In this age of information, smart investors expect to stay informed regarding the performance of their investments. This is as true for the stock market as it is for solar PV systems. Long gone are the days when system owners were content with simply believing that their installed PV systems will generate solar energy for the next 20 to 25 years without wanting to know about ongoing performance. Today, they want real-time, easy-access insight into their systems; visualization of energy performance; knowledge of system health; the ability to report and share their output; and, of course, to be able to easily calculate system revenue. As the industry moves toward more advanced functionality and greater connectivity of PV to the cloud and smart grid, residential-scale inverters are increasingly able to meet these demands.

But it is not just system owners who think that estimating PV production based on the past month’s electric bill is insufficient. Third-party ownership (TPO) models are also driving the need for real-time information about system production, and installers/developers want the information to be easily accessible. For example, with power purchase agreements, a type of TPO, the installer/developer needs to have precise measurements into system production in order to correctly charge the customer. In addition, because the billed amount is directly tied to the PV production, the ability to ensure that the system is producing its maximum energy is also key to maintaining profits. If there are any system issues, the installer/developer needs to be able to quickly and efficiently address the issue - both to reduce operations and maintenance (O&M) costs and to increase revenue from system uptime.

This brings us to the age of advanced inverter functionality. The inverter was originally named for its main function of AC-DC conversion, but its role has since expanded in the PV industry. Functioning as the brain of the PV system, advanced inverter solutions are now responsible for communications, monitoring, smart energy management, grid interaction, safety and more.

But what is the brain without the entire nervous system working in tandem? Module-level power electronics (MLPE) create a network of control and intelligence operating behind the modules to provide module-level maximum power point tracking, emergency shutdown, design flexibility, and insight into system health. MLPE devices, such as power optimizers, track module-, string- and system-level data on system production, enabling greater resolution into system performance. However, enabling remote access to the data is just as important as the data itself - and this is where the cloud comes in.

“The cloud” is a fairly new high-tech term that is used to describe information being easily accessible and available while not having to save such material on a personal computer or local server. Instead, the material is saved in what is called the cloud. An example of this is social media or any type of file-storage websites. Technically, the data is stored in computers somewhere in the world, but the accessibility of the information is key for it being in the cloud. The cloud has become increasingly relevant to the PV industry as the quality and quantity of information on PV production and functionality has grown. This means that the information must be transmitted from the PV site to the cloud.

The first link in the communications chain is from the module to the inverter. For instance, with some power optimizers, the communications from the module to the inverter is conducted via power-line communication, so no special wiring is required. This means that if there is power, there is also communications. However, the link from the inverter to the cloud can be more complicated. Typical communication strategies require installers to enter the premises for setup and then for the system owner to maintain that connection through a router throughout the system’s lifetime. Both of these requirements can be burdensome.

Wi-Fi, ZigBee and newer cellular-based strategies eliminate the need to access the premises. Cellular-based communication solutions can also remove the requirement for the system owner to maintain connectivity and can be useful in locations without Internet access or broadband infrastructure. With the cellular option, the inverter contains a cellular card just like a mobile phone and can connect directly to the cloud through a mobile network. This allows a simple communication setup and virtually no maintenance for the system owner. The data can be uploaded and saved on cloud-based monitoring platforms and then accessed through any device that has Internet connectivity. System owners and installers alike can now see high-resolution system performance via computers, smartphones or tablets.

Having a reliable chain of communications from the inverter to the cloud can unlock a suite of possible options. For example, by simply adding an electricity meter, system owners can watch their consumption patterns. When paired with a battery, system owners gain detailed insight into energy stored, consumed or fed into the grid. In fact, in the near future, we may even see smart inverters connected to the cloud become comprehensive energy managers for homes and buildings. This would require device control in the building, but this is a natural progression for the PV industry.

Connectivity also provides control, remote access, and efficiency for the installer, developer, or O&M provider. Inverters can be upgraded and programmed remotely, and troubleshooting can be implemented from afar rather than requiring an on-site visit.

Future grid interaction may even require connectivity. A good example of such a requirement is Phase 2 of Rule 21 in California, which describes the need for capabilities and standards for inverters in order to allow communications between the grid operator and distributed energy resource. This PV interconnectivity, in combination with cloud computing, could potentially change the landscape of power generation. Instead of the traditional power generation, which is built on large single sources for energy production and storage, future power generation could be based on a decentralized model with mini-power stations. Although this would require advances in communication infrastructure, inverter controls, computing power and smart inverter technology, cloud computing is a key element in this advancement.

So, even though we are in an industry that is dependent on sunny days, it turns out that the cloud plays an important role in solar’s advancement.

Lior Handelsman founded SolarEdge in 2006 and currently serves as the power optimizer, solar inverter and monitoring solutions company’s vice president of marketing and product strategy.