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© Copyright 2016, First Solar, Inc.
OUTLINE:
Introduction
First Solar background
O&M costs – History
O&M costs – Present day
O&M costs ‐ Future
©Copyright 2016, First Solar, Inc.
Introduction
• Paul Williams, Reliability engineer, CRE, BSEET electronics
• 30+ year experience in quality and reliability at high tech companies in semiconductor, computers 
and power generation
• Jointed First Solar in 2011 ‐ Originally hired into the O&M group
• Began working on upgrading and building new capabilities for O&M’s Excel based cost model
• Initiated Reliability Block Diagram (RBD) modeling of components, subsystems and array level 
• Energy Availability prediction
• Cost of ownership – Maintenance costs
• Transitioned into the systems reliability engineering group 2012
• Continue to support the O&M Energy and cost models
• Began working with power plant engineering to optimize systems topologies 
• Maximizing energy availability
• Minimizing the Total Cost of Ownership (TCO)
• Evangelizing and driving the concept of Levelized Cost Of Energy (LCOE)
©Copyright 2016, First Solar, Inc.
First Solar Background
• One of the largest thin film solar module manufacturers and 
suppliers in the world
• >100M modules produced
• Over 10 gigawatts installed worldwide
• Over 5 gigawatts under O&M Monitoring
• First Solar has developed, financed, engineered, constructed, and 
operating some of the world’s largest PV power plants in 
existence.
• Utility‐scale generation
• Commercial & industrial
• Community solar
©Copyright 2016, First Solar, Inc.
©Copyright 2016, First Solar, Inc.
OPERATION &
MAINTENANCE
PROJECT 
FINANCE
PROJECT 
DEVELOPMEN
T
ENGINEERING 
& PLANT 
OPTIMIZATION
GRID INTEGRATION
& PLANT CONTROL
SYSTEMS
PROCUREMENT 
& 
CONSTRUCTION 
ADVISEMENT
BALANCE OF 
SYSTEMS
TECHNOLOGIES
ADVANCED PV 
MODULES
The Solar Value Chain
Development
Partner
Construction
Partner
PROJECT 
FINANCE
PROJECT 
DEVELOPMEN
T
OPERATION &
MAINTENANCE
PROJECT 
ENGINEERING
PROCUREMENT & 
CONSTRUCTION
SYSTEM 
ENGINEERING 
& PLANT 
OPTIMIZATION
GRID INTEGRATION
& PLANT CONTROL
SYSTEMS
BALANCE OF 
SYSTEMS
TECHNOLOGIES
ADVANCED PV 
MODULES
TRAINING AND SERVICES
Delivering The First Solar Advantage through Local Partners
AC Power Block—Configurable Power Generation Unit for developing a First Solar power plant
©Copyright 2016, First Solar, Inc.
O&M Costs – History
• O&M used an excel based cost model
• Relied on consultants to provide failure rate information
• IEEE Goldbook
• MIL‐217
• Estimated the repair times based on senior management’s “experience”
• Cost information provided from suppliers spare parts lists
• Only outputs were labor and parts cost estimates
• Could not comprehend any failure distributions other than exponential
©Copyright 2016, First Solar, Inc.
O&M Costs – Present Day
• BOS manufacturers do not use consistent methods to report predicted failure  
rate estimates. Information is typically MTBF based.
• Using Reliability Block Diagram modeling of Components, Subsystems and Array 
level 
• Energy availability prediction
• Cost of ownership – Maintenance Costs
• Getting suppliers to provide failure data is challenging
• Using failure distribution data based on our own field experience
• Using Accelerated Life Test (ALT) data for FS developed products
• Working with power plant engineering to optimize systems topologies 
• Maximizing energy availability
• Minimizing the TCO 
• Levelized Cost Of Energy (LCOE) starting to appear in Marketing and Sales literature.
©Copyright 2016, First Solar, Inc.
Reliability Block Diagram
©Copyright 2016, First Solar, Inc.
Inverter Availability – Prediction Estimates
©Copyright 2016, First Solar, Inc.
Field failure – Transformer Oil Leaks
Leak failure distributions 
for 3 transformer 
suppliers
Leaking was not included 
in early cost models –
Now it’s rate and repair 
costs are included
Field data drove supplier 
selection / preference
©Copyright 2016, First Solar, Inc.
Field Data ‐ DC Health Analysis – Failure Breakdown
Note: There are NO power degradation failures
Results from a large >100MW power plant during a regular DC health sweep
Recognition that Module Reliability (degradation) is not all there is to building
a solar plant for optimized costs.
©Copyright 2016, First Solar, Inc.
O&M Costs ‐ Future
• While important, module degradation is not all there is to building a solar plant 
for optimized costs. BOS components play a major role as well.
• LCOE and Total Cost of Ownership (TCO) becomes the driving quality metrics on 
which power plants are evaluated 
• FS Initiating an IEC work item proposal to standardize cost modeling inputs for 
improved prediction accuracy
• Standard defines a complete list of deliverables  for equipment suppliers to provide 
in order to be able to predict and trend the cost of ownership and LCOE models. 
Based on failure mode and distribution parameters rather than MTBF estimates.
©Copyright 2016, First Solar, Inc.
LCOE
LCOE is the lifecycle cost for investment in an electricity 
generation power plant.
Utility companies and financial institutions value projects on the basis of 
the lifecycle cost, generally through a measure known as Levelized Cost 
of Electricity (LCOE)
Development $
Construction $
O&M Costs $
Profit $
Taxes $
Etc. (cash flow) $
= LCOE 
($/kWh)
Understanding how 
LCOE is impacted by 
changes in the system 
allows First Solar to 
optimize plant designs 
(and System Solutions) 
that reduce LCOE most 
effectively
• Energy yield increase 
has the highest single 
impact on LCOE 
• $/watt is not the 
driving metric for 
investment in utility 
scale PV projects and 
PPA’s ($/kWh)
=
Net energy 
to be sold 
over the 
life of the 
investment
kWh
©Copyright 2016, First Solar, Inc.
First Solar AC Power Block 
Configurable PV Power 
Generation Unit for developing 
fully integrated utility‐scale  
power plants with the lowest 
LCOE 
• First Solar System and Services
• First Solar Energy Prediction 
Model 
• Energy Performance Guarantee 
©Copyright 2016, First Solar, Inc.
Creating enduring value by enabling a world 
powered by clean, affordable solar electricity.

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