What is Renewable Energy? How Does It Work?

Renewable energy is becoming a big business.

According to the United States Energy Information Administration (EIA), Americans used nearly 4 trillion kilowatt-hours (kWh) in 2021. From computers and televisions to machines and heating/cooling systems, businesses and homes heavily rely on electrical power.

The lion’s share of our electricity comes from burning fossil fuels like petroleum and natural gas. These two sources alone made up about 69% of all U.S. energy consumption in 2020. Other energy sources, like coal, have seen their use begin to scale back for cleaner options like wind and solar.

Emissions and greenhouse gases produced by traditional fossil fuel burning are associated with negative impacts, including smog, environmental issues, and health problems. As a result, organizations like the Global Commission on the Economy and Climate have suggested the world cut back on emissions by 2030 or risk losing its grip on global warming.

The rise of clean energy has been happening for decades, taking on greater importance as an affordable, cleaner, and sustainable form of energy compared to finite fuels like coal and petroleum. As companies continue refining alternative energy production techniques, more renewable energy sources will come online, reducing our reliance on traditional sources.

What Are Renewables?

Renewable energy has been around for many years, starting thousands of years ago with the use of wood. However, other modern renewable fuels have found their footing in more recent years.

In the middle of the Second Industrial Revolution in the United States, renewable fuels became more available, beginning in 1880 with the first hydropower electric plant in Grand Rapids, Michigan. Since then, renewable energy sources have improved with increased research development and application.

Today, renewable energy includes everything from biomass and water to wind, solar, and geothermal options, accounting for about 20% of electricity generated in the U.S. in 2021. The percentage will likely keep growing while we look for better and more sustainable ways to produce electricity without relying so deeply on finite fossil fuels.

For now, America has several excellent renewable energy options to help it cut emissions and maintain current power generation levels.

Biomass

Biomass energy comes from plant and animal matter – everything from wood and agricultural feedstock to manure, sewage, and even biogases captured at dairy farms and landfills.

Wood, by far, was America’s largest energy supplier through much of the 1800s. In more recent years, we’ve been able to create a lot more electricity from biomass, including capturing biomethane to use as renewable natural gas. Ethanol, another type of biomass fuel, is used in gasoline. Fatty acid methyl esters (FAME) help make biodiesel.

Biomass options aren’t as efficient as traditional fossil fuels, and they aren’t as clean as wind or solar energy. Still, they provide a renewable option that reduces reliance on traditional methods. There is no shortage of garbage, plant, and animal waste, meaning biomass is an ultimately renewable resource that could improve our environment.

Hydropower

Hydropower uses the natural movement of flowing water to create electricity for use.

Water falls into a dam’s penstock pipes and goes through a turbine. As the water moves through the turbine, it spins, sending energy to a generator that produces kinetic energy that gets converted into electricity. Facilities rely on the constant flow of water through these systems to create electricity 24/7 and can pump water back into the reservoir to recycle it during peak hours.

Ultimately, water is a renewable resource that can meet increased short-term demand quickly and doesn’t use or destroy any materials to create power. On the downside, dams can alter the environment and change the natural flow of rivers, are expensive to set up, and are somewhat beholden to the weather for their production.

Geothermal

Geothermal electricity uses the power of steam created from underground reservoirs to turn a turbine. Like hydropower, the turbine connects to a generator that produces electricity for use.

An energy company will drill into hot spots under the Earth’s surface, then pump water through the installed pipes back into the facility. Once in the facility, the hot water turns into steam with enough power to turn a turbine. This process occurs 24/7/365 and is generally predictable and easy to plan. Many geothermal plants also use a closed-loop system that allows water to be pumped back into the ground to keep the process going.

Geothermal energy is an eco-friendly option when managed correctly. Luckily, the Earth is constantly generating heat, so as long as non-potable water is added to replace what’s lost to steam, it’s possible to keep the plant going. On the downside, plants are expensive to establish and can cause earthquakes due to drilling. Plant locations may also have higher earthquake frequencies, but moving the plant further away from fault lines can reduce the risk.

Wind Power

Wind energy involves gigantic turbines placed in areas where the wind blows frequently. As the wind blows, blades attached to an electric generator spin, converting kinetic energy into electricity.

Environmentally friendly wind turbines generate electricity from an ultimately renewable resource, provided the wind blows. It’s also a low-cost and space-conscious way of producing energy that has the potential to grow in areas where the likelihood of wind blowing is high.

However, the turbines are tall, create some noise, and can turn off some people who want a wide-open view of the countryside. They also pose a risk to birds and bats that may get hit by the blades as they spin and could impact habitats if they’re carelessly site planned.

Solar Power

Solar energy technologies have come a long way in a short amount of time, allowing them to expand across the United States. Photovoltaic (PV) panels convert sunlight into usable electricity through PV cells by exciting electrons. The movement in the electrons creates direct current (DC) electricity which is sent to an inverter through specialized PV wires designed to withstand outdoor conditions. The inverter converts the DC electricity into alternating current (AC) power, then sends it to the grid.

Although concentrated solar arrays can be expensive to establish, they have a low cost to maintain once completed. Solar may also be capable of powering the entire country with some strategic panel placement. According to the Office of Energy Efficiency and Renewable Energy, it would only take about 22,000 square miles of land to power the entire country. Technology is constantly improving, so that number may drop further as more efficient panels and delivery methods come online.

Solar arrays can take up a lot of space but typically pop up in areas where development or farming aren’t feasible. These locations get exposed to a lot of sunlight, allowing the panels to collect solar radiation even on cloudy days.

There is also the potential to produce even more electricity through bifacial solar cells. These panels collect sunlight on both sides, making them more attractive in areas where snow or other materials can bounce radiation onto their undersides.

Why Renewable Energy Makes Sense

Renewables will take on a more critical role in our energy plans in the coming years.

Fossil fuels may be efficient energy producers, but they’re a finite resource. They also tend to be dirtier forms of energy production when compared to renewables like solar, wind, and water. As the world works toward reducing its reliance on fossil fuels, renewables will need to pick up the slack to maintain the same level of production.

However, the push for more renewable energy also coincides with the United States’ goal of producing 100% carbon pollution-free energy by 2035. Outside of simply being cleaner, renewable energy sources like solar and wind are less expensive to support and maintain over time, more economical energy producers, and will become more affordable over the years. From a safety and security standpoint, renewables can create a network of decentralized microgrids that may reduce the chances of a mass blackout during a natural disaster or a terrorist attack.

The U.S. is already working toward its 2035 goal. In 2021, about 23.6 gigawatts worth of solar energy were installed, totaling 121.4 gigawatts – enough electricity to power more than 23 million homes.

The Future of Renewable Energy

We’re starting to pull away from fossil fuels, but they are still an integral part of the current energy landscape and likely will be for a while.

Renewables are showing sustained growth, with solar comprising nearly 4% of all U.S. electricity produced. Installations are moving more quickly, and advancements in solar technology, down to the PV wire used to connect the panels to the combiner, or junction, box.

Sure, there is still a lot of work to do to get solar, wind, and other renewables to the level fossil fuels have been at for years. But it comes with the success of knowing the electricity generated is cleaner, more affordable, and nearly infinite.

Projected Renewable Energy Growth by 2030

Is It Possible For New York and Other U.S. States to Reach 70% Renewable Energy By 2030? Yes! But only if they use the One-Pull bundled wire system!

The solar industry has experienced major growth in the last decade at around an average growth rate of 42% per year. However, is it growing fast enough to support the renewable energy goals of the next decade? The United States hopes to have at least 70% of energy consumption coming from renewable energy by 2030. To achieve a grid powered mostly by renewable energy, it will require the U.S to increase its carbon-free capacity by at least 150%. These goals are possible, however, to be able to reach the intended capacity by 2030, the U.S. will need to save time and money.

To examine what it will take to achieve a 70% renewable energy grid, we will examine statistics from the state of New York. New York is one of the top 10 states whose homes are powered by photovoltaic (PV) solar energy with an average of 170 homes powered per Megawatt(MW) of PV. New York is also one of the leading states in adopting the “70 by 30” goal.

New York’s Renewable Energy Plan

The Governor of New York, Cuomo, released a Green New Deal goal to obtain 70% of New York’s electricity from renewable sources by 2030; in addition to a state mandate for a 100% emissions-free electricity grid by 2040. Several new wind and solar projects are already underway, which are expected to generate over 2.5 million megawatt-hours of renewable energy annually. Additionally, the Green New Deal set specific Megawatt goals such as adding 3,000 MW of storage and adding 6,000 MW of distributed solar all by 2030.  

The Department of Public Service along with the New York Energy Research and Development Authority (NYSERDA), issued a whitepaper dictating a plan for New York to follow to help achieve the full 70%. The whitepaper sets out a schedule with a target of 4,500-gigawatt-hours annually, around a 33% increase in where the target is now. Staying within the time constraints on this plan is crucial. As New York is one of the first states to adopt the goal of a majority renewable energy grid, it is setting an example for other U.S. states who are striving toward an emission-free energy sector.

How Can One-Pull Help Reduce Time?

With only 10 years to meet its goals, and with lag times between completion and operation of installations, time is important. One-pull products, specifically the pre-bundled solar wire harness, are designed to cut project time. Traditional setup for PV wire installations involves a great amount of labor, setup, and labeling. Installing solar PV wire to power a 1-megawatt (MW) solar project typically takes a team of 3-5 electrical professionals one to two weeks to pull wire the traditional way. In comparison, it only takes one day when installing a pre-cut, pre-labeled, and pre-bundled wire system.

One-Pull’s pre-planned, pre-cut, pre-labeled bundled cable solutions can save electrical contractors up to 80% of the time it takes to pull PV wire.

The images below show a before and after image of the usage of regular pulled wire compared to the one-pull bundle wire.

i) Traditional Wire Pull

non-bundled-wire

ii) Bundled Wire Pull

Reducing time on one project can also free up labor to work on other projects, thereby speeding up the installation process for many projects.

Despite the growth in the renewable energy sector, to reach their 70% target growth in the next 10 years, hundreds of gigawatts of solar energy need to be installed as much as five times faster than it is currently. Projects would require extreme measures to stay on the required time schedule, unless they utilized products like one-pull’s pre-cut and pre-labeled bundles, which would cut their project time by up to 80%.

Learn more about how bundled cable helps electrical contractors boost margins

4 Benefits of Utility-Scale Solar

Utility-scale solar has experienced immense growth over the past decade, hitting 50 gigawatts today, up from 1 gigawatt in 2011. It is predicted to be on track to continue driving the growth of the solar industry. While there are several challenges that come with the installation of utility-scale projects as detailed in this article, there are a slew of benefits.

The following are the benefits of utility-scale solar projects:

 

1. Cost Effective

The cost of solar energy has decreased consistently over the past decade. Utility-scale solar helps to save money over time by stabilizing electric prices. Solar power is more predictable than other energy sources like fossil fuels, where prices are constantly inflating. Predictability allows for the industry to be more reliable over time.

Utility-scale solar projects produce energy on-site. Due to their low environmental impact, they can be built closer to communities. Both factors eliminate the costs for transmission equipment. Additionally, utility-scale photovoltaic (PV) systems provide a great amount of output, while being less expensive than other solar installations. Utility scale PV solar installations are half the cost per Megawatt (million watts) generated compared to rooftop solar installations. Since utility scale solar has optimal output, there is more energy generated for a lower price.

 

2. Storage for Later Use

Utility-scale solar systems require a balance of system (BOS) which is the equipment and services beyond the PV modules that are needed to ensure the safety and functionality of a project. One of the components of a balance of system is battery storage that optimizes solar energy output.  An energy source that can provide power at times of great demand is known as “dispatchable generation,”. This includes traditional power sources such as coal or natural gas. Solar power is not dispatchable because it is only available during hours of sunlight. Therefore, batteries are used to store energy and distribute it at times of need, like at night. Battery storage increases the flexibility of the grid and allows for the energy to be distributed to the grid at times when demand is high. This increases the reliability of utility-scale systems.

 

3. Environmental Impact

Utility-scale solar systems are better for the environment than traditional energy sources, like fossil fuels. The burning of fossil fuels emanates harmful carbon emissions into the atmosphere contributing to climate change. Nitrogen emissions from such fuels could also cause health problems. Communities with a limited access to power sources could harness solar energy, keeping the grid clean and producing zero carbon emissions.

 

4. Community

Solar installations can improve the economic activity of a local community. Because the size of the project mandates a variety of service providers, utility-scale solar projects can create local construction jobs, and send business toward providers in operations and maintenance. Solar projects also provide communities with higher tax revenue. Because of the longevity of utility-scale solar this could result in substantial additional tax revenue.

Solar projects could also be beneficial to the overall quality of life of the community. In the case of farmland, replacing land with these solar projects eliminates the use of fertilizers and chemicals improving the water supply and decreasing soil runoff. Projects are also required to implement storm management plans, to ensure that projects do not contribute to flooding or erosion. When a utility-scale solar project is no longer efficient and the equipment is removed, the land returns to its original condition prior to the installation, and there is no lasting negative effect of the project.

Utility-scale solar installations, compared to residential and commercial solar projects, continue to take up a larger share of solar installations in the U.S. This, coupled with the projected growth of the solar energy market, only gives more reasons to invest in utility-scale solar.

 

Learn more about what a utility-scale solar installation is and its distinguishing features from other solar projects.

 

 

Challenges of Utility-Scale Solar Projects

Utility-scale solar installations are never easy to manage. They have numerous phases from financing to the ongoing operation and maintenance of the system, which are complex and intricate. Knowing the right steps to take to deal with the challenges in every step of the process and manage the risks associated with the installation, could be the differentiating factor to ensure a profitable project.  

The following are challenges associated with utility-scale solar projects: 

 

1. Varying site requirements

All utility-scale projects differ. This is because requirements vary from project to project. Requirements vary by transmission region, state, and utility. Therefore, it is important to plan effectively and understand all the requirements of the installation site. Some states like Texas require frequency and voltage droop, voltage control, and active power curtailment.  For utilities, some have requirements such as field witness test while others do not. Being aware of these requirements and having a good understanding of them will reduce the potential consequences resulting from a compliance failure. 

 

2. Insufficient risk management.

This results from poor planning at the beginning of the project. Upfront planning helps in the identification of potential risks associated with the installation. Some of the risks include accessibility of the site, material supply, vegetation control, and design of the installation. Failure to identify some of these risks could not only delay the project but also result in losses affecting the overall profit margin.  

 

3. Too many equipment vendors.

Utility-scale solar projects require several components commonly known as balance of system. These are often purchased from  multiple vendors. Many purchasing decisions are based on pricing with little regard to interoperability of the components. While purchasing from one vendor ensures an integration between the components, purchasing from different vendors could cause interoperability issues with the balance of system. Other issues such as supporting contracts, training, and replacing parts could also come up down the line, potentially driving up the overall expenses of the project. Consequently, seemingly saving on pricing at the beginning of the project by utilizing multiple vendors could potentially entail increased costs in maintenance and part replacements later on. 

 

4. Reluctance to change.

Beside BOS improvements, there have been other solar power technology advancements in recent years. Through research and development, there have emerged tracking technologies, more efficient solar panels, and technologies that optimize solar and energy storage. Reluctance to switch to modern technologies could mean inefficiencies that result in loss of productivity.  

 

5. Lack of labor and expertise.

Finding experienced personnel for utility-scale solar installations can be quite challenging. Labor varies in different regions since different solar projects have different requirements in different regions. In a mature solar market for example, utility-scale installation expertise is easily accessible. This is not the case in regions that do not invest in the solar market. For such regions, projects could be costly because of the high labor costs resulting from training. These are not one-time costs either since constant training is required to bring the labor up to speed with more efficient processes.  

 

While this article highlights some of the challenges with utility-scale solar installations, there are many other challenges that arise with the growth of the solar industry. What’s certain though is that careful planning and coordination between the various vendors, the EPC, electrical contractors, and subcontractors are critical.  

 

Learn more about how ECs are winning more solar projects with bundled cable. 

 

What Is a Utility Scale Solar Installation?

When talking about solar projects, “residential” and “commercial” are typically the ones heard of. However, these are not the only types of PV installations. Utility-scale solar is another type of solar project that is a major source of solar energy.
Utility-scale installations keep taking up the larger share of installations- accounting for 57% of installed capacity in Q1 2018. With this tremendous growth of utility PV installations and growth in the industry driven by utility-scale projects, it’s surprising that there is no commonly accepted definition as to what project size constitutes utility-scale.

What then is a utility-scale solar installation?

A utility-scale solar facility is one which generates solar power and feeds it into the grid, supplying a utility with energy.
Utility-scale solar projects can be massive spanning multiple acres of land. Different entities claim different minimum size thresholds for these projects. They can range anywhere from 25 kilowatts to 50 megawatts. Size, however, is a major distinguishing factor of utility-scale solar installations from other solar projects.

The other distinguishing features of utility-scale solar projects include:

 

1. They are sold to wholesale utility buyers

This is the primary differentiating factor of utility-scale solar from other solar projects. The electricity produced is not directly used at the host site. It is sold to wholesale utility buyers and not end-use consumers. Every utility-scale solar facility has a Power Purchase Agreement (PPA) with a utility, guaranteeing a market for its energy for a fixed term of time (usually 10 to 25 years).

Some of the utility-scale solar project participants include:

  • Wholesale utility companies that purchase the generated power
  • Project developers and EPCs (engineering, procurement, construction)
  • Project financiers
  • Contractors and installers
  • Local government agencies
  • Solar and energy storage equipment manufacturers
  • Solar project owners

 

2. They are usually ground-mounted arrays

Because of the massive size of utility-scale solar plants, the installations are usually ground-mounted arrays. These arrays can be set at the perfect angle on the power plant to maximize sun exposure hence optimizing energy production.

Sometimes the ground-mounted arrays include the use of solar trackers to maximize energy production.

 

3. They utilize several solar technologies

A utility-scale solar power plant can utilize several solar technologies – primary photovoltaics (PV), concentrating photovoltaics (CPV), or concentrated solar power (CSP).

While often confused, CPV and CSP technologies are intrinsically different. CPV technologies use the photovoltaic effect to directly generate electricity from sunlight while CSP uses heat from the sun’s radiation to make steam to drive a turbine which produces electricity using a generator. The concentrated thermal energy from CSP can be stored and used to produced electricity as needed regardless of the time of day.

 

4. They are highly reliable as a source of energy

Utility-scale solar projects can guarantee energy production since most of the installation designs can include energy storage capacity that provides power when the sun is not shining and increases grid reliability and resiliency.
In addition to this, utility solar plants are popular with utility companies since they provide the benefit of fixed-price electricity during peak demand periods when electricity from fossil fuels is expensive.

The solar market is growing rapidly in the US with utility-scale solar driving most of that growth. It’s therefore essential to understand what exactly these installations entail including the components necessary to create an operational utility-scale solar project.

 

To learn more about utility-scale solar and its components, check out our recent article on balance of system for utility-scale solar.

 

 

Cost Efficiencies for Utility-Scale Balance of System

In recent years, utilityscale solar costs have been declining, with an 82% decline reported since 2010. However, this downward trend in solar costs has not been reflected in the cost of balance of system. With a lot of focus being placed on PV modules, little research has gone into exploring balance of system and the costs associated with it. This is changing however with an increase in knowledge of its cost reduction potential.  

Utility solar balance of system costs account for 68% of PV System pricing. These costs include soft and hard costs. The soft costs comprise installer costs such as labor and administrative costs as well as financing and contracting costs, system design and engineering expenses, and costs related to permitting and interconnection. Hard costs on the other hand entail costs associated with the physical components of the system. These costs are detailed further in this article. Knowledge of these costs not only allows project managers to control costs, but also increase efficiency  

When it comes to driving down the costs of a balance of system, there are three main areas of concern: material use, logistics, and installation times and requirements. Looking into material use, for example, most utility-scale solar systems are manufactured using steel. While aluminum is also an option, cost considerations generally steer developers away from it.  

 

Cost-saving solutions for a utility solar balance of system include but are not limited to: 

1. Planning ahead

Site access and preparation are important in any utilityscale solar project. This allows a contractor to determine every essential component of the project including installation time. Varying site environments and landscape call out for specific components which when left out could result in potential losses for project owners in replacing components down the line. Customized planning ensures not only a cost-effective system but also an energyefficient BOS environment.   

 

2. Estimating and comparing costs of different components

Balance of system components offered for solar projects differ in several aspects including costs. Planning not only allows determining necessary components of the project but also find alternative cheaper substitutes. Contractors can also implement cost-effective designs that do not compromise on the quality of the system. Picking the right components despite higher costs is essential to the longevity and performance of the system hence the cost of the project.   

 

3. Implementing turnkey solutions

Because work on a construction site is prone to weather and other delays, it is important to reduce installation times as much as possible. While this could be done by increasing the labor force of the project, this not only raises the cost but also brings about issues with over-resourcing. It is, therefore, best to implement turnkey or pre-assembled solutions meant to cut down installation time while maintaining the profitability of the project. One such solution is the use of a pre-bundled solar wire harness designed to meet the needs of solar projects ensuring quick turnarounds and increased profit margins. 

 

 4. Implementing low maintenance and seamless BOS operations 

Streamlining the operations process associated with BOS installation cuts down on unnecessary tasks within the project. These tasks increase project costs and reduce productivity. It is therefore essential to rely on experience to recommend low maintenance and seamless BOS operations. This also helps manage risks associated with the solar project such as considerations of site access and ground surface adjustments, material supply, vegetation control, and design of the installation. Having experienced contractors aware of these risks could limit potentially costly issues and delays during the construction and production phase of the project. A seamless BOS operation also creates good communication that allows for issues to be resolved in the early stages of the project without a high impact on the project cost. 

  

Learn more about ways to find cost-saving efficiencies in utility scale solar projects.  

 

Balance of System for Utility Scale Solar

Utility scale solar systems consist of more than just photovoltaic panels. Planning for utility scale solar projects requires knowledge of all the components necessary to create an operational general project. These components are referred to as a balance of system, often abbreviated as BOS.

Most often, a balance of system refers to the components, equipment, structures, and services needed for the project beyond the PV modules themselves. A balance of system, besides the workmanship in the plant, determines the quality, safety, and profitability of the solar project since BOS components make up 50-60% of solar costs. Therefore, BOS components have a significant impact on the project’s overall costs and long-term profitability.

A solar PV balance of system is categorized into two groups: electrical and structural BOS. Here is a breakdown of these two categories and their applications in utility scale solar projects.

Sun-Pull Balance of System

1. Electrical BOS

To deliver the energy generated from the sun to the grid, electrical BOS components are needed to allow the current to pass through the circuit. There are multiple electrical BOS components that are vital for minimizing electrical system losses.

  • Inverters – inverters convert DC power produced by the solar array into usable AC power. These differ based on their costs, durability, and scale of the project. String inverters are more commonly used for utility-scale solar projects.
  • Wiring – in a PV installation, DC cables are required for connection between the PV components while AC cables are used to connect the inverter to the grid. It is essential to pick the right type of wiring for PV installations that can withstand the outdoor conditions. Implementing cost-saving wiring solutions can also increase the profitability of a utility scale solar project.
  • Combiner box – this combines multiple PV strings into a single circuit. Combiner boxes should be rated for outdoor applications and withstand extreme weather conditions.
  • Fuses & Circuit breakers – these are primarily used to protect the system in fault conditions. They also are used to protect devices from catching fire or from becoming more seriously damaged if there is a short circuit.
  • Grounding conductors – PV systems need to be grounded to protect people and equipment from electrical hazard and equipment damage. These include equipment grounding conductors (EGC), grounding electrode conductors (GEC), and rods. In special cases, PV systems need to be protected from lightning. That is also done through a special grounding electrode connected to the ground in order to drain the lightning current.
  • Conduits – conduits provide damage protection for conductors. Conductors are better protected if they are run through conduits, raceways, and wireways not only for damage protection but also safety precautions. All conductors between a combiner box and the utility disconnects are usually run through conduits.

2. Structural BOS

Installation requirements vary from one solar project to another. However, they all need systems designed to hold them in place. These are referred to as structural BOS.

  • Foundations – Solar panels require a strong, durable foundation. Foundation selection is critical for a cost-effective installation of PV solar panel support structures. There are four types of foundations commonly used such as driven piles, helical piles, earth screws, and ballasted foundations. The right foundation is based on the site conditions (such as the type of soil). Therefore, it is critical to thoroughly investigate the site of the project prior to picking the type of foundation.
  • Racking – Racking systems are a crucial element of solar arrays. To fix solar panels to the ground, solar installation companies use solar racking products, also known as solar mounting, to hold solar equipment in place in the installation. Just like solar foundations, racking systems need to be optimal for the site conditions. With proper installation, a sturdy racking system secures the PV solar panels in extremely harsh weather conditions.

Utility-scale solar project needs vary from one solar project to another. Knowledge of the project needs, and the BOS components required are crucial for the project’s profitability. This also helps determine which BOS components are optional and which ones are necessary, ensuring a cost-effective and energy-efficient BOS environment.

Check out innovative solutions to cut down on the overall installation cost of utility scale solar.

Bundled Wire Harness for Utility Scale Solar

As utility scale solar construction is projected to increase in 2021 and renewable energy becomes more widespread, there is need for more solar connectivity solutions and more specialized components to meet the unique needs of this rapidly evolving industry. One of these specialized components is a solar wire harness.  

A solar wire harness is pre-bundled solar wires designed to meet the needs of solar projects ensuring quick turnarounds and increased profit margins. 

We get a deep dive into the benefits of using solar wire harnesses from Tony Wagner, One-Pull’s Chief Operations Officer. 

1. Saves Project Time: Do in a Day What Traditionally Takes a Week

Pulling wire the traditional way with single conductors takes a long time. It involves a lot of labor, reel set up, and labeling. For PV wire installations on utility scale solar projects, this will typically involve 40 – 500 rows for projects between 5 and 25 MW. For example, installing solar PV string wire to power a 1-megawatt (MW) solar project might take a team of 3-5 electrical professionals one week to pull wire the traditional way versus one day when installing a pre-planned, pre-cut, and pre-printed bundled wire system. 

One-Pull custom prints the inverter/combiner box number and string number approximately every 12” on each conductor in the bundled cable harness. This allows for easy identification and eliminates the need to identify and label each wire saving the electrical contractors significant time. 

 

2. Increases Profit Margins

Switching from single PV string wire conductors to bundled wire harness enables electrical contractors to cut down on project time and get to their next project more quickly. Consequently, this increases their profit margins. 

The increased profit margins improve even more when including MC4 connectors preinstalled on the PV string conductors for easy connection to the solar modules, since the solar modules come with connectors pre-installed on the back of the panel. Every 1 MW requires approximately 180 connectors on the PV string end of the wire connections. These connectors are installed in advance only on one side of the harness to allow for the harness to be pulled through conduit. 

In addition to this, having pre-bundled solar PV wire delivered to the site means not having to store inventory on site. As a result, the bundled cable helps save on storage costs. 

Learn more about shrinking profit margins and other issues facing the electrical construction industry.  

  

3. Improves Chances to Win a Job Bid

One of the ways that electrical contractors can become competitive on job bids is by setting themselves apart from the competition. Using valueadded solutions such as a solar wire harness could ultimately help the electrical contractor win the job bid due to the competitive advantages that accrue from using a solar wire harness. A bid that stipulates a bundled wire solution makes the bid more attractive. 

Having a turnkey solution such as the pre-bundled solar wire harness assures projects stakeholders of the cost-savings and improved labor productivity, since such solutions provides proof that the project will be completed by the predetermined date (or potentially even faster). For electrical contractors, this means late fees are avoided.  

Find out other ways contractors can stay competitive on job bids.  

 

4. Eliminates Hazard and Safety Issues

Pulling single strings of wire on a utility scale solar project is strenuous and takes a physical toll on the workers. The more time electricians spend on the job site, the chance of incurring a job site injury inevitably increases. Electrical contractors are often looking for tools that enhance the safety of their teams on the job site. Using a solar bundled wire solution not only reduces the time they are exposed to weather conditions but also the time it takes to complete an installation. 

At One-pull, we deliver the bundled PV string wire on one reel per row or per conduit home run, ensuring faster pull times and less reels cluttering the job site that may lead to safety issues. One-Pull will also pick up the empty spools and pallets thereby eliminating further safety issues and disposal costs. 

 

Click to learn which states are creating solar opportunities for electrical contractors.  

Ways to Find Cost-Saving Efficiencies in Utility Scale Solar

The solar market in the U.S has been growing rapidly with a predicted installation capacity of 107 GWdc  in the next 5 years. Within this industry, utility scale solar continues to take up the largest share of annual installations. In Q1 2018 for example, utility photovoltaic installations accounted for 57% of the installed capacity. With this growth, comes an opportunity for suppliers and manufacturers that cater to EPCs and electrical contractors.

Solar installation prices can be expensive. Installation prices take into account both hard and soft costs. Here’s a quick overview of how these costs impact utility scale solar installations and innovative solutions to cut down on the overall installation cost.

Hard costs

These account for the hardware components of the solar installation. They range from solar panels as well as the balance of systems (BOS) components such as the solar mounting racks, PV string wire, fused cable harnesses, batteries, inverters, and combiner boxes. While these components are not cheap, their costs plummeted in Q1 2018 owing to weakened global demand and response to buyer pressures.

According to a cost breakdown of solar panels, the panels account for about 25-30% of the total system panel cost, not including the solar inverters, solar mounting, and BOS components. Here’s a pie graph showing the breakdown of hard costs.

Controlling for hardware costs can be challenging as there are many factors. For example, at the end of 2020, solar panel prices increased because of a shortage of glass and ethylene-vinyl acetate laminate.

There are also existing tariffs that continue to restrict the growth of solar in the United States. One restrictive tariff is Section 201 of the Trade Act of 1974. This tariff was meant to boost U.S manufacturing by locking out unfair competition from foreign countries. However, 98% of solar panels and their components are manufactured outside the United States. Therefore, this tariff and others not highlighted here have only slowed down the flow of lower-cost products from foreign countries leading to higher solar installation costs.

Soft Costs

Soft costs in solar installations refer to the non-hardware costs associated with the installations. Some of these include labor costs, payment for permits, and other overhead expenses associated with the system.

According to a breakdown of soft costs, they account for 64% of a new solar farm system’s cost making them vital in determining the cost of the entire system.

A large share of soft costs stems from labor which  makes up about 11% of the  total soft costs. Since labor costs tend to remain constant, they do not adjust quickly to market conditions.

Finding cost-saving efficiencies.

To make solar energy cost-competitive with other traditional forms of electricity, prices will need to continue to decrease.

Soft cost optimization will determine just how much costs can be reduced on a dollar-per-installed-watt basis and can yield more cost-per-watt benefits.

One innovative way to optimize the soft costs would be adopting solutions that reduce the 11% labor cost associated with installation expenses. Having a skilled workforce ensures a reduced labor gap in the industry. Educating the workforce and equipping them with the right training not only reduces this gap but also improves solar sales transactions, speeds up installations, and lowers expenses throughout the value chain.

Another way would be to implement cost-saving solutions such as using pre-planned, pre-cut, pre-labeled bundled cable in installations which can save up to 80% in the time it takes to pull the PV wire. For every 1MW of solar project installation, this equates to 3-5 people completing the string wire installation in one day vs. one week. Utility-scale solar components are expensive.Therefore incorporating components that are cost-savers ensures higher gross profit margins for EPCs.

Pre-bundled wire speeds up installations by cutting down on labor time and costs. By reducing time spent on pulling wire, electrical contractors can expedite the time it takes to complete a job and then move on to other projects more quickly.

While hard costs, such as solar panels as well as balance of systems (BOS) components, have been declining in recent years, soft costs have remained steady. Therefore, implementing cost-saving solutions will help lower the overall costs of utility scale solar installation projects.

Check out our time and motion study to learn how implementing bundled cable in industrial solar installations saves on labor costs.