Tag: clean energy

How Can Solar Developers Reduce Labor Costs?

Posted on by Gino Geruntino

It’s been about a year since President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law, drastically cutting federal support for the solar industry. 

The move immediately made ITC and PTC incentives harder for solar developers and EPCs to access. It also shortened the timeline for projects to qualify for them, and sunset deadlines and tax incentive timeframes. 

While the initial shock left the industry reeling (especially residential solar installers), overall solar growth has been resilient. The rules are different, but savvy solar companies are rolling with the punches. 

However, losing federal tax incentives highlights a glaring issue: projects just became more expensive. With that fact in mind, developers and EPCs need to control costs while maintaining quality standards. 

Creative Cost-Cutting 

Fewer tax credits and incentives are available, but solar EPCs can still maintain a positive internal rate of return (IRR). 

IRR measures the profitability of a proposed solar site over the span of its usable lifetime, and includes factors like: 

  • The project’s initial cost 
  • Operations and Maintenance expenses 
  • Potential and realized cash savings (rebates, electricity sales/savings, and other benefits) 
  • The project’s usable lifespan – typically 25-30 years 

With so many variables, developers can pull levers in one area to compensate for issues in another, offsetting or improving the overall IRR. In this case, as rebates and tax credits eventually dry up, we can lower costs and improve maintenance by maximizing labor. 

Why Is Labor the Next Cost-Saving Measure? 

We’ve seen firsthand how quickly the solar development landscape can change – for better or worse. 

According to the National Renewable Energy Laboratory (NREL), solar power’s levelized cost of energy (LCOE) has plummeted since 2010. Over the last 15 years, costs fell roughly 86% for utility-scale solar systems and 84% for commercial installations. The agency noted that prices fell quickly for several reasons, including lower system costs, better technology, and improved operations. 

But while hard costs plunged, soft costs like labor, permitting, and taxes have been more stubborn. 

For years, solar companies fought to hire as many employees as possible to support a rapidly growing industry. Today, the goal has evolved from having large staffs to efficient ones. 

In 2026, the goal for EPCs and developers is to maximize productivity and minimize overhead. Since hard costs can’t fall much lower, the next option is to reduce labor costs. For many builders, it means finding ways to standardize builds, automate systems, and modularize components. 

Reducing Solar Labor Costs 

Since solar companies can’t do much to reduce the cost of permitting, fees, and taxes, reducing labor costs is the next best option. 

To save on labor, we can either reduce overall headcount or improve productivity. Since reducing headcount is a drastic measure, optimizing installs is often a better long-term solution. 

But what can developers do to maintain operations while preserving bottom lines and IRR? 

Automate Installations When Possible 

Automation has been a lifesaver for many industries, as robots perform repetitive tasks, while allowing people to do higher-value work. 

Robots, artificial intelligence, and drones have many applications in the field, both physically and virtually. For example, robots can use GPS tracking to precisely dig pilot holes or move and install heavy racking. They can also precisely install panels onto racks, all under a worker’s watchful eye. 

With an unmatched blend of speed, accuracy, and dependability, automated robots and other high-tech gadgets are taking solar by storm. Companies like Terabase say their bots can automate construction, cutting costs and freeing workers for other tasks. Not only does the system double productivity, but Terabase says Terafab® work is safer and of better quality, too. 

Terabase is only one automation company, but it’s part of a burgeoning robotics industry. As the technology improves and automated system costs stabilize, expect adoption to rise dramatically. 

Lean on AI Mapping 

Artificial intelligence is a white-hot topic, so it’s no shock that solar companies have found ways to use it effectively. 

One of the easiest ways to implement AI into solar projects is to assist engineers with site configurations. Today, a team of engineers may create, test, and review potential solar project layouts, which is time-consuming and costly. 

With AI tools, solar engineers simply upload data and wait for the system to spit out results. Once the review is ready, the team checks its work to test the design’s feasibility. 

In this case, solar companies need fewer engineers for each project, allowing them to spread out across more projects. This increases productivity and shortens timelines for solar projects across the entire portfolio. 

Beyond site testing, AI is also helpful for creating digital twins of solar sites. Digital twins are exact virtual versions of physical objects or designs and help engineers spot potential problems before breaking ground. These replicas mimic planned sites, giving teams visibility into what the final project might look like and how to improve it. 

AI is expanding quickly, but even supercomputers get answers wrong sometimes. Project engineers should ensure the data fed to the system is accurate and double-check every output. However, if everything checks out, artificial intelligence can improve performance and mitigate fail points during development and operation. 

Pre-Fab and Modular Solar Materials 

When time is money, the easiest way to reduce labor costs is to shorten timelines. 

One way to accomplish both goals safely is to reduce the amount of boots-on-the-ground time workers spend assembling solar installations. Luckily, you can modularize most parts of a utility-scale solar site, including foundations, racking, and even PV wire. 

PV Wire 

PV wire is a small part of the overall solar project cost, but plays an oversized role in the project’s performance. 

When workers field-install PV wire connectors, it slows them down and may lead to potential mistakes. These mistakes can result in loose fittings, reduced performance, and even arcs, sparks, and fires. 

Pre-fab PV wire eliminates a critical fail point during installation. Manufacturers can bundle and fit PV wire with pre-tested, uniform connectors for fast field installation. Ultimately, pre-fitted connectors and bundled wire reduce installation times and increase project quality. 

Racking 

Racking is a durable, weather-resistant framework that holds PV panels in place. Depending on the need, crews can install fixed-tilt or single/double-axis racking to maximize energy generation. 

Like PV wire, workers can build racking systems off-site, then deliver them to the jobsite for installation. Developers can also attach pre-fab racking to modular foundations or ground-mount systems to further streamline processes. 

For developers, pre-fab racking takes additional risk out of the project. First, workers don’t have to worry about weather delays slowing them down as they weld pieces together. Secondly, critical welds and other delicate fabrication work are happening off-site, ensuring every weld passes inspection. 

Lastly, because these systems install more easily, solar EPCs can use less experienced labor and still maintain speedy production. 

Solar Panels at Sundown - Sun-Pull Wire (Photo by Gino Geruntino)

eBOS, Simplified 

In 2026, simplicity and speed are paramount. Thankfully, companies have no shortage of modularized parts. 

Modularization helps developers move quickly to bring sites online while saving time, labor, and headaches. But beyond making initial set-up a breeze, pre-fab parts come in handy during maintenance as well, reducing downtime when something needs replacing. 

So, which eBOS parts have pre-fab options available? 

  • Combiner boxes with customized string configurations 
  • Wire harnesses, clips, and brackets to hold PV wire in place 
  • Factory-molded and installed field connectors for safe, secure connections 
  • Factory-made concrete ballasts reduce weather-related risks and debris affecting concrete integrity 

In each case, pre-fab parts keep as much work off-site as possible. When done well, developers need fewer workers to do more work while maintaining safety. Plug-and-play pre-fab parts and pieces later reduce downtime and maintenance costs by being easy to install and replace. 

More Focus on Standardization 

Standardization, as the name implies, strives for similarity. 

The idea behind standardization is that it creates familiarity over time. Once workers understand how to work with the assigned parts and pieces, they can quickly and confidently perform work across any site using those parts. 

And, like modular parts, standardization creates simplicity. Complex installations require more expensive workers, more time learning new systems, and longer development timelines. When developers can simplify the process and components used at each location, workers can get more done each day. 

Long story short, simple saves time, money, and effort without sacrificing quality and reliability. 

Working With the Landscape 

Sometimes, investing in the right spot to build is the easiest way to save time and labor costs. 

Usually, this means looking for stable locations where the ground requires little prep work. Excavating, moving and grading land, and adding infrastructure takes significant time and cost. 

To reduce labor costs, we can start by finding easier locations to build on. Brownfields like landfills, coal mines, and other locations, sometimes already have infrastructure from previous uses. From roads and substations to other land development, these sites can supercharge solar project timelines. Pre-established substations also make it much easier for solar sites to interconnect to the grid later. 

Companies can also look for locations where digging and grading may not be necessary. Crews can avoid excess work by using pre-fab foundations or ballasts, or by using racking systems that work with steeper slopes. In both cases, crews can remove a step or two from the preparation process, cutting crucial time from the timeline. 

Controlling Labor Costs is Possible 

Despite declining federal support and financial incentives for large-scale solar development, solar energy companies still have wiggle room. 

Today’s economy is about doing more with what you have and prioritizing safe, efficient installs every time. With strategic investments in emerging technology and approaches grounded in simplicity, developers can reduce labor costs without losing quality. 

The clean energy industry has the opportunity to embrace cutting-edge technologies, including artificial intelligence. AI is useful in many instances, from checking permits and creating digital twins to remote monitoring on completed sites. In each case, technology frees up engineers and workers to focus on higher-caliber tasks. 

Additionally, robots can fill roles that recruiters couldn’t hire for. The solar industry still struggles to find talent, so supplementing teams with automated robotic solutions makes sense. Robots are fast, accurate, and meticulous; when supported by eagle-eyed workers in the field, projects move faster without forfeiting safety. 

Keeping the Industry Moving 

Ultimately, reducing labor costs for solar developers and EPCs provides massive benefits for companies and the industry. 

More efficient labor improves the bottom line, streamlines project timelines, grows profit margins, and enhances scalability. And with so many large-scale U.S. initiatives, including data centers and electrification efforts, solar has no time to waste.

Renewable Energy Shines Amid Unprecedented Growth

Posted on by Gino Geruntino

Stop me if you’ve heard this before, but the United States is using record amounts of electricity. 

If the news sounds like a broken record, it’s for a good reason. After 15 years of fairly stagnant electricity use, consumption has risen quickly in recent years. According to the U.S. Energy Information Administration (EIA), consumption has grown 2.1% annually for the last five years. 

But what factors are causing energy use to jump so quickly? Unfortunately, there isn’t a problem we can safely point a finger toward, but rather a combination of variables. For example, the United States is in the midst of a data center boom. Data centers consume an incredible amount of electricity to move data around, perform complex tasks, and cool servers. 

Simultaneously, more Americans are jumping on the electrification bandwagon, powering everything from cars to stoves with electricity. As more products shift away from traditional fossil fuels, they need power from somewhere. And finally, severe weather is shellacking the country more often, with stronger storms. 

These factors, combined with myriad others, have made electricity a hot commodity, and the markets have responded in kind. Electric rates are up, sending ratepayers reeling and leaving utilities scratching their heads for answers. 

But the ongoing energy issue has also opened the door for emerging energy sources to jump in. Amidst a perfect storm, solar energy, wind power, and battery storage are uniquely positioned to thrive. 

Mitigating Clean Energy’s Intermittency 

Renewable energy generation could reach new heights in 2026, thanks to critical improvements to battery storage. 

Previously, wind and solar were only as reliable as the sun and wind. If the sun was shining and the wind blew, panels worked and turbines spun. However, once the sun set and the wind died down, so too did the power production. Although battery energy storage systems (BESS) don’t fully solve clean energy’s intermittency issues, improved dispatching helps mitigate them. 

For the clean energy industry, battery storage is a cheat code. But it isn’t just developers who see the potential; the EIA thinks renewable power could make another leap in 2026. 

The EIA predicted that renewables will comprise roughly 93% of planned 2026 electric generating capacity. Even better, solar energy may be 51% of all planned capacity additions, with wind and battery storage combining for 42%. 

And, unsurprisingly, states with large solar footprints, like Texas, Arizona, and California, are leading the way. Not only are they at the vanguard of the green energy transition, but they’re also breaking renewable energy generation records. 

Solar’s Massive Swing 

Under the first year of President Donald Trump’s second term, the renewable energy industry found itself in the crosshairs. 

The Trump administration moved quickly, gutting tax incentives for solar and wind, and reversing policies supported by the Biden administration. Experts feared the moves, which ended some programs and early sunsetted others, would have a chilling effect on the industry. 

That hasn’t been the case so far. 

Top View of Battery Energy Storage Containers Beside a Solar Farm - Sun-Pull Wire (Photo via Shutterstock)

BESS Make Renewables Stable and Strong 

Even without federal support, solar and wind energy have kept the momentum going. 

Federal Energy Regulatory Commission (FERC) data shows solar added 26.5 GW of new grid capacity in 2025. Meanwhile, wind power added another 5.8 GW of installed capacity, while coal capacity fell slightly because of planned retirements. 

Overall, developers aren’t as phased by Trump’s rhetoric as initially thought. EIA data also supports this claim, estimating 43.4 GW in additional capacity this year. Battery storage may also expand, with 24.3 GW expected to come online in 2026. 

The renewable segment is benefitting from several bits of good news. Solar eBOS costs have stabilized after years of decline, though soft costs (permitting, labor, etc.) are more stubborn. Still, solar PV’s Levelized Cost of Energy (LCOE) is generally lower than natural gas, even without tax credits. Plus, projects billed as “solar + storage” deals are generally less expensive than natural gas or other fossil fuels. 

Renewable Energy Breaks Records in 2026 

Amid rising electricity demand and outrageous electricity bills for ratepayers, solar and wind projects have been pulling their weight. 

States that invested in solar, wind, and battery power are already reaping the rewards in 2026, thanks to the season. Springtime tends to be when renewable energy sources pick up steam. Strong winter winds still blow in March and even into April, while sunnier days amp up solar generation. 

Of course, more utility-scale solar projects also mean more opportunities to produce power. 2026 year-to-date totals through Q1 outpace 2025 and 2024, and it isn’t even close – production has nearly doubled from 22.1 GW in 2024 to 39.3 GW in 2026. 

States Set New Milestones 

Renewable energy is picking up nationwide, with several states and grid operators leading the way. Their investments in solar panels and wind turbines are paying off, helping meet crucial sustainability and grid reliability goals. 

Texas (ERCOT): 

The Electric Reliability Council of Texas (ERCOT) recently set personal bests for wind and solar energy production this spring. 

On March 14, ERCOT set a one-day record of 28,470 MW of wind power generated, breaking its previous record from March 2025. One week later, on March 21, ERCOT set a new solar energy generation record, producing 33,452 MW of electricity. Not only did it break the previous day’s record, it was one of three solar generation records in March. 

Texas is also resetting its battery discharge records, regularly outproducing its previous best. The news arrives at a perfect time for the state, as Texas has become a hotbed of activity. Not only is Texas a renewable energy leader, it might become the data center capital by 2030. 

California: 

In March 2026, clean energy met or exceeded electricity demand for a portion of the day on 30 of 31 days. 

Last year, clean energy achieved this goal on 279 out of 365 days. Each year, the number has grown as more renewable projects connect to the grid. 

Midcontinent Independent System Operator (MISO): 

This large region, which covers 15 states and Manitoba in Canada, has also broken clean energy records this year. On January 13, the regional transmission organization broke its previous wind production record, reaching 26,572 MW. The new mark beat its previous best set only a couple of weeks earlier in December 2025. 

More recently, on April 20, MISO broke its solar production record, setting a new high of 18,790 MW. The previous personal best was set during March. 

Unlocking Renewable Energy’s Potential 

Clean energy is on the rise across the United States, but that doesn’t mean it doesn’t have its difficulties. 

For solar, wind, and battery storage to maintain momentum, two things must happen: streamline both our processes and projects. In each case, slow processes and inefficient operations bog down potential renewable projects. The result is long delays, more expensive projects, and continued difficulties meeting rising demand. 

But where should we focus our energy? 

Less Red Tape 

The easiest way to streamline processes is to get all the required players on the same page. This means finding ways to align federal, state, and municipal guidelines when possible. 

Current projects can wait for years to connect to the grid. That means a project proposed today might not see the light of day for four to five years. For developers, those delays lead to lost revenue spent on land leases, labor, reviews, and more. 

Compounding the issue is that the soft costs of solar energy aren’t falling as the hard costs have. Hard costs, which include racking, panels, and PV wire, have dropped and stabilized over the years. Soft costs, though, like permits, inspections, interconnection, and labor, have been more difficult. Reducing those costs could make clean energy development much more attractive across the country. 

As the industry and government find common ground and establish guidelines, it ultimately saves time and money for everyone. Streamlining reviews and other processes can shave months off the permitting process for developers, reducing costs and delays. For governments, more unity leads to faster reviews, fewer redundant processes, and more opportunities to add grid capacity. 

Sun-Pull Solar Farm Install

Update the Grid 

The U.S. electrical grid contains components more than 50 years old, leading to unreliability. As the grid gets older, it also struggles to incorporate new generation capacity and electricity generation options. 

Improving the grid can go a long way toward addressing ongoing issues, but it’s an expensive task. However, those updates can increase overall reliability and open the door for queued solar and wind projects to interconnect. 

In the meantime, it’s possible to update and stabilize the grid in smaller, less expensive ways. One idea is to invest in microgrids and other distributed energy resources (DERs). These installations can reduce overall grid strain, encourage local energy production, and reduce overall electricity costs for ratepayers. 

A New Dawn 

Now is the clean energy industry’s time to shine. 

Solar and wind energy are completely renewable, domestic, and clean. Add in battery storage options, and clean energy becomes much more attractive to large-scale developers and utilities. 

With that said, something needs to replace coal power, which has been cut back somewhat. Renewables can pick up the slack, utilizing brownfields, former coal plants, and other undesirable areas to generate electricity. As a bonus, these sites also help communities right away by generating low-cost electrical power and creating jobs. 

Renewable energy is ready and able to do its part to support the power grid. Energy consumption is rising, and consumers want lower prices, cleaner energy, and more reliability. Clean energy does all these well, using infinitely renewable resources as its engines.

Solar Success: Illinois Passes Clean and Reliable Grid Affordability Act

Posted on by Gino Geruntino

In January, Illinois Governor J.B. Pritzker signed the Clean and Reliable Grid Affordability Act (CRGA) into law, sending waves through the solar industry. 

The CRGA builds on the state’s successful 2021 Climate and Equitable Jobs Act (CEJA), cementing Illinois’ commitment to renewable energy. But, perhaps most importantly, the upcoming law could make electricity more affordable for residents. At a time when energy consumption is rapidly increasing, affordable electricity is a critical issue. 

But what does the CRGA do for Illinoisans, and can other states use it as a blueprint for their own residents? 

What is the Illinois Clean and Reliable Grid Affordability Act (SB-25)? 

According to Gov. Pritzker, the law, which takes effect June 1, 2026, achieves several key renewable energy goals. 

While the focus is on driving clean energy development, the CRGA aims to align ratepayers, developers, and utilities. When combined, proponents of the law say it could create jobs, lower electricity rates, and stabilize grid performance. 

Specifically, the CRGA tackles a few high-level issues, including: 

Lower Utility Bills for Illinois Residents 

As part of the law, Illinois plans to add another 3 GW of battery storage to the state’s grid by 2030. Battery storage has given solar and wind energy a boost in many instances, making them more consistent power generators. 

Another method of reducing utility bills is by adding more power generators to the grid. In this case, the state is lifting a decades-long moratorium on nuclear energy development. Keep in mind, the moratorium isn’t ending for all nuclear installations, just those over 300 MW. 

The CRGA includes another layer designed to reduce consumer costs. State utility and energy regulators have more power, giving them oversight into overall resource planning and management. The hope here is to reduce grid volatility and slow down or reverse energy costs. 

Develop New and Emerging Energy Sources 

For decades, traditional fossil fuels like coal, oil, and natural gas have ruled the generation landscape. 

Today’s electricity generation mix, however, is more diverse, thanks to innovative clean energy technologies. Illinois’ CRGA continues to promote new energy sources, allowing the state to develop new long-term renewable energy partnerships. 

But partnerships don’t mean much if residents don’t save money on their electricity bills. To reduce costs and encourage development, the CRGA expands the maximum size of community solar projects from 5 MW to 10 MW. By doubling the size, lawmakers hope to create more opportunities for mid-scale solar projects while improving grid reliability. 

Of course, embracing new technology means striking while the iron is hot. Although Illinois wants to establish a long-term approach to clean energy development, federal funding may not be available. To that end, the state has reduced red tape, fast-tracking renewable energy projects to beat federal tax credit deadlines. 

The move makes sense, considering the current administration’s stance on clean energy. The CRGA essentially allows Illinois to “get while the getting is good” and receive money before federal sunsets arrive. 

Protecting Consumers 

One aspect of the CRGA that appeals to many people is the establishment of a Solar Bill of Rights. 

Essentially, the Bill of Rights solidifies several key protections for residents, including those investing in low-voltage solar projects. 

According to the CRGA, “Notwithstanding any provision of this Code or other provision of law, the adoption of any ordinance or resolution or the exercise of any power by a county that prohibits or has the effect of prohibiting the installation of a solar energy system or low-voltage solar-powered devices is expressly prohibited.” 

Long story short, HOAs, municipal governments, and counties can’t stop residents from taking advantage of solar energy. This is a win for consumers, as it opens the door for anyone to generate solar energy. For example, renters could one day invest in ultra-small-scale systems to reduce costs. 

The CRGA also creates and expands Virtual Power Plant programs in the state for people with battery storage systems. According to the law, residents enrolled in a VPP can receive a $250 rebate per kWh of storage capacity. 

Create and Update Integrated Resource Plans 

One of the most critical pieces of the CRGA is the creation and expansion of Illinois’ Integrated Resource Plan. 

The idea behind IRPs is simple — save ratepayers money, maintain grid reliability, limit energy shortfalls, and improve energy portfolios. When done well, integrated resource plans put operators and ratepayers on equal ground. In this case, the state’s electric utilities must work in good faith to maintain ratepayer costs while planning for the future. 

Utilities must submit initial IRPs to the Illinois Commerce Commission by November 15, 2026. Subsequent plans are due on September 30, 2029, then again four years later. 

Cautiously High Hopes 

The CRGA is ambitious, but Illinois Power Agency officials say the law could save ratepayers $13.4 billion over two decades. All told, net savings could sit around $12 billion. 

Skeptics, though, think the estimated savings could be on the high side. They contend that battery subsidies may trigger additional costs, forcing consumer rate hikes. The jury is still out, but battery costs have fallen dramatically in only a few short years. 

Meanwhile, state officials say the CRGA can limit energy waste and provide much-needed relief for low-income residents. The Citizens Utility Board (CUB) echoed the response, suggesting $1 invested in energy efficiency could return $2 or more. 

But how does the math work? The CUB believes investments in the grid and alternative energies today could help the state avoid expensive future grid upgrades. 

How Does SB-25 Impact Illinois and State Sovereignty? 

The truth is, energy bills are rising, especially for low-income residents. 

The CRGA aims to improve affordability by increasing and diversifying the amount of power produced in the state. As more power comes online, costs go down, boosting affordability. 

At the same time, new and emerging energy generation options help modernize an aging electrical grid. The introduction of more solar systems, virtual power plants, and microgrids reduces reliance on the larger grid. Similarly, smaller grids and backup systems reduce the impact and spread of outages when they occur. 

Equally as important as keeping rates low is preparing for the state’s energy future. Combining solar, wind, energy storage, and even nuclear power plants helps reduce the need for fossil fuels. In turn, better technology enhances our ability to produce and distribute power. 

States Control Their Fates 

Illinois is among a growing number of states expanding their investment in clean, renewable energies. 

For example, Texas has heavily invested in renewable energy, becoming a leading solar and wind energy producer. The bet has paid off handsomely so far, as they’ve recently set generation records for solar and wind. 

ERCOT, which controls Texas’ electrical grid, recently reported new generation records, thanks to high winter wind speeds and sunny spring days. In 2025, the state also saw a large number of renewable projects come online, boosting overall production. 

As federal support for renewable energy fades, states like Illinois are spearheading state-led initiatives. Time will tell what these programs may look like in 5-10 years, but for now, they’ve given developers and utilities renewed hope. 

Will Other States Follow Suit? 

The solar industry can’t trust federal funding, which has sent a chill throughout the country. 

We’ve already seen the initial results stemming from the abrupt funding reductions for renewable energy. Tax incentives are ending sooner than expected, and Inflation Reduction Act programs have lost funding. In the current environment, states are now choosing to enact their own clean energy agendas. 

Luckily, solar developers and EPCs can access state and local government programs and find funding. The DSIRE database is especially helpful, compiling state and municipal programs designed to make renewable energy more affordable. 

Community and utility-scale solar developers can also find hope in community solar programs. Currently, 19 states and the District of Columbia have community solar programs, which establish microgrids and help consumers access low-cost renewable energy. 

A Blueprint for Other States 

Although Illinois’ new law isn’t active yet, in the coming months, the CRGA will give more teeth to the state’s previous 2021 law. It will also join many other progressive programs across the United States. 

The majority of U.S. states have some sort of clean energy portfolio, but many Southeastern states haven’t signed on. If successful, Illinois’ process could one day serve as a guide for other states with clean energy goals. 

We’ll eventually see how utilities, ratepayers, and the state will adjust, but renewable energy seems safe for now.

Where Do ITC and PTC Solar Credits Stand in 2026?

Posted on by Gino Geruntino

When President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) last July, sweeping changes blasted the renewable energy industry. 

For an industry seemingly finding its stride, the OBBBA was a baseball bat to the knees. Nearly every sector was impacted, including solar, and developers, manufacturers, and consumers alike suffered. 

And while it’s true that misery enjoys company, the changes leave developers and consumers scratching their heads. Unfortunately, the solar industry must now find ways to expand with less federal help. 

Tax Credits Fading Out 

At a time when AI growth is causing electricity use to soar, the solar industry lost part of its appeal. 

The OBBBA brought drastic changes to tax credits and incentives for investing in solar projects. Most notably, it shortened the sunset dates for critical ITC and PTC credits originally extended by the Biden administration. 

But where does the industry stand in 2026, and what can we do to preserve years of positive momentum? 

Residential Solar 

If any part of the solar industry took the brunt of the changes, it was the residential solar sector. 

Under the Inflation Reduction Act, homeowners were eligible for a 30% federal tax credit applied to the cost of their solar installations and battery storage projects. However, to receive the credit for a battery project, applicants had to meet several requirements, including: 

  • 3 kWh installed with a new or existing solar project 
  • Exclusive solar charging for the first year 

Most notably, the Residential Clean Energy Credit (Section 25D) ended in December 2025.  

Once the OBBBA took effect, homeowners scrambled to get solar projects installed and operating by the December 31 deadline. Those who beat the buzzer and got their projects finished weren’t fully in the clear, however. To fully qualify, homeowners had to own the system AND have an income tax liability for the tax year. 

How Did the Industry React? 

Homeowners were left scrambling when news broke that the residential ITC cliff was approaching in a matter of months. 

With a short deadline, homeowners rushed to get solar projects online to take advantage of the ITC. Projects that missed the deadline weren’t as lucky, missing out on the 30% federal tax credit. 

Despite losing a massive residential solar incentive, there is still another way to qualify for savings. If they choose to, residents can invest in solar through commercial companies. In this scenario, businesses can claim a 48E tax credit through leases and power purchase agreements. 

The 48E tax credit does two things that help residential solar development. First, companies get to take advantage of federal tax incentives to encourage development. Secondly, businesses receiving the credits can pass along those savings to residents as lower-cost power. 

Where Does Residential Solar Stand Today? 

Without federal tax benefits, today’s homeowners are in a worse position than they were a few short months ago. 

Luckily, residents have a few other cost-saving avenues to make going solar more affordable. A growing number of states are stepping up to the plate, instituting trust funds, assistance programs, and other incentives.  

For those interested in going solar, the N.C. Clean Energy Technology Center’s DSIRE database outlines available state and municipal solar incentive programs. 

Commercial and Utility-Scale Solar 

Commercial and utility-scale solar didn’t suffer as much as residential, but developers are still licking their wounds. 

The problem here isn’t the elimination of crucial tax credits, but rather the timing of them. Under the Inflation Reduction Act, ITC and PTC credits were in place at current levels until 2032. Afterwards, there was a gradual multi-year sunset period. 

This is no longer the case with the OBBBA. Under the new law, Section 48E ITCs now face a cliff at the end of 2027. The timeline is drastically shorter, forcing companies to move projects along much more quickly and with fewer protections. 

For a wind or solar energy project to qualify for a 48E or 45Y credit, construction must begin by July 4, 2026. But the July 4 cutoff is more than a convenient deadline. Starting before then allows developers to qualify for a four-year safe harbor, giving them more time for the job. 

But missing the start date cutoff has dire consequences. Any projects started after July 4, 2026, must be fully operational by December 31, 2027. For large-scale utility projects, the timeline might be nearly impossible. Smaller community installations, however, could meet the December 2027 deadline with an efficient process. 

Are Safe Harbors Still Safe? 

Although developers and EPCs still have access to safe harbor coverage, they still pose issues. 

For example, the IRS recently changed the “Five Percent Safe Harbor” rule following Trump’s Executive Order 14315. Also known as “Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources,” the E.O. says, in part: 

“This includes issuing new and revised guidance as the Secretary of the Treasury deems appropriate and consistent with applicable law to ensure that policies concerning the “beginning of construction” are not circumvented, including by preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built.” 

So, what does this jargon mean, and what does the government now consider “appropriate and consistent?” 

In short, solar developers must use physical work tests exclusively to prove work of a “significant nature.” Thankfully, the thresholds apply to both on-site and off-site processes, including manufacturing parts and system installation. However, preliminary work like planning, research, financing, testing, permitting, and clearing land is NOT included. 

Although the IRS changed the rules, low-output solar facilities (less than 1.5 MW) still fall under the Five Percent Safe Harbor rules. 

Batteries Avoid the Brunt of Rule Changes 

In a surprising twist, battery storage is largely safe from new rules instituted by the OBBBA. 

Battery storage projects keep their tax credits through 2033, but installations must comply with Foreign Entities of Concern rules. The rub here is that many of the companies and businesses in the battery storage supply chain fall within FEOC. 

China is one of several countries deemed a “covered nation” in the FEOC, which also includes North Korea, Russia, and Iran. Though every case is different, companies involved with these four countries typically don’t comply with the rules. The result is an industry forced to find alternative solutions to meet domestic and friendly-nation production. 

Domestic battery manufacturing is still a nascent industry in the U.S., so short-term availability and sourcing may struggle. The good news is that as near-shore and onshore production picks up steam, we could see long-term availability. 

New Year, New Taxes 

Finally, 2026 also brings a few other new tax surprises, including Prohibited Foreign Entity (PFE) rules. 

Introduced in the OBBBA, the PFE rules impact the 48E ITC, 45Y PTC, and 45X manufacturing tax credits, among others. Basically, the rules prevent Specified Foreign Entities (SFE) and Foreign-Influenced Entities (FIE) from claiming tax credits. Similar to the FEOC rules, SFEs include China, Russia, North Korea, and Iran. 

Businesses should also be careful around the new Applicable Payment Rule, which states that if an SFE is paid in a way that benefits them and grants control over a facility, the taxpayer can’t claim credits. The reason this rule is important is that it’s effective within the first 10 years of a site entering service. 

Operators must be aware of every company they work with, because one mistake could lead to trouble. For example, if an operator makes site maintenance payments to an SFE-associated company, the IRS can potentially claw back 100% of the claimed ITC. 

Finally, there are new Material Assistance Cost Ratio Rules, which restrict the percentage of products sourced from PFEs for projects. Though similar to the domestic content rules we’re already familiar with, there is a key difference between the two. Unlike domestic content thresholds, Material Assistance rules cap total PFE components at 40%; otherwise, companies lose the credit. 

Additionally, the percentage of non-PFE content increases annually, making the benchmark harder to reach. 

Solar’s Fight Continues 

The One Big Beautiful Bill Act was a shot across the bow for solar and wind companies. However, it also generated opportunities for the industry to find creative solutions to complex energy production problems. 

Though residential solar lost its investment tax credits, homeowners can still participate in solar energy through PPAs and leases. They also have access to many state and local incentives, provided they know where to find them. 

At the same time, utility-scale and community solar companies have until December 2027 to complete their projects. Without a safety net, the best option most projects have now is to break ground before July 4, 2026. That would allow them to activate safe harbor rules and buy additional time. Similarly, battery storage may become more popular as it maintains its tax incentives, albeit with a few more strings attached. 

The point is, even though solar took a hit from the federal government, the future remains strong for renewables. Electricity generation and demand are issues in the U.S., and the grid is inflexible and unreliable. Meanwhile, tech companies have employed solar solutions to power massive data centers. 

At this point, the solar industry is entrenched in the United States. Despite headwinds, more doors will open for solar companies, either at the state or even local level. It’s just a matter of time.

The Perks of Owner-Furnished, Contractor-Installed (OFCI) Processes

Posted on by Gino Geruntino

In business, time is money; the same rule applies to solar development. 

Solar projects are massive investments, so finding innovative and simple ways to save money and improve profits is key. One method gaining momentum in the solar industry is “Owner-Furnished, Contractor-Installed” processes designed to save time and money. 

While it seems like a simple concept, OFCI relies on pinpoint accuracy and careful planning. But when it works, solar companies reap the rewards, and projects move much more quickly. 

So, what does “Owner-Furnished, Contractor-Installed” mean and how does it work? More importantly, who benefits from it and why should solar companies evaluate OFCI as a cost-saving solution? 

What Is Owner-Furnished, Contractor-Installed (OFCI)? 

OFCI programs aim to consolidate material sourcing with the solar EPC or developer rather than the subcontractor. 

Previously, subcontractors would source project materials, then mark up the cost when invoicing the EPC or developer. This process, known as Contractor-Furnished, Contractor-Installed (CFCI), allowed the subcontractor to use familiar components and increase margins. While the system worked for the subcontractor, the EPC paid more but had less visibility. 

By moving material sourcing to the EPC or developer, projects are inherently less expensive. And while subcontractors may lose some profit margin on materials, they benefit in other ways. 

OFCI Accomplishes Several Things 

For cost-conscious developers, the need for OFCI goes beyond saving a few dollars. 

OFCI streamlines and standardizes the sourcing process, making it easier to replicate and scale. When done well, it’s easier for companies to track projects, keep them moving, and shorten timelines. 

Reduced Overall Costs for Developers 

In the past, the developer paid marked-up prices for materials sourced by the subcontractor. 

OFCI takes sourcing out of the subcontractor’s hands and shifts it to the developer, eliminating upcharges and reducing overall costs. However, the lower cost comes with the caveat of more work. 

Developers must create and maintain relationships with distributors and manufacturers to ensure a steady supply of materials. They also need to coordinate with installers to make sure materials go to the right place at the right time. Under the CFCI model, the installer handles material delivery. Without that in place, the installer becomes dependent on the developer to keep the details in line. 

More Control = Consistency 

Every utility-scale solar project is unique, but there’s still room for standardization across job sites. 

In many cases, solar developers are working on multiple sites simultaneously. If each site uses different materials sourced by subcontractors, it can be hard to keep track of everything. OFCI solar processes give the EPC more control over the materials sites receive, simplifying sourcing across every project. 

By using the same components, EPCs can accomplish several goals. First, it reduces surprises because crews know what parts will arrive. Second, workers build confidence and comfort with specific components, helping them work faster. 

Finally, standardizing product selections makes ordering much simpler. The developer can verify stock counts and order materials as needed rather than chase suppliers for unique parts. 

Subcontractors Become More Effective 

OFCI systems can also positively impact subcontractors. 

When the EPC or developer orders pre-fabricated materials, installers spend less time in the field assembling them. Pre-fabricated solar photovoltaic (PV) wire, for example, may arrive at the worksite already bundled and with connectors attached. For workers, all they need to do is connect each wire to a solar panel and move on. 

But what about the subcontractor’s lost margin on sourced materials? In many situations, the subcontractor can easily replace the loss through speed. If the developer orders pre-fab materials, the team can move much faster in the field. This means less time assembling connectors, pulling single wires down long aisles, and performing other tedious chores. 

Additionally, using the same materials across multiple sites also creates familiarity and confidence. The result is a faster installation with fewer mistakes and delays. 

Over time, OFCI systems could lead to more projects completed annually. 

Developers Juggle Logistics 

One thing to remember about Owner-Furnished, Contractor-Installed projects is that the developer now handles logistics. 

Keeping track of materials, timelines, and work crews can be daunting. However, successful project management often comes down to answering several questions. 

How will the developer or owner coordinate deliveries? Companies need to know when materials will arrive on site and who will deliver them. 

Product delivery is a balancing act, and mistakes can create a slew of problems. Delivering materials too early to the worksite can create confusion and potentially lead to product damage as it sits. Of course, delivery delays or product shortages bring projects to a halt. When this happens, everything slows down, putting timelines and other slated projects at risk. 

Who will hold onto solar project warehousing stock? Developers often work on multiple utility or community solar projects concurrently. Those installations often use tens of thousands of feet of wire, hundreds of racks, panels, and other parts. 

Companies may operate using a “Just in Time” approach to save space and costs, but sometimes it isn’t possible. If EPCs choose to warehouse materials, they must avoid overstocking and paying for additional space. 

At the same time, companies should maintain adequate stock to address needs as they arise. 

Can the EPC or developer control the supply chain? More control, more responsibility. Included in that stress is the chore of evaluating and choosing manufacturing partners and vendors. 

Once the company finds suitable partners and vendors, the focus shifts to establishing transport, product tracking, and delivery methods. And if materials come in from overseas, shipping routes, tariffs, and other variables come into play. 

Beyond delivering components from Point A to B, companies must also contend with the risk of damaged goods, late arrivals, and other problems. When issues arise, the company is responsible for getting the job back on track as quickly as possible. 

Risk Meets Reward 

The United States’ clean energy boom has brought solar installations to the forefront. It has also changed how solar companies create, manage, and improve their bottom lines. 

If done correctly and conscientiously, solar companies and contractors can both benefit. But the key to making OFCI activities work for everyone involves building and maintaining strong relationships. Developers need to have faith and a good rapport with their vendors, manufacturers, and logistics teams. Meanwhile, contractors must find developers with strong industry records and work closely with them. 

When EPCs consolidate processes, they also take on additional risk. However, the moves could lead to shorter project timelines, streamlined operations, lower costs, and more long-term savings.

Stronger Bottom Lines: Reducing Utility-Scale Solar Installation Costs 

Posted on by Gino Geruntino

If we could sum up the solar industry in 2025, it might sound like the French electronic duo Daft Punk. 

“Work it harder, make it better, do it faster, makes us stronger.” 

As the solar industry adjusts to a rapidly changing political and economic environment, protecting the bottom line is crucial. Solar developers and EPCs are looking for every advantage possible to keep costs down, including: 

  • Performing installations faster 
  • Finding stronger, more reliable solar panels 
  • Investing in cost-effective racking systems 
  • Using pre-fabricated modules and factory-made PV wire 
  • Implementing automated systems to control labor expenses 


With the right combination of cost-cutting measures, utility-scale solar developers can reduce costs, maximize labor, and improve project longevity and reliability. 

Automation Enhancements 

No matter how you might personally feel about AI, robots might not be a bad thing, especially for an industry dealing with labor shortages. When used effectively, automation technology augments workers’ skills, making installations faster and, ultimately, less expensive. 

But how exactly do automated systems accomplish that goal? 

It all comes down to minimizing the impact of repetitive tasks for workers. Companies like Charge Robotics are taking the lead, creating fully autonomous bots like its Sunrise construction system. The robot quickly assembles and installs solar bays on-site while also performing quality control checks. 

For solar developers, the extra set of metal hands goes a long way. Robotic systems reduce jobsite risk and improve overall quality and speed with fewer workers. But Charge Robotics isn’t the only name in the game–it’s one of several start-ups planning to change the solar industry overnight. 

AES’s Maximo installs solar panels onto trackers using artificial intelligence (AI). The robotic system is technology agnostic and easily adapts to work with a variety of clamps, trackers, and panels. 

Beyond being an installation bot, Maximo takes on other incredibly important tasks on the project site. As it works, the system collects data, keeping solar developers informed about site progress and potential concerns. 

It also handles dangerous tasks formerly carried out by crew members. Instead of having a worker install panels onto trackers high above the ground, Maximo does it. Workers safely guide the robot from the ground, allowing it to work without putting crews at risk of falling. 

AES’s invention is already making waves, earning support from Amazon. The online retailer has used Maximo for several solar + storage sites that the company has invested in. 

The Need for Speed (and Safety) 

Regardless of the system, the goal is always the same: speed, safety, and simplicity. 

Robots move faster than people, can lift heavy panels by themselves, and place them with pinpoint precision. They also have a keen eye, powered by machine learning, to constantly perform quality control throughout the project. 

But, despite their skills and strength, robots and automated systems aren’t here to displace their human counterparts. If anything, they augment our strengths and help us do more with fewer resources. 

Robots don’t complain about performing repetitive tasks and can do those jobs faster than a crew of people. In the meantime, workers can focus on big-picture problems to keep projects moving smoothly and fix issues. Machines also alleviate hiring problems that solar developers face, especially in harsh desert environments where it’s tougher to attract quality talent. 

Piecing Together Projects 

Despite slightly higher upfront costs, factory-made components and modular systems can drastically reduce labor costs and installation times. 

The solar industry is facing incredible challenges, forcing EPCs and developers to find creative solutions to do more with less. For companies with tight deadlines, higher initial costs are worth potential long-term savings. 

Today’s solar projects are easy to assemble on site, coming together like giant building blocks. From start to finish, pre-built, factory-made parts simplify production and turbocharge development. 

Foundations 

Foundations are crucial to any solar project. These systems hold racking steady and protect installations from shifting and corrosion caused by severe weather and the environment. 

Depending on the site’s location, solar builders have a wide range of concrete ballast options. Manufacturers create the foundations off-site, then truck them in, saving crews precious time. 

But why should crews consider a factory-made concrete ballast when they can simply pour foundations? When workers pour concrete out in the field, they run the risk of weather, debris, and even the site itself causing issues. If the concrete doesn’t cure correctly, it won’t be as strong, reducing long-term reliability. 

By purchasing pre-made concrete ballasts, weather isn’t a factor since crews don’t need to wait for curing. The result is a plug-and-play building component ready for decades of operation. 

Racking and Frames 

Solar panel racking supports the panels themselves and, in some cases, tracks the sun as it moves through the sky. They attach directly to the foundation and serve as a skeleton holding everything together. 

To hasten construction projects, developers can order pre-drilled racking systems with the hardware already attached. Other times, the racks and frames may also include pre-installed DC wiring. With most of the work already done, crews only need to attach the panels and tighten the bolts. 

Wiring and Connectors 

If racking is the skeleton, then PV wire and connectors are the blood vessels and nerves. They transport solar energy collected by the panels and carry it to the combiner box as DC electricity. 

Years ago, workers would have to carry individual strings of PV wire down long aisles of panels to connect everything. Today, manufacturers like Sun-Pull offer customized PV wire bundles on single spools, cutting installation times and labor costs. 

Pre-bundled PV wire gives solar developers the option to do more with less. For example, what used to take a crew of workers a day to complete now only needs a couple of hours with 2-4 people. Sure, bundled wire costs more, but it makes up for the higher price with faster project speed and better resource allocation. 

Meanwhile, workers use connectors attached to the ends of PV wire to safely and tightly connect the wiring to the panels. Depending on the project and timeline, manufacturers like Sun-Pull can attach factory-made connectors to the PV wire. While it isn’t an exciting feature, it guarantees that one type of connector is used throughout the site. If crews accidentally use multiple connector types, the risk of poor or loose attachments spikes, potentially creating performance and fire risks. 

Pre-fabricated connectors also eliminate potential failure points in the field. Workers have varying levels of job experience, and installation quality varies from one worker to the next. If the connection isn’t tight or if an uncaught mishap occurs, it could lead to arcs, sparks, or system faults. 

Manufacturers quality control every product leaving the facility, giving solar EPCs peace of mind on the jobsite. This level of control in the process guarantees the connectors will work as intended for years to come. 

Wire Management 

From clips and clamps to ties and straps, utility-scale PV projects have no shortage of wire management options. 

At their core, management systems protect PV wires from potential dangers, including accidental contact, severe weather, and environmental hazards. Depending on the environment, budget, and application, project managers have a bevy of shapes, sizes, and materials available. This allows developers to choose what works best for them, from simple cable ties and S-clips to more complex conduit trays. 

DC Combiner Box 

Combiner boxes are as unique as the solar site itself. To that end, manufacturers can design and build boxes for every specific need. 

The process for that is straightforward but requires pre-planning. Customers must have exact specifications for what they need, which the manufacturer uses to build the box. This includes installing surge protectors, fuses, and terminated wire harnesses to safely collect and combine electricity. 

After strict quality testing, the manufacturer ships the combiner box directly to the jobsite for installation. 

Protecting the Bottom Line 

Finding cost savings on community- and utility-scale solar projects helps developers save money far beyond their current projects. 

Of course, it’s also safe to say that not every project will benefit from the same solutions. Every location has unique opportunities and challenges impacting available options. 

Modular systems and automated processes hold several advantages over traditional construction industry methods. Robots installing pre-made parts move much faster than a crew of workers, with the added benefit of checking their work along the way. This frees crew members to focus on other parts of the project that may need additional attention. 

Pre-made parts reduce the impact of weather during construction and make sites safer. In a factory setting, manufacturers control production in a stable, consistent environment. Once workers test the components, they can connect them like a huge set of building blocks. 

Higher Quality, Less Hassle 

In manufacturing facilities, quality is critical. 

Factories can QC and QA all components before they leave the factory, reducing the threat of poor installation. This is especially true for PV wire, connectors, and other sensitive equipment, where inexperience could hurt quality. 

More importantly, manufacturers are masters of high-level precision. They have the technology and resources to ensure everything fits, works, and performs as it should. By investing in prefabricated materials, crews only worry about installation. 

As a result, solar projects require fewer highly experienced workers to oversee everything, easing labor issues. 

Scaling Up 

When everything is modularized, it’s easy to scale up or down based on what parts you need. 

Standardization creates scalability, thanks to more accurate inventory tracking, maintenance procedures, and product acclimation for workers. As the team becomes more familiar with each piece of the puzzle and its processes, they move more confidently. The added speed means shorter timelines, more projects, and healthier bottom lines. 

Standard pieces and processes also affect cost structuring, as similar designs and situations may need similar inventories. Over time, familiarity leads to stronger forecasting and budgeting for future projects. 

Bottom Line Breakthroughs 

Solar projects aren’t cheap, but it’s possible to find cost savings and other bottom-line improvements. 

The industry has no shortage of innovative technologies hitting the market every year. For savvy solar developers, understanding the industry, building relationships, and staying on the cutting edge go a long way. 

For those builders, it means investing in automated solutions that reduce labor costs and improve safety. It also means reducing material costs through better planning and scalability without cutting corners. 

Solar development isn’t slowing down, even as the industry adjusts to rapid change. Those embracing the world around them will have an incredible leg up on the competition.

Will Solar Interconnection and Permitting Improve in 2025?

Posted on by bop-admin

In 2024, the Solar Energy Industries Association (SEIA) said the United States added about 50 GWdc of grid capacity. This was the second straight year solar energy set records, with utility-scale solar adding more than 41 GWdc. 

The signs for solar EPCs look great, but there’s still plenty of room for improvement. Despite excitement for solar, the industry faces permitting and interconnection concerns. 

A Two-Headed Beast 

Permitting and interconnection requests are a 1-2 gut punch for many solar developers and EPCs. 

Developers often find themselves buried in red tape during the permitting process. From building, zoning, and electrical permits to land disturbance studies, compatibility reports, and financial data, it’s a seemingly unending process. It isn’t specific to local government, either; federal and state approvals also matter. 

The other problem is interconnection. Interconnection is the process of attaching solar sites to the larger electrical grid. It includes several studies assessing how solar sites could impact grid operations. Depending on the results, developers may have to alter projects or wait for additional studies. 

Worst of all, developers may have to pay for the interconnection after waiting up to five years for results. Not only is the process expensive, but some utilities may be unwilling to help solar sites connect to the grid.  This leads to even more developer costs and delays. 

Could Help Be Coming? 

We’re still far from a perfect system, but the government wants to make solar development easier. 

The Inflation Reduction Act became law in August 2022, creating more streamlining opportunities and funding. At the same time, the Federal Energy Regulatory Commission (FERC) is pushing to simplify interconnection and permitting. 

This is crucial for the solar industry and the country’s growing electricity demand. Data centers, EVs, and hotter temperatures have pushed electricity use to new heights. Renewables like solar and wind could potentially hold the keys to energy development, but we must collaborate. 

What’s the Current Solar Landscape? 

It shouldn’t be surprising to hear solar capacity waiting in the queue is skyrocketing. 

In December 2023, about 2,600 GW of generation and storage capacity were waiting for grid connection. Of this total, 95% were solar, wind, or battery sites. In fact, solar and battery projects made up 80% of all additions in the queue. 

At the same time, interconnection request times are exploding. In 2008, the average wait was less than two years. For projects built between 2018 and 2023, wait times were about four years. By the end of 2023, projects could languish for as long as five years. 

So, what gives? 

Clunky and Costly 

Electricity use is rapidly rising. But what’s making it difficult for solar operators and utilities to increase grid capacity? 

The Federal Energy Regulatory Commission (FERC) believes it can pinpoint our nation’s electricity generation problem to a few key issues. 

For example, FERC has highlighted the number of interconnection requests these days. In April 2024, Berkeley Lab said around 11,600 projects were waiting to connect, totaling 2,600 GW. As more projects join the queue, delays will keep growing. 

The agency highlighted other issues, including transmission capacity, delayed expansion and upgrade investments, and high interconnection costs. Unfortunately, this results in long delays in the interconnection queue and a higher risk of project withdrawals. 

Permitting Problems 

It’s difficult to break ground when the permitting process is a gauntlet. 

States, counties, and municipalities have different approaches to solar energy. While some embrace it, others adopt a “not in my backyard” stance. Though several counties have gone so far as to ban utility-scale solar, no state has banned large-scale solar projects. 

Although federal regulations govern some aspects of solar development, individual states are different. Several, including Utah, Colorado, Arizona, and New Mexico, have adopted and implemented federal rules. Other states like California and Nevada use federal regulations and supplement them with state-level ones. 

With so many moving parts, solar developers can struggle to keep track of things. Luckily, government organizations like the Environmental Protection Agency (EPA) have compiled databases, guides, and procedures at the state and federal levels. 

Addressing Problems 

Thanks to inconsistent guidelines and processes, there’s plenty of work to sort everything out. 

A single entity, government, or industry organization can’t solve our problems. The cure requires a top-down approach with input from everyone, but someone has to take the lead. 

Interconnection 

SEIA is collaborating with FERC and the Department of Energy to create reforms to improve interconnections. As a result, FERC is pushing interconnection rules to reduce red tape and integrate renewable energy faster. 

The moves coincide with several Independent System Operators struggling to add capacity, including CAISO, NYISO, and MISO. These issues lead to long delays and other problems. As more interconnection applications flood in, ISOs must make the pieces fit without overloading aging infrastructure. 

Updated Rules 

FERC’s rule changes include critical updates to Order 2023 that improve how interconnection requests are handled. 

Under previous rules, the system handled interconnection requests using a “first in, first out” model. While the system works when the queue is short, problems quickly develop as requests pile up. Additionally, under the “first in, first out” system, projects didn’t need viable projects to apply. 

The result was a slow, clunky system. 

Order 2023-A clears up some confusion and allows for faster studies. Under 2023-A, the system installs a “first ready, first served” format. This requires developers to have funding, property, and other assets ready before applying. 

Once the request is in, another Order 2023-A update kicks in. Previously, studies took place one at a time. Order 2023-A introduced study batching, allowing grid operators to perform several studies simultaneously. The move saves time, money, and labor costs by letting grid operators make several decisions (and upgrades) together. 

Tightening Up 

Improving the review process saves time, but what happens if someone drops the ball? 

Under Order 2023-A, developers must be more prepared with financing in place alongside additional site information. By forcing developers to do more leg work before submitting, operators see fewer speculative projects. 

But the onus isn’t entirely on developers to keep the interconnection queue short. Transmission providers must be more prepared to address studies. If operators delay reviews or miss a deadline, they can face penalties. 

Solar Permitting 

Improving the interconnection process is only half of the solution. To get to the heart of the matter, officials must tackle permitting, too. 

One way of making permitting more efficient is to make it more welcoming – starting with the cost. One such program is SolSmart, funded by the DoE’s Solar Energy Technologies Office.  

SolSmart is a nationwide initiative to improve solar development by assisting municipalities, counties, and other organizations. 

By helping local authorities better understand and adopt national practices, SolSmart reduces soft costs like permitting, zoning, and more.  

Its success has led to further investment, including an extension allowing the program to operate through 2027. 

Kicking Up the IRA and BIL 

Two Biden-era laws are rounding into form, with provisions to make solar development more efficient. 

The Inflation Reduction Act and the Bipartisan Infrastructure Law have funding attached to them specifically for improving and modernizing the grid. The funding also improves the permitting process for federal lands to encourage solar development there. 

Additionally, BIL and IRA funding includes several incentives to promote viable solar projects and expedite queues. 

Other Potential Reforms 

It didn’t make it out of the Senate, but the Energy Permitting Reform Act of 2024 had several provisions for solar development and permitting. 

The bill proposed accelerated leasing and permitting on federal lands and establishing clear deadlines for renewable projects like PV systems. It also simplified renewable energy environmental reviews, which can take months to years to complete. 

Most importantly, the bill would have codified a 50 GW renewable energy generation goal for federal lands by 2030. 

Making the Most of the Situation 

Permitting and interconnection processes are difficult and possibly broken. But it doesn’t mean solar developers should sit idly and wait for conditions to improve. 

Develop Partnerships 

The easiest way to navigate solar development red tape is by building good relationships with government sources. Local, state, and federal departments have similar goals but solve problems differently. 

Developers should work closely with each layer of government to get approval for each step. These sources also come in handy if rules change. Additionally, resources like the RAPID database help with best practices, permitting documents, and other information. 

Stay Prepared 

Preparation is paramount, especially as FERC prioritizes viable, well-planned projects. Filings should contain as much information as possible, including assessments, environmental surveys, funding sources, and land data. 

But solar contractors and developers don’t embark on utility-scale projects alone. They build teams with strong strategic partners, including municipalities, interconnecting utilities, and state officials. When speed bumps approach, these partners can help with documentation and other preparation. 

Know Your Permits 

Permit requirements and combinations differ across municipalities, counties, and states. For example, agencies like the Bureau of Land Management (BLM) have processes specifically related to building on federal land. The RAPID database is, once again, an excellent resource for the latest permitting and bulk transmission regulations. 

During difficult preparations, solar companies should hire an experienced consultant. Find a professional in the state where the project will take place and rely on them to help guide the permitting process. Hiring a knowledgeable organization may be expensive but could reduce delays.  

Be Ready for Anything 

The truth is nothing in the solar industry stays the same for long. 

Governments are moving quickly to improve regulations and permitting, with FERC and other groups fixing interconnection methods. But with so much happening around us, keeping up with rapidly changing rules is essential. 

Be prepared, but ready to adapt when necessary. Preparing for every outcome isn’t possible, but adjusting quickly helps developers roll with the punches, limiting costly delays.

Going Domestic: Why Builders Want American-Made PV Wire

Posted on by bop-admin

If you’ve been paying attention, you’ve likely seen one news story after another hyping up the U.S. solar industry. 

We’ve seen years of growth as clean energies like wind and solar take over new generating capacity. In 2024, for example, solar comprised two-thirds (66%) of U.S. electricity-generating capacity additions. Overall, the solar industry installed about 50 GWdc of capacity last year, hitting a new one-year record. 

Tailwinds and Headaches 

So, what’s driving companies, utilities, and communities to dive into solar energy? As it turns out, several factors combined to get us here. 

The Inflation Reduction Act (IRA) has had a couple of years to come into form. Incentives made through the program extended and broadened solar tax credits, making large-scale solar projects a better investment. 

The IRA also created measures to develop sustainable domestic supply chains for solar panels, racking, and wire. Previously, solar companies imported foreign solar components, dealing with everything from long delays to questionable quality. The costs were lower, but the industry struggled. 

Today, domestic manufacturing is taking a monumental step forward. Recently, the SEIA announced the U.S. had reached a critical manufacturing milestone. Domestic solar module production capacity hit 50 GW, large enough to meet current U.S. demand. Backed by Section 45X and Section 48C tax credits, incentives bolster an already booming industry. 

Despite some potential governmental headwinds, industry experts are bullish on solar energy’s future. 

Does Buying Domestic Matter? 

The U.S. is encouraging developers to use American-made goods, including PV wire. But does domestically produced wire warrant the higher cost? 

In many cases, the short answer to that question is yes. Although all PV wires may look similar, subtle details impact quality, lifespan, and performance. We must also consider project scopes, including timelines, budgets, locations, and job requirements. 

Depending on the situation, American-made PV wire could be a cost-saver. 

Quality and Build 

Solar wire made in the United States meets or exceeds Underwriter Laboratories, National Electrical Code (NEC), and ASTM standards, including: 

UL 4703 – This UL standard is specific to PV wire. UL 4703 tests a wire’s ability to handle sunlight exposure, high temperatures, weather, and other threats. 

UL 1581 – Also known as the VW-1 test, UL 1581 is a vertical flammability test. Essentially, UL 1581 determines how much a flame propagates (spreads) along a wire section. 

ASTM B-1, B-3, B-8, and B-33 – These wire configuration standards correspond to specific wire types. In order, they are hard-drawn copper (B-1), soft-drawn copper (B-3), concentric lay twisted strands (B-8), and tinned copper (B-33). 

American-made PV wire undergoes heavy scrutiny, resulting in high transparency. Additionally, strict standards add a layer of safety to every product, ensuring the wire does what it should. This may not be the case with products shipped from overseas, as other countries’ standards may be less stringent. 

NEC Section 691 – This portion of the NEC corresponds to several aspects of utility-scale solar sites with generating capacity over 5 MW. It covers factors like operating voltages, disconnects, fire mitigation, engineering, and other critical safety measures. 

Supply Chains and Lead Times 

Timelines matter – whether it’s a utility-scale solar array or a small community solar project. 

One massive advantage American-made products have is their shorter supply chains. Because the manufacturing and shipping are both within the U.S., production lead times tend to be much shorter. Shipping times are also shorter because products don’t have to travel by boat to the United States. 

On top of the shorter shipping and lead times, buying from domestic manufacturers helps developers avoid tariffs and duties. Importers often pay tariffs on materials from other countries, adding costs to the products they buy. Duties, on the other hand, are taxes paid on imported goods. 

Domestic production is also handy if problems arise. When customers find defects in their solar wire, they can return it to the manufacturer easily. Because the route is much shorter, the amount of time it takes to switch the wire is faster. Cutting a weeks-long wait down to only a few days is crucial when developers are racing to meet looming deadlines. 

Weighing Costs with Lead Times 

If deadlines aren’t an issue and the company has time to wait, sometimes shipping products from overseas could be an option. 

Buyers take on risks with the purchase, including the threat of geopolitical issues coming into play and tariffs. However, despite longer customer lead times and riskier supply chains, developers could save money on large-scale projects by using imported wire. 

Budgetary Constraints 

Developers endlessly search for ways to deliver the best results with the most savings possible. 

To that end, U.S. materials offer solid production, quality, and price. American-made materials follow a strict production process to ensure higher durability, longer lifespans, and better manufacturing traceability. The result is a product that often lives up to the price point. 

But every dollar counts, especially when you’re dealing with solar systems with hundreds of aisles of panels. Wire is a pretty small piece of the overall budgetary pie, but as projects grow larger, so does the cost of wire. 

Project Requirements 

Sometimes, it isn’t about price, performance, or any other factor – the project just requires domestic PV wire. 

Over the years, solar projects have become more specific, especially as the federal government attempts to bolster domestic manufacturing. As a result, more solar projects are pushing to meet domestic content requirements like BABA. The products called for are then “spec’d in,” requiring developers to source those materials for the project. 

BABA, or the “Build America, Buy America” program, ties funding and tax credits to solar projects. For example, ITCs and PTCs contain language about using American-made materials in the site’s development. We wrote a blog about these rules, which you can find here. 

State and local domestic product incentives could also be in play, depending on the project’s location. 

The Case for Imported Wire 

So, with so much focus on domestic production, is there a place for imported PV wire? 

Imported wire can do the job, but it’s important to ALWAYS work with a trusted, vetted international partner. Different countries have different standards, so it’s on the developer to verify who they buy from is reputable. 

Price – Larger projects call for more wire – often to the tune of hundreds of thousands of feet. Imported wire is generally more cost-effective, reducing overall project costs. 

Access to In-Stock or Unique Products – On occasion, solar projects may call for uncommon wire, which could lead to longer lead times. Overseas vendors may have specialized products in stock, keeping projects moving on time. 

Once again, DO YOUR RESEARCH before purchasing thousands of feet of wire from an international vendor. A trusted partner can meet safety standards and be transparent about their processes, ensuring high quality. 

Small Line Item, Huge Impact 

Wire is a crucial component of any utility- or community-scale solar installation. Without it, electricity doesn’t move from the panels to the electrical grid. 

Buying American isn’t solely about supporting the Red, White, and Blue. Builders get faster shipping, fewer added shipping costs, top-quality products, and peace of mind. 

Some overseas products may have similar quality, but EPCs must do their due diligence. This means building trust and verifying those manufacturers produce high-quality products. 

At the end of the day, not all wire is the same. No matter where the wire comes from, only work with trustworthy manufacturers that meet the highest standards. The result will be better installations, safer projects, and long-lasting performance for decades. 

What is a Virtual Power Plant?

Posted on by bop-admin

One of the worst feelings is the dread one feels when the power goes out. 

Homes and businesses typically rely on electricity from local power generation plants. For the most part, consumers can reliably power our daily routines and keep life moving smoothly. But it also comes with a massive disadvantage. 

When the power goes out, electricity doesn’t go to end users, leaving them in the dark. While crews work feverishly to restore power, home and business owners worry about spoiled food, lost revenue, and boredom. 

However, emerging technology supported by electrification is changing how power disruptions impact our lives. These virtual power plants (VPPs) can keep the lights on using power created by our neighbors. 

Though they sound complicated, VPPs are the next step toward developing a more dynamic electrical grid. 

What is a VPP? 

By definition, a virtual power plant is a network of decentralized production and storage units combining to send power to the grid. 

But what does that mean in human terms? 

“Decentralized production and storage units” are basically all the pieces making up the VPP. These distributed energy sources (DERs) include everything from solar panels and batteries to electric vehicles (EVs) and smart products. If it can create, store, or control electricity, it can be part of a VPP. They also don’t need to originate from a singular location – VPPs can cover small or large areas. 

The best part is anyone can join a virtual power plant. Potential VPPs can include residential, commercial, industrial, or community-scale systems, though rooftop solar is the most common DER. 

VPP technology has existed for several decades but has taken off dramatically in the last ten years. The Department of Energy estimates that 30-60 GW of VPP grid capacity exists today. 

How Does a VPP Work? 

Let’s pretend a neighborhood has several rooftop solar systems, EVs, and smart homes. If these systems are part of a virtual power plant, utilities can draw from them during an emergency to power other homes and businesses. 

And just like that, a storm rolls through, knocking out a critical power line supplying electricity to several neighborhoods. When power outages or peak demand occurs, the utility activates the VPP. The utility can then remotely “talk” to connected DERs to turn thermostats down, reduce electricity use, and discharge EVs. 

Power flows from connected devices to the grid, sending electricity to other impacted neighborhoods. At the same time, energy loads drop, ensuring enough power is available. 

NOTE: This ONLY happens if the customer has opted in – VPPs require remote control from outside operators, like utilities. 

It might not seem like much, but localizing the grid to specific areas makes it more stable. Utilities can worry less about burning more fuel to send electricity across transmission and distribution lines and focus more on repairs. For end users, VPPs keep the lights on during peak times and emergencies using power supplied by others. 

VPPs Are NOT Smart Grids 

If you know the phrase, “A square is a rectangle, but a rectangle is not a square,” the VPP/smart grid relationship makes sense. 

Think of it like individual states in the nation. For example, Vermont is only one part of the larger United States. 

A VPP is a type of smart grid, but it’s only one piece of the larger smart grid infrastructure. Unlike a virtual power plant, smart grids cover the entire electrical grid, utilizing new technology to improve reliability and resiliency. 

Smart grids create large-scale two-way networks between microoperators or utilities and end users. Utilities can optimize electricity output and flow through the network, better incorporate renewable energy, and perform real-time monitoring. 

The result is a more dynamic electrical grid that reduces power loss, improves reliability, and saves money. 

Why They’re Gaining Steam 

Storms are getting worse, making power outages more severe. 

In 2023 alone, the U.S. experienced 28 “Billion Dollar” weather events, totaling an eye-popping $95 billion in damages. Weather is also the cause of more than 75% of power outages in the U.S., making it the grid’s number one threat. 

At the same time, the push for groundbreaking technology has never been stronger. More things rely on electricity than ever, requiring vast amounts of electricity. But with smarter electronics and power generation systems, we also have more opportunities to share power. 

Reducing Risk, One Neighborhood at a Time 

Our nation’s electrical grid is showing its age, as many pieces of infrastructure are well over 25 years old. 

Because of its age, the grid is more susceptible to damage caused by storms, physical threats, and cyberattacks. Unfortunately, when systems go down, people and communities are at risk. 

Communities once relied on central power plants to deliver electricity to neighborhoods, businesses, and other locations. But during outages, those people sat in the dark until power was restored. 

Under a VPP, during an outage or demand spike, the utility can remotely call on DERs to discharge power to the grid. Those opting into the program become power plants, drawing on stored energy to electrify those around them. 

Long-Term Savings 

Beyond grid security, VPPs reduce the number and size of electrical transmission and distribution peaks. 

What does that mean for the average person? When peaks occur, it stresses the grid since it has to support more electricity. The strain could lead to problems ranging from blown transformers and substation faults to overheated wires. Fewer peaks mean less threat of overloading the system. 

Peaks occur when there’s more demand than usual. To support the higher demand, peaking power plants generate electricity to meet the need. The problem is these power plants are expensive to run. Someone has to pay those costs, and it’s most likely the end user. 

VPPs take the pressure off power plants to meet peak demand by discharging electricity from DERs. As a result, the utility spends less money on fuel sources and limits energy loss along power lines. Meanwhile, customers receive steady power while VPP participants earn cash or credits for their electricity. 

Best yet, expanding VPP services goes beyond short-term savings. According to the Department of Energy, if the U.S. deploys 80-160 GW of VPPs by 2030, it could save $10 billion in grid costs. 

Taking Advantage of Incentives 

Like other renewable energy initiatives, there are programs and incentives available for VPPs. 

Depending on location, rebates and programs make commercial, industrial, and community-scale solar possible. For example, Maryland’s Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act requires investor-owned utilities to develop programs rewarding DERs and establish incentives.  

Utilities and community solar energy operators also have programs to finance and promote VPPs. The Department of Energy has funded various clean energy installations through Title 17, which provides loans for innovative projects. 

In other cases, state and local incentives for solar and other renewable projects could be available. And don’t forget to research what incentives stack, as organizations and programs cover different initiatives. 

VPPs for Consumers 

Consumers participating in virtual power plants and installing DERs add clean energy to the grid. As more clean energy systems come online, we rely less on large-scale power plants and fossil fuels. Over time, this may reduce electricity costs. 

Additionally, VPPs ensure homes and businesses have power during an outage, reducing other losses. From allowing small businesses to stay open to preventing food spoilage, small power providers keep everything running smoothly. 

As for the bottom line, consumers sending power to the larger grid earn money or credits on their energy bills. Those credits can offset upfront costs related to installing a solar system or battery or buying an EV. 

Downsides and Cautions 

For everything virtual power plants do well, there are some drawbacks to how the system operates. 

Despite owning the power they produce, consumers don’t always have control. When signing up for a VPP, consumers give operators the right to draw energy from DERs when necessary. If that happens, EVs, batteries, solar panels, and smart products connected to the network begin discharging and conserving power. 

Operators have also launched programs to pre-enroll consumers, though they can opt out later. Though it’s easy for utilities to enlist homes, businesses, and others into the program, consumers should be well informed. Participants must understand the program’s details, what to expect, and how utilities will compensate them. 

Not Enough Participants 

Experts believe virtual power plants could help address future energy demands, especially as older plants retire. 

Coal use has declined for years, with 4 GW of coal-fire capacity retiring in 2024. Before last year, retirements averaged about 9.8 GW each year for the previous decade. Worse yet, as retirement and deployment schedules fluctuate, we’re looking at a 200 GW gap in peak demand needs. 

VPPs could fill the potential gap, but the country must act fast. We need about 80-160 GW of capacity by 2030 to meet rising U.S. demand. The current total is only about 30 GW, far from the low-end goal. 

Not a Replacement for Grid Upgrades 

Electricity demand is rising rapidly, thanks to more electronics, a growing number of data centers, and a manufacturing renaissance. 

The result is a fevered effort to find new ways to generate power for the grid. Unfortunately, the current grid isn’t entirely ready for a wave of innovation. Instead, the design supports older power production methods powered by fossil fuels. 

The grid currently can’t reach its full potential because it desperately needs upgrades. Solar projects across the U.S. face massive delays because of red tape and interconnection problems. Other infrastructure has reached its usable lifespan, so we should replace and upgrade it. 

Everyone Plays a Part in Clean Energy 

Utilities, solar companies, businesses, government, and consumers all stand to benefit from VPPs. 

With planning and strong execution, we can cut costs throughout the supply chain. On top of the financial costs, VPPs help improve grid resiliency, leading to fewer power outages. Adding diverse electricity options also gives utilities more access to clean energy, reducing reliance on fossil fuels. 

The future is leaning toward cleaner power, but we still have lots to do. It means finding answers for rising demand, aging infrastructure, interconnections, and industry support. But as we check each box, powering our future becomes more possible.