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Solar energy for industry

At industrial scale, energy stops being an expense and becomes a strategic variable. The design is driven by the load profile, not by the available roof area.

7 min read Updated on

In short

In industrial projects in Colombia, the design starts from the hourly load profile rather than monthly consumption: what decides profitability is how much generation is self-consumed. Scale enables ground-mounted installation, contracting models such as a PPA, and professionalised operation and maintenance, with the connection subject to the applicable regulatory framework.

Key points

  • The hourly load profile rules over total monthly consumption.
  • Self-consumption determines the return, not the installed capacity.
  • Scale changes the regulatory category and the connection procedure.
  • Ground and roof compete: each with its own cost and complication.
  • Operation and maintenance stops being optional and enters the budget.
  • Accelerated depreciation and the income tax deduction weigh on the model.

The load profile, not monthly consumption

In housing, average monthly consumption is enough to size a system. In industry that is insufficient and leads to expensive mistakes.

What determines the value of an industrial system is the overlap between the generation curve and the demand curve, hour by hour. A plant with three shifts, one with a single daytime shift and one with peaks concentrated first thing in the morning have very different returns with the same installed capacity.

That is why the first piece of a serious project is not a design but an analysis: an hourly consumption history, ideally covering a year, cross-referenced against the expected generation curve. That is what tells you which fraction is self-consumed, which is what is valued at the full tariff.

It is also worth looking at the demand-charge component of the bill, not only energy: for industrial users part of the cost depends on peak demand, and a solar system does not always reduce it if the peak falls outside daylight hours.

Connection and regulatory framework at scale

The Colombian framework distinguishes categories according to installed capacity and what is done with the energy. The small-scale self-generation that applies to a home or a shop is not necessarily the one that applies to a plant, and the threshold triggers different requirements, procedures and timelines.

Larger projects also bring in medium-voltage connection, the studies the grid operator requires and, depending on the case, coordination with the system operator. Determining which category applies is one of the first design tasks, and it shapes the entire schedule.

Do not extrapolate timelines or requirements from a residential project. Verify the framework in force for your capacity with the installer and with your operator before committing to commissioning dates.

Roof or ground

Industrial scale usually enables an option that does not exist in housing: ground-mounted installation. Each alternative has its own balance.

The roof makes use of surface that is already occupied, does not consume productive land and shortens the electrical run to the point of consumption. In exchange it is constrained by structural capacity, by the remaining service life of the sheeting and by the difficulty of doing maintenance at that height.

The ground allows orientation and tilt to be optimised, makes maintenance easier and enables bifacial modules over a light-coloured surface, where they genuinely contribute. In exchange it consumes land, requires civil works, fencing and surveillance, and lengthens the electrical run.

The decision is rarely purely technical: it depends on whether the land has a valuable alternative use and on the remaining life of the existing roof.

Contracting models

An outright purchase maximises the return and gives full access to the income tax deduction and the accelerated depreciation of Laws 1715 of 2014 and 2099 of 2021, provided the company is in a position to use them.

Leasing turns the investment into an instalment and changes the accounting treatment, useful when financial policy prioritises not tying up capital in non-productive assets.

The power purchase agreement — PPA — is common at this scale: a third party finances, installs and operates, and the plant buys the energy at an agreed price over a long term. It removes the investment and the operational risk, in exchange for giving up the asset and the incentives. The critical points of the contract are the term, the price indexation formula, the availability guarantees, what happens during a prolonged plant shutdown, and the conditions for early termination or purchase of the asset.

Professionalised operation and maintenance

On a residential system, maintenance is an annual inspection and the occasional clean. At industrial scale it is a function with its own budget.

It covers continuous monitoring with alarms, scheduled cleaning suited to the environment — a cement plant, an unpaved road or an agricultural setting soil panels far faster — thermography to detect hot spots in connections and modules, torque checks on the structure, and a stock of critical spares so a fault does not leave you waiting on import lead times.

It is worth agreeing indicators: minimum system availability, fault response time and expected performance ratio, with the calculation formula written down. Without that, the maintenance contract is an intention, not a commitment.

  • Continuous monitoring with alarms and periodic reporting
  • Scheduled cleaning suited to the plant's environment
  • Thermography of modules, connections and switchboards
  • Torque checks and inspection of structure and anchors
  • Stock of critical spares and replacement lead times
  • Contractual availability and response-time indicators

What the prior technical assessment requires

Before committing capital, an industrial project goes through a review that does not exist at smaller scales.

On the electrical side: load profile analysis, a study of the connection point, an assessment of harmonics and power quality if there are variable-speed drives or non-linear loads, and a review of protection devices and coordination. On the civil side: structural capacity, wind loads for the area and, on the ground, a geotechnical study.

And on the risk side: what happens to output if the plant stops for scheduled maintenance, how that affects the financial model, and what insurance cover protects the installation against hail, wind, fire or theft. These are questions worth resolving during the assessment and not after signing.

Worth bearing in mind

Before you decide

  • Without an hourly consumption history, the financial model rests on rough assumptions.
  • The regulatory category and the connection procedure depend on the installed capacity.
  • A prolonged plant shutdown changes the balance between self-consumption and export.
  • On the ground you have to allow for civil works, fencing, surveillance and a geotechnical study.
  • Operation and maintenance is a recurring cost that must enter the model from the start.
  • A PPA poorly negotiated on term or indexation can end up costing more than buying.

Sources: Ley 1715 de 2014 (Renewable Energy Law) (opens in a new tab) · Ley 2099 de 2021 (Energy Transition Law) (opens in a new tab) · Decreto 829 de 2020 (tax incentives decree) (opens in a new tab) · UPME (opens in a new tab) · Resolución CREG 174 de 2021 (net metering regulation) (opens in a new tab) · RETIE — Technical Regulation for Electrical Installations (opens in a new tab)

Questions about solar energy for industry

What information is needed to assess an industrial project?

At least a year of hourly consumption history, the bills with their energy and demand components, drawings and condition of the available roof or land, and details of the existing connection point.

Why does the hourly profile matter so much?

Because what determines the return is how much generation is consumed at the moment it is produced. Two plants with the same monthly consumption but different shifts get very different results from the same installed capacity.

Roof or ground?

The roof uses surface that is already occupied and shortens the electrical run, but it depends on the structural capacity and the service life of the sheeting. The ground optimises orientation and maintenance, in exchange for consuming land and requiring civil works and surveillance.

Does solar reduce the demand charge?

Not necessarily. If your peak demand falls outside daylight hours, the system reduces the energy consumed but not the peak that sets that charge. It is one of the reasons why the hourly analysis is essential.

Which regulatory category applies to a large project?

It depends on the installed capacity and on what the energy is used for. The framework distinguishes ranges with different requirements and procedures, so determining which one applies is one of the first design tasks and it shapes the whole schedule.

How is an industrial PPA structured?

A third party finances, installs and operates the system, and the plant buys the energy generated at an agreed price over a long term. The critical points are the term, the price indexation, the availability guarantees and the conditions for early termination or purchase.

What does a serious operation and maintenance contract include?

Continuous monitoring with alarms, scheduled cleaning, thermography, inspection of structure and protection devices, a stock of critical spares, and committed availability and response-time indicators, with their calculation formula in writing.

Can it be installed without stopping the plant?

In most cases the mounting is carried out in parallel with the operation. What does require a brief, coordinated outage window is the final connection to the switchboard and the commissioning.

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