Solar has no fuel bill, which leads many owners to assume it has no operating cost. It does. The annual number is modest, but a pro forma that leaves it out, or leaves out the inverter replacement that arrives around year 10 to 15, overstates returns.
NREL's Annual Technology Baseline uses about $21 per kW DC per year for commercial PV fixed O&M, covering asset management, insurance, site security, cleaning, vegetation, and component failures. On a 500 kW DC system that is roughly $10,500 a year. Utility-scale plants run lower: LBNL reports median O&M of about $11 per kW AC per year in 2024. The biggest single item to plan for is inverter replacement, which NREL's O&M guide estimated at $0.14 to $0.40 per watt depending on inverter type, so budget a reserve or buy an extended warranty.
O&M cost benchmarks
Public O&M data comes mostly from national laboratories, and it is measured in different units, so read the column headings carefully. Per kW DC counts module capacity; per kW AC counts inverter capacity, which is smaller. A system with a DC to AC ratio of 1.3 has a per kW AC cost 30 percent higher than its per kW DC cost for the same dollars.
| Source | Figure | Scope |
|---|---|---|
| NREL, Annual Technology Baseline 2024, Commercial PV | About $21/kW DC per year | Fixed O&M for a commercial system, based on modeled 2022 pricing (Ramasamy et al., 2022). Includes asset management, insurance, site security, cleaning, vegetation removal, and component failures |
| LBNL, Utility-Scale Solar 2025 Data Update | Median O&M fell from about $40/kW AC per year in 2012 to about $11/kW AC per year in 2024 | Reported O&M at utility-scale plants over 5 MW AC; newer plants report lower costs in early years, possibly reflecting narrower service scopes |
| LBNL, Benchmarking Utility-Scale PV Operational Expenses (2020) | Total levelized OpEx fell from about $35/kW DC per year for 2007 projects to about $17/kW DC per year for 2019 projects; the O&M component was $5 to $8/kW DC per year in many cases | Survey of industry professionals. OpEx includes O&M plus property taxes, land lease, insurance, and other costs |
Two conclusions follow. First, commercial systems cost more per kW to maintain than utility plants. They are smaller, spread across rooftops and carports, and do not get the economies of a technician stationed at one site. Second, the definition of "O&M" varies a lot. The LBNL survey found the narrow O&M component at $5 to $8 per kW DC per year, with property taxes, land lease, and insurance of similar total magnitude. When you compare an O&M quote to a benchmark, make sure both include the same things.