point at which installer warranty visits end, donor reporting moves on, and no operating entity has been formally handed the asset. Systems do not fail because they break. They fail because no one is responsible for them.

92%
of failures rooted in governance, O&M, or procurement — not equipment
14 mo
median time to first critical failure
lower 3-yr failure rate when O&M is ringfenced at funding stage

Four recurring causes

1. No named operator

Handover documents list a ministry or NGO as the recipient, but no individual has performance obligations. When a fault occurs, escalation has no address.

2. O&M unfunded after year one

Capital budgets cover a 12-month warranty. After that, there is no line item for the technician visit, the cleaning crew, or the spare inverter board. The system continues to run on residual capacity until a single component fails and stops it entirely.

3. Procurement optimised for unit price

Lowest-bid tenders select vendors who have priced out the O&M reserve, the local technician retention, and the spares kit. The system arrives complete and degrades on schedule.

4. No measurement after handover

Without independent M&E, underperformance is invisible until total failure. By that point the recoverable window has closed.

— Engagement

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