Tag: clean energy

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 operators 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.

Dirty Jobs: Do Dust and Grime Lower Solar Panel Performance?

Posted on by bop-admin

How often do you look around your house and realize everything is a dusty mess. 

You clean, wipe, and feather dust everything, but keeping everything tidy is a never-ending battle. 

Well, take solace that you’re not alone. Solar farms around the world deal with the same problem with varying results. 

Efficiency Killers 

The average solar panel has an efficiency rate above 20%, though some prototypes can perform better. 

But no matter how efficient your panels are, dirt, grime, and other schmutz are a constant threat. It might not seem like it at first glance, but solar panels are constantly picking up debris called soiling. If not taken care of, those particles can cause headaches for utilities, communities, and companies. 

Luckily, soiling doesn’t have to be an energy-generation killer. With some planning, proactive work, and emerging panel cleaning technology, it’s possible to easily maintain efficiency. 

What Causes Dirty Solar Panels? 

As with anything left outside, dust, dirt, pollen, and debris collect on panels over time. 

When dirt, dust, and other particles fall onto solar panels, they obscure the cells, leading to lower efficiency. Unfortunately, this is a common problem for many solar installations, especially those in sunny, desert areas. 

Dirty panels may not seem concerning, but even a little dust and debris can hurt production. According to the National Renewable Energy Laboratory, soiling accounts for as much as 7% of annual energy lost in the United States. Unfortunately, in even dustier areas like the Middle East, losses can be as much as half. 

Although lost energy is an issue, let’s face it: money can be an even larger motivator. MIT experts suggest even a 1% reduction in power from a 150 MW solar project could cause $200,000 in lost revenue annually. As panels take on more soiling, losses can quickly mount, resulting in lower ROIs. 

Of course, soiling does more than impair solar power generation – it can be a headache. In many cases, a good rainstorm can wash away most dust, dirt, and other messes, but that’s if there’s regular rain. In areas where rain is rare, moisture can combine with dirt and grime to create a much harder-to-remove filth. 

Sometimes, it may make sense for workers to use a water jet to clean solar panels. This process uses pure water to wash away soiling – any impurities can leave water spots and deposits. Another option for solar sites is dry brushing. Brushing is generally less effective than water and may potentially scratch or damage panels. 

Not all Soiling is Dirt 

It might not cause the same issues as a thick layer of dust on a solar panel, but snow poses its own production risks. 

When snow lands on solar panels, it’s harder for sunlight to reach cells, limiting power generation. Beyond reducing power output, heavy snow can damage panels, racking systems, and sensitive tracking components. Workers must then replace expensive equipment, leading to further lost revenue. 

Unlike dirt and grime, snow is easier to deal with on a solar site. Workers can quickly remove snow with a soft bristle or foam brush, leaf blower, de-icing product, or heating system. Panels could also naturally clear themselves as snow and ice slide off the tilted panels. 

Melting snow and ice offers another benefit for solar sites, as the water may remove soiling. 

Powering Down: How Soiling Impacts Production 

When dust, bird droppings, dirt, snow, and other debris block solar panels, it can start a chain reaction impacting short- and long-term activity. 

But what types of problems can we expect, and when can we expect them? The answer isn’t always clear, but it depends on location, water resources, and cost. 

Reduced Power Generation 

We’ve covered this a little bit already, but when dust builds up on solar cells, it prevents them from collecting solar energy. 

Needless to say, a solar panel not collecting solar energy is a problem. Over time, more dust and grime build up on the panels, causing drastic production decreases. Even worse, soiling can cement onto the panels as dirt combines with resting liquids like dew or condensation. 

Soiling does more than impact initial energy output. Less generated power means less revenue, which hurts the bottom line and the project’s lifetime return on investment (ROI). 

Higher Maintenance Costs 

Dirty panels are more than a productivity killer – they can run up maintenance costs, too. 

If rain and melting snow can’t clean the panels naturally, crews might have to drive to the site and clean them. Unfortunately, cleaning solar panels isn’t as easy as hooking up a garden hose and getting to work.

NOTE: Never allow crews to clean panels using a pressure washer. High-pressure water can damage sensitive solar cells and panel seals, even from several feet away.

Utility-scale solar systems can cover hundreds of acres, requiring the services of a professional cleaning company. Depending on how they choose to clean, the company might need to bring in pure water – regular water can leave deposits on the panels. Cleaning crews also need specific cleaning tools to prevent scratches and other damage that could impact energy production. 

Another option could be to invest in a self-cleaning system. Although these systems increase upfront costs, they maximize efficiency over the installation’s lifespan. 

Shorter Panel Lifespans 

How often do we hear about the importance of changing our car’s oil to avoid catastrophic engine issues? 

The same “ounce of prevention” advice our uncles gave us years ago holds the same value when applied to solar systems. When soiling goes untreated, it puts the solar energy system at risk. 

Without regular cleaning, dirt and debris raises the operating temperature of the solar panel system, resulting in damage. If damage occurs, crews may need to repair or replace panels to regain lost efficiency. 

Worse yet, muck and grime could damage other parts and pieces in the solar system, including tracking components. These sensitive components are complex – anything preventing their movement will immediately impact performance and eventually cause them to break. 

Preventing Damage 

Despite the potential problems associated with soiling, keeping up with cleaning is sometimes surprisingly simple. 

Whether allowing nature to lend a hand or investing in top-notch tech, keeping panels clean isn’t always a battle. 

Let the Rain Help 

Sometimes, the easiest way to handle a dirty solar panel is to let nature take its course. 

Rain, wind, and snow do a good job of keeping solar panels clean, especially between scheduled cleanings. Depending on the panel’s angle and the environment, rain and snow might be enough to wash away dust, dirt, and other debris. However, flat panels may have difficulty self-cleaning because they lack tilt. 

In rainy or snowy regions, the weather can be an excellent way to maintain panel efficiency with little effort. During dry spells, dust and grime build up on the panels, but one or two rainstorms can quickly improve efficiency to near its maximum. 

Keep an Eye on Systems 

Problems are much easier to address early on than when left to grow. 

Monitoring systems attached to solar systems can detect power generation decreases using sensors, output metrics, or other tracking. Larger sites mean more sensors, especially on farms where conditions vary from one area to the next. 

Constant monitoring allows crews to investigate problems quickly and determine if they need to take action. 

Maintain a Regular Schedule 

Proper maintenance helps get the most out of every component throughout its lifespan. 

Just like changing a car’s oil regularly, set up a cleaning schedule for the solar site and follow it. Crews can clean panels in several ways but most commonly use water or soft brushes. 

Using pure water is the safest method for cleaning solar panels, but costly if it needs to be delivered by truck. Soft brushes or blower systems are a cheaper option but tend to be less effective. They also may risk scratching or damaging the thin film solar panels if done improperly. 

Beyond simple cleaning methods available today are developing technologies capable of cleaning solar panel surfaces without touching them. One solution uses electrostatic repulsion to magnetically remove dust from the panel’s surface, safely cleaning it without water. 

Join the Robot Revolution 

As our lives become more autonomous, robots and algorithms have taken on more of our daily work. 

Autonomous cleaning systems mounted onto the solar system can wipe dust from panels without humans. The process is successful in the Middle East, where sand and dust constantly threaten energy production. 

Solar companies have no shortage of automated cleaning systems, with dozens on the market today. Many operate on solar power, cleaning rows of panels without water. 

Keeping Up with a Constant Problem 

We can’t realistically protect solar panels from every bit of dust and debris. Luckily, we have plenty of tools to help us mitigate damage. 

It starts with finding optimal locations away from construction, agriculture, and trees. Later, it means investing in regular cleaning, using either water, brushing, or an automated system. Monitoring systems also play a role in reducing the threat of poor performance and lost productivity. 

The solar industry is booming, not only in the U.S. but around the world. As technology improves, other innovative solutions will soon come to market, keeping our panels clean and our future bright.

Has the Solar Industry Improved Under Inflation Reduction Act?

Posted on by bop-admin

When President Biden signed the Inflation Reduction Act (IRA) into law on August 16, 2022, it opened the door for a clean energy renaissance. 

Since then, a flurry of activity has occurred, especially in the burgeoning solar industry. Many new manufacturers and solar installations are cropping up across the country, but has the IRA had the intended effect we thought it would? 

What Did the Inflation Reduction Act Do? 

From the get-go, the Inflation Reduction Act laid out several ambitious goals. 

  • Make solar adoption more affordable 
  • Increase domestic manufacturing 
  • Create solar jobs 

In theory, the IRA would deliver the best of both worlds. The IRA instituted billions of dollars in programs, tax incentives, and development projects to bolster renewable energy production. Manufacturers also lined up, investing billions of their own dollars, with government support, to reshore solar development and production. 

But beyond the basics, the IRA has given the industry and government several things to cheer about. 

Solar Costs Drop 

When the IRA took effect, the inflation rate was over 8%, making it harder for businesses to fund projects. Despite the high cost of borrowing, the Inflation Reduction Act enhanced and extended programs to make solar more affordable. 

Among them were a series of tax credits, including Investment Tax Credits (ITCs) and Production Tax Credits (PTCs). Solar EPCs can claim ITCs upfront based on system costs. PTCs, meanwhile, are based on the amount of electricity produced over the project’s first 10 years. 

Every project is different, but deciding which credit makes more sense depends on project size, power output, and eligibility. 

Other credits encourage investments in low-income areas, rural communities, and abandoned sites like brownfields. These projects create jobs in underserved communities, add formerly abandoned sites to the tax rolls, and improve access to low-cost electricity. 

At the same time, utility-scale solar costs have leveled out in recent years, according to the National Renewable Energy Laboratory. Other costs, including labor and permitting, have also been resilient.  

Meanwhile, several tax credits tied to prevailing wages and brownfield development have helped lower costs. 

Domestic Manufacturing Blossoms 

As part of the IRA, the Biden administration pushed for more domestic solar manufacturing. So far, the Inflation Reduction Act has done what it intended to do. 

The IRA introduced Advanced Manufacturing Production Tax Credits for solar energy, which ties incentives to producing renewable components. Also known as 45X MPTC, manufacturers receive the credit per unit produced and sold. Eligible products include solar photovoltaic (PV) modules, inverters, batteries, trackers, and critical minerals. 

Another tax credit helping manufacturers is the Advanced Energy Project Credit (48C ITC). Like the previously mentioned credit, this applies to manufacturers building or upgrading facilities. However, it incentivizes companies to outfit their buildings or facilities with greener installations. These installations must reduce greenhouse gas emissions by 20% through low- or zero-carbon heat systems. 

Although the two credits cover different aspects of solar energy, companies cannot take both. 

Spurring Investment 

Beyond tax credits, the IRA allows more public/private investments to produce renewables. 

According to the White House, companies have announced about $265 billion in clean energy projects since August 2022. Many of those projects are in areas living below the median household average, bringing high-paying jobs and low-cost energy to underserved communities. 

Other information from the Clean Investment Monitor tells a similar story. In the first half of 2024, companies invested $147B into clean energy manufacturing and deployment. The amount has increased dramatically each year since 2022 as companies find ways to incorporate renewables into manufacturing, energy production, and operations. 

From opening new manufacturing facilities to upgrading critical infrastructure, solar and other renewables are thriving under the IRA. 

Bringing Back Jobs 

One of the most attractive features of the IRA was its ability to create manufacturing and skilled labor jobs. 

Since August 2022, the IRA has helped launch 330,000 new clean energy jobs. Manufacturing jobs are also coming home as the U.S. attempts to wean itself from overseas solar panels from Asia. 

Facts and Figures: Assessing the IRA’s Impact 

One way to analyze how well the Inflation Reduction Act has performed so far is to look at the metrics. 

What have we seen over the past 24 months, and is it enough to call the law successful? 

Clean energy investments are taking off. Source: Clean Investment Monitor (Tallying the Two-Year Impact of the IRA (cleaninvestmentmonitor.org))

Renewable Investments are Way Up 

Clean energy investments totaled about $147 billion through June 2024. 

Though the number is impressive, it’s more exciting when compared to investment figures before the IRA. In 2021, clean energy only garnered about $141 billion for the entire year. Seeing the number eclipsed in half the time is wildly impressive. 

All told, clean energy projects have pulled nearly $500 billion in investments. Some of the most welcome growth came from the manufacturing and transportation technology industries, with $89 billion invested. The total was more than four times the amount in the two years leading up to the IRA. 

More Projects Coming Online 

Officials have announced hundreds of projects across at least 40 states, with many tied to solar, wind, electric vehicles (EVs), and battery storage. 

According to RMI Analysis, the government has only disbursed about $66 billion in funds through the first half of 2024. More projects will come online in the next few years, including an estimated 320 GW of clean energy projects. 

More importantly, as new manufacturers and clean energy projects launch, added jobs will become available. RMI expects the solar industry alone will need 500,000 workers by 2033, doubling the number of jobs available today. As a result, we need more educational and certification programs today to develop tomorrow’s workers. 

Better Grid Resilience 

What good is generating a ton of renewable energy if the current electrical grid can’t support it? 

The IRA has provided a lifeline for grid operators to improve the grid. As more green energy comes online, including wind farms and utility-scale solar power, the grid must support it. That means investing in efficient power plants and transmission and distribution lines to move electricity effectively. 

Grid resilience could take several forms. One choice is to add to the grid to help it accommodate more electricity. Expanding the grid is not popular, as substations and massive transmission lines cause problems for communities. 

Another possibility is to improve transmission lines with new conductors. Most conductors crisscrossing the United States are aluminum wrapped around a steel core. The conductor design is over a century old (the patent is from 1908), so minor improvements could go a long way. 

A third option is to add more microgrids. Microgrids are small community grids that can run independently. If a storm takes down the larger grid, a microgrid can disconnect to still provide power to homes and businesses. 

The goal is to equip rural communities with microgrids powered by renewables and energy storage. Residents get reliable, low-cost energy produced close to home, and utilities can use microgrids to quickly pinpoint and correct problems during an emergency. 

Because the grid is such a critical piece of infrastructure, the government is stepping up to help. Luckily, the IRA and Bipartisan Infrastructure Law combine to create the largest investment in the power grid’s history. The laws will upgrade and rebuild infrastructure to accommodate new technology, expand service, and increase resiliency. 

Not All Sunshine 

No legislation is perfect, and the Inflation Reduction Act has shortcomings. 

Though the law does a lot for the green energy community, there are several holes, including some outside its control. 

The Rules Can Be Murky 

No government initiative would be complete without endless confusing and difficult rules. 

Between understanding how to qualify for the ITC and PTCs, navigating community, county, state, and federal regulations, and chasing down funding, getting projects off the ground is slow. Worse yet, the ITC and PTC dollars are sometimes not easy to qualify for and will only get harder to reach in later years. 

Despite the occasional trouble, companies have invested billions of dollars into developing a vibrant solar energy industry. 

Interest Rates Are Still High 

The long-term solar industry is growing by leaps and bounds, but high interest rates temper some investments. 

High interest rates make projects, facilities, and infrastructure upgrades more expensive. Everything comes with an extra added cost, potentially leading to delays or cancellations for builds. 

High interest rates have also resulted in a sharper increase in solar LCOE compared to fossil fuels. Though solar is experiencing an uptick in cost, fossil fuels still have a higher LCOE, making solar and other renewables more cost-efficient over the long run. 

Additionally, anticipated rate cuts in the coming months may kickstart investments in other projects, keeping the good times rolling. Investments are booming dramatically under the IRA despite currently high interest rates. 

We Still Rely on Others for Panels 

In June 2022, the Biden administration issued a two-year moratorium on solar panels from four Asian countries to keep projects going while domestic manufacturers caught up. 

The temporary pause is over, and new tariffs have been added to overseas solar products.  

Why? To protect a bevy of new manufacturers in the U.S. Without tariffs, cheap solar panels could flood the U.S. market, driving domestic manufacturers out of business. 

While solar manufacturing is making headway in the U.S., the industry cannot compete with low-cost panels. Tariffs keep the playing field even until U.S. manufacturers can sufficiently meet demand. 

Despite the tariffs and occasionally frosty relationship with China, the United States relies on many solar products. China controls roughly 80% of the global solar supply, from raw material sourcing to finished goods. 

Prices could skyrocket if solar EPCs and other installers lose access to overseas solar panels. American-made products are high quality but come at a high cost – sometimes too high for a budget to absorb. 

Spiking prices could cripple U.S. solar expansion until the domestic manufacturing supply chain catches up. 

Looking to the Future 

All things considered, renewable energy is moving in the right direction. 

Domestic manufacturing is increasing, and public/private investments are pouring in. Under the IRA and other initiatives, the industry should reliably expand over the next decade. Costs are stable, the government has incentivized expansion and development, and consumers are saving money in the long run. 

Though the long-term prospects look good, the upcoming 2024 election could affect the future of renewables. Depending on who assumes office and what agendas are announced, portions of the IRA could be rolled back or scrapped entirely. 

Overall, the IRA has done its job. Solar and renewable investments are exploding, the industry is vibrant, and there is real hope for a carbon-neutral future.

What Happens When the U.S. Solar Moratorium Ends?

Posted on by Mike Zimm

When the Biden administration implemented a tariff moratorium in June 2022 on solar panels and other products, the goal was to encourage more solar development while domestic producers and manufacturers could catch up.  

Fast forward nearly two years later, and the moratorium is about to expire. While some companies and industries have prepared for this day, others have been feverishly looking for alternatives. But with only a couple of months to go before new tariffs kick in, what can we expect to happen? 

The biggest questions we currently face are related to ongoing solar development. What will happen to current projects relying on foreign solar panels? Who stands to benefit most from reimplementing tariffs, and who could lose? How will disruptions like this impact our renewable energy goals?

How We Got Here 

The U.S. solar industry has been growing for years, mainly because of low-cost solar panels from China, but their relationship has had its difficulties. 

In 2012, the United States placed anti-dumping duties on Chinese photovoltaic (PV) panels containing crystalline silicon. Anti-dumping duties are a defense mechanism governments use to protect domestic producers from below-fair-market value products imported from overseas. 

Chinese manufacturers soon began moving their solar operations to Taiwan to avoid the tariffs. Not long after, in 2015, the U.S. expanded its duties to include Taiwan, too. 

By early 2022, the situation had bubbled into a full-blown problem. The U.S. Department of Commerce began investigating possible tariff circumvention by China through four additional countries, including Malaysia, Vietnam, Thailand, and Cambodia.  

One year later, the Commerce Department confirmed five companies out of eight investigated had circumvented anti-dumping duties. Other companies not under investigation at the time were also found to be skirting the tariffs.

So, Why Did We Issue a Moratorium? 

There has clearly been some bad blood brewing between the U.S. and China. But why did the U.S. issue a moratorium on solar panels, racking, and other components from Malaysia, Vietnam, Thailand, and Cambodia? 

Long story short – it had to. Thanks to the moratorium, solar projects could continue without delays. It also allowed the industry to keep growing while domestic production ramped up.  

The government also had time to investigate the circumvention allegations without handcuffing the solar industry during a vulnerable time.

The Sun is Shining for Solar. Why? 

By all accounts, 2023 was a fantastic year for solar generation. 

In 2023, the U.S. added more than 30 GWdc of solar power to the grid, accounting for more than half of all new electricity. But more solar power means more than just more electricity.  

Solar Energy Industries Association (SEIA) president and CEO Abigail Ross Hopper says solar energy generates tons of money through investments and jobs. 

“Nearly half of all solar capacity on the grid today has been installed in the last three years, generating over $120 billion of private investment and thousands of jobs across all 50 states,” Hopper explained. 

But a lot of importing had to happen to get to this point. In the first quarter to the third quarter of 2023, the United States imported about 40.6 GWdc of PV modules. In most cases, the panels were exempt from Section 201 duties, which protect domestic industries from import threats. 

Looking Ahead 

The SEIA forecasts another strong year for solar in 2024, though it will likely be less impressive than last year’s growth.  

Experts predict double-digit increases for commercial, community, and utility-scale solar this year, but residential install rates may slow. The organization attributes the potential slowdown to higher interest rates keeping homeowners on the sidelines until conditions improve.

  • Commercial – 19%  
  • Community – 15%  
  • Utility – 26%  
  • Residential – (13%) 

The states leading the charge are also the ones you would expect, with a couple of surprises. Texas, California, and Florida are sunny states with plenty of room for solar arrays. Colorado and Ohio, two surprising states making strides, are leveraging clean energy initiatives and solar-adjacent industries, respectively, to add renewable energy to the grid.

Solar Expansion Isn’t All Because of the Moratorium 

The moratorium affected the U.S. solar industry, but was it as significant as some may believe? 

It stabilized short-term supply chains for solar companies and allowed domestic producers to increase production. A steady supply of low-cost solar panels from Asia kept U.S. solar projects on time while preventing delays and cancellations that could have set the industry back. 

But the moratorium was only one piece of the solar puzzle. 

Price is generally an issue for new and emerging technology but is less problematic as it ages and improves. Solar panels are a prime example of this idea in action. Module prices have fallen 99.8% since 1976, including an astounding 15% per year between 2010 and 2020. 

Solar technology is getting better and more affordable every year, opening the door for mass adoption. 

But what good are solar arrays if communities and utilities have issues storing the vast amount of electricity produced? Utilities use fossil fuels when renewable energy sources like solar and wind are not generating enough power. As we move away from fossil fuels for renewable options, the need for battery storage becomes more critical. 

Battery storage costs have fallen at nearly the same pace as solar panels, slipping 85% over the course of a decade. Installing batteries to store electricity is becoming a more cost-effective solution for temporary increases in energy production.

Leaning Into Solar 

The hard costs of solar have long been a barrier to entry for solar companies, utilities, and homeowners. Luckily, the tide is turning and opening the door for more Americans, including those in smaller rural communities, to participate in low-cost electrical production. 

Hard costs have fallen steadily as technology, supply chains, and, most importantly, availability improve. At the same time, panel efficiency and battery storage are hitting record highs and showing no signs of slowing down. 

Unfortunately, unpredictable solar soft costs are a thorn in the side of utilities, companies, and community-scale solar projects. These costs are often difficult to gauge because different states have different permitting processes. Some states are also more solar-friendly than others.

Attractive Tax Incentives 

How does the government encourage more domestic manufacturing and renewable energy adoption in the U.S.? 

It all starts with making the right investments. 

Federal ITC (Investment Tax Credit) and PTC (Production Tax Credit) adders are an attractive incentive for solar companies and utilities. ITCs reduce upfront costs, making solar projects more affordable and helping generate profits faster. PTCs are more long-term incentives to encourage larger projects to help more consumers. 

Individual states, like Rhode Island, California, New York, Texas, and Florida, have many policies and incentives to spur solar projects. These can range from tax credits or deferrals to renewable energy certificates. Each incentive drives down investment costs while creating low-cost energy for consumers. 

Federal and state programs work together to promote cleaner sources of energy that generate electricity for consumers without raising electric bills. Consumers also have a say in renewable energy, opting for cleaner community-based options with fewer environmental impacts.

What Happens When the Moratorium Ends? 

June is quickly approaching, and with it comes the end of the solar panel moratorium. What happens after that is somewhat of a mystery. 

Prices will likely rise as the tariffs tack on more import taxes. Meanwhile, domestic production of photovoltaic cells, panels, and other solar system parts is starting to take off.  

There are currently 16 solar manufacturers in the U.S., including First Solar, the largest utility and community solar producer. The increase in domestic production has also brought in several large-scale international players, including QCells, whose solar panels are a leader in the residential market. 

The Supply Chain Could Hiccup 

The solar panel supply chain will not fall apart, but it could face strain caused by companies looking for other options. 

Why would companies look for other options if there isn’t a shortage of overseas panels? The panels may still be more cost-effective than U.S.-made ones, but tariffs, duties, and other taxes can drastically affect the cost of those PV products. 

Companies are always looking for more cost-effective solutions to bolster the bottom line. If doing business with Asia is too expensive, solar installers may consider using manufacturers in other countries. However, it takes time to set up new sources, which could add time to shipping and create delays. 

Domestic production would likely reduce supply chain delays eventually, but the products are more expensive. Companies also don’t have enough supply to address total demand – but that will change as more manufacturers come online. 

Although higher domestic prices seem similar to overseas tariffs, the shorter domestic supply chain reduces potential delays.

Short-term Struggles Lead to Long-Term Progress 

Ending the moratorium doesn’t mean U.S. solar companies will lose access to overseas solar panels and other products. 

If anything, it allows the U.S. to compete on a level playing field with other major exporters. Solar growth may slow in 2024 and even into 2025, but it will not be a death knell. Domestic manufacturing is rising, and the benefits far outweigh the perceived negatives. 

The United States has a lot riding on its renewable energy programs, including solar and wind. Developing and bolstering manufacturing tied to those industries helps us one day produce electricity without relying on traditional fossil fuels. It also opens the door for us to export our own products to other countries. 

We have a unique opportunity to address electrical grid reliability while reducing greenhouse gases. As with anything, it will take time, investment, and labor, but the country is making strides toward a cleaner future.

PURPA 101: How a 45-Year-Old Law Impacts Solar EPCs Today

Posted on by Mike Zimm

When the Public Utility Regulatory Policies Act (PURPA) was signed into law on November 9, 1978, it put the wheels in motion for renewable energy to thrive. 

PURPA was designed to address an oil crisis that had gripped the United States throughout the early 1970s and prevent future issues from happening by fostering more domestic energy independence, and its goals were simple:

  • Address and improve U.S. electric use 
  • Create pathways for better electrical utility energy efficiency 
  • Drive better rates for consumers and increase market competition 
  • Provide avenues for renewable energy development 

At the time of PURPA’s enactment, hydroelectric was a major renewable energy player. Since then, the industry has exploded with the expansion of solar energy systems, wind turbines, geothermal, biomass, and others. 

Several forward-thinking states, including New York, California, North Carolina, and Arizona, are leading the way. These states are investing in renewable energy at scale, enacting renewable portfolio standards, making permitting easier, and opening the door for companies to take advantage of substantial tax incentives. 

Today, more than 21% of our energy comes from renewable sources like solar and wind. We’ve also made massive strides toward diversifying energy sources while curbing fossil fuel use and making long-term commitments to renewable energy use.

What is PURPA? What Does It Do? 

Simply put, PURPA promotes energy diversification and competition in the electric generation industry. Though the word of the law sounds great, how does it translate to the real world? 

Qualifying Facilities and Avoided Costs 

Under PURPA, utilities must buy electricity from qualifying facilities at an “avoided cost.” This might sound like a packed sentence full of industry jargon, but the process allows utilities and renewable energy generators to work together peacefully. 

The first thing to do is explain what qualifying facilities (QFs) are. A qualifying facility is an energy production site generating less than 80MW of renewable power. It can also be a small co-generation plant producing electricity and thermal energy using a singular fuel source. Depending on the situation, the site must fit the descriptions in 16 U.S.C. §796(18)(A) and 18 CFR 292.203. 

Now that qualifying facilities have been explained, it’s time to move on to avoided costs. Avoided costs are the amount a utility company must pay a renewable energy generator for its energy. The cost is equal to the amount the utility would avoid by not producing the same amount of electricity but can be based on other negotiated rates. 

The avoided cost rules were updated with 2005’s Energy Policy Act, removing the mandatory purchasing rule for utilities in competitive wholesale markets for qualifying facilities larger than 20 MW. The rule remained unchanged for smaller electric power generators producing less than 20 MW, even in competitive markets.

Who Benefits from Avoided Costs? 

Avoided costs sound like something designed to handcuff utilities to renewable producers, but both operators benefit. 

Utilities avoid generating electricity when they don’t have to, leaving room for increased capacity when more power is needed. Purchasing electricity from companies using renewable sources like solar panels and wind turbines also helps offset pollution caused by traditional fossil fuels like coal, oil, or natural gas. 

Renewable energy producers benefit from avoided costs because they receive a guaranteed market to sell into. Because the utility must buy electricity from the renewable generating company, solar EPCs (Engineering, Procurement, and Construction) can better manage costs associated with installing panels, interconnections, and everything else tied to coming online. 

Renewable companies also qualify for state and federal exemptions that help reduce operational friction. These include mandatory purchase agreements, interconnection guarantees, and other requirements like public utility regulation and taxation from states. The rules help get renewable projects off the ground more quickly and profitably so they can start supplying electricity to consumers.

Why PURPA Makes Sense for Solar 

Although PURPA supports all types of renewable power, solar energy producers have taken advantage of the law in several ways. 

Fair Competition – Consumers get lower costs for electricity based on available and affordable options. By requiring utilities to buy renewable power, consumers benefit from more energy diversity and can choose what power they want. 

Environmentally Friendly – PURPA has been instrumental in adding more than 100 GW of renewable electricity to the grid. The increase in renewable power has also lowered our dependence on domestic and foreign fossil fuels while bolstering clean energy. 

Better Financing – Several tax credits associated with PURPA make it easier and affordable for solar EPCs to establish energy projects. Investment Tax Credits (ITCs), Production Tax Credits (PTCs), and even property and sales tax exemptions are just a few credits installers enjoy. 

Rules also provide small solar sites with a safety net in the form of guaranteed energy purchasers and markets. 

PURPA Gets an Update 

The 1970s had its share of turbulence, and the U.S. economy was much different than it is today. 

When PURPA was signed into law, the country had just recovered from a severe oil crisis, and there were legitimate concerns about natural gas supplies. Today, we have vast natural gas stores and low-cost energy production methods. 

Unfortunately, the gas crisis of the 1970s has been replaced by climate concerns, and countries are pushing to become carbon neutral by 2050. The situation has forced the U.S. to reexamine what PURPA is trying to accomplish and rework the law to fit today’s changing needs. 

The law has been through several amendments, most recently in 2020. Order 872 has been controversial but modernized several parts of PURPA to fit today’s economic climate. Depending on who you ask, the changes aren’t all for the better, but the goal is to make things as fair as possible for solar installers, utilities, and end consumers.

Avoided Costs Get Adjusted 

In the early days of PURPA, utilities could be locked into long-term fixed energy rates that sometimes meant paying far more for electricity than it cost to produce. 

The new rule allows for more flexibility in pricing using multiple indexes and sources, making for a better, more accurate, and transparent pricing structure. Though the rule impacts costs, it doesn’t touch capacity rates, which control how much electricity is produced. Still, losing the long-term energy pricing contracts could make it harder for solar installers to finance projects. 

Order 872 also changed the criteria for locking in long-term contracts. Previously, projects could lock in using power purchase or other agreements. Now it is moving toward companies showing financial viability before finalizing contracts.

The One Mile Rule 

Under the old rule, capacity was capped at 80 MW for same-site facilities, including energy facilities of the same type found within a mile of a Qualifying Facility. 

The new rule is similar but adds a 10-mile rebuttal. Anything further than 10 miles from the QF is now considered a separate site. This means facilities with the same power source less than 10 miles from a QF can qualify as the same site, including them in the 80 MW capacity.

Competitive Market Access 

Under this rule, utilities can avoid power purchase agreements if the Qualifying Facilities can access competitive markets. 

The old rule established the threshold for QFs to sell to utilities for avoided costs at 20 MW but has been lowered to only 5 MW. One wrinkle in the rule is that the lower threshold applies to power production but not co-generation plants.

Potential Concerns 

Though PURPA’s amendments impact utilities and solar companies, the goal is a steady supply of clean energy from multiple sources at prices the average consumer can afford.  

The changes also have the unintended effect of altering the relationship between the two entities – sometimes not for the betterment of solar installers. Ditching fixed revenue streams may create problems for companies wanting to build but can’t rely on receiving a steady check. Variable revenues mean companies are tied to the market rather than standard avoided cost metrics. 

Lower mandatory purchasing size thresholds also mean less market certainty against more competition. If there’s too much risk, it could have a chilling effect on solar EPCs and other renewable builders.

PURPA Changes Are Mixed 

The new rules have been around for about 3 years, and we’ve seen a few trends developing. 

Solar Isn’t Slowing – It was feared at first that solar development would be shaken. If anything, the pace has increased, especially as the government pushes for renewable energy development. 

Consumers Are in Control – Today’s electricity customers benefit from lower costs and have more electricity options than ever, including emerging renewable sources like solar and wind. 

Utilities Made Some Gains – Utilities have the right to negotiate for variable avoided cost rates that don’t tie them to a potentially costly contract. They also have the power to define rates based on several indexes and economic factors. 

Time will tell how these changes shape the industry landscape, but overall, PURPA has been a boon for the solar industry. Even as conditions change, it’s only fair the rules guiding us adapt and grow alongside it, too.

Can Solar Energy Improve Microgrid Performance?

Posted on by Mike Zimm

In 2003, a summer blackout caused by a severe storm cut power for more than 50 million people across eight U.S. states and parts of Canada. 

Since then, the country has invested millions of dollars into resilience projects, ranging from hardening the electrical grid to moving transmission cables underground. It’s also given rise to the concept of the microgrid. 

As companies, communities, and utilities inch closer toward renewable forms of energy, microgrids are becoming more popular. But what is a microgrid, and how does the rise of solar and other renewable sources impact their expansion? More importantly, can independent energy grids improve electrical delivery for the millions of people relying on it? 

Microgrids Explained 

If you’re unfamiliar with the term, a microgrid is a localized energy producer and provider connected to the larger power grid. It generates electricity to power communities, companies, and critical infrastructure and immediately disconnects from the larger grid to operate as a standalone power source during an emergency. 

There are hundreds of these systems across the United States. According to the Department of Energy (DOE), there are 461 operational microgrids established across the country, powering everything from hospitals and universities to emergency shelters, research facilities, and military installations. 

Other organizations are even more optimistic about the standalone grid’s adoption. The Center for Climate and Energy Solutions suggests nearly 700 operational microgrids are in the U.S., totaling 4.4 GW of electrical power. Meanwhile, Wood Mackenzie has said solar and storage capacity grew 47% from 2017 to 2022. 

Why They Work 

Microgrids work because they generate and distribute electricity to the surrounding community. Their size also makes them less vulnerable to widespread blackouts. 

When large-scale outages occur, microgrids disconnect and enter standalone mode. Disconnecting from the grid lets the system deliver power while crews work on the larger grid. 

Microgrids may have a home in combined heat and power (CHP) situations, too. CHP systems use one fuel source to produce electricity and heat for a building or group of buildings. Although they tend to be small systems powering a small area, larger ones can become microgrids once connected to the larger delivery system. 

Are Microgrids Solely Solar? 

Although they’re generally powered by renewable electricity generation systems like solar panels and wind turbines, fossil fuel generators can also power microgrids. 

Beyond being inexpensive to maintain, solar microgrids tend to be set-it-and-forget-it options. When the system has an autonomous operation system, it can produce consistent and clean energy for years with minimal manual control. 

Is Solar Power Generation Changing the Game? 

Photovoltaic (PV) microgrids are coming online across the United States, but are they making a difference? 

The short answer to the question is yes for several reasons. 

Clean, Low-Cost Power 

One of the major selling points of a solar-powered microgrid is that the electricity produced generates no harmful byproducts. Sunlight and wind are wholly renewable energy sources, reducing carbon footprints while maintaining energy production. 

It’s Scalable 

When communities or businesses want to increase the amount of energy, all they have to do is install additional panels and connect them to the system. 

Beyond that, it’s possible to increase solar efficiency (and power generated) by installing solar concentrators, sun tracking systems, and anti-reflection coatings. 

Low Operating Costs 

Solar costs have dropped dramatically over the years, making installing solar panels as affordable as ever. Unfortunately, the soft costs of solar haven’t seen the same decline but are improving. 

Though solar installations are still expensive for community and utility-scale projects, maintenance costs are low. 

Combines with Other Energy Sources 

Microgrids complement CHP systems, allowing them to make the most out of alternative fuel sources to produce additional electricity for storage or adding to the grid. 

Typically, CHPs use a singular fuel source like natural gas to efficiently generate power and heat without wasting heat energy. Adding rooftop or on-site solar panels creates more energy, reducing strain and fuel use for the CHP system. 

Another Step Toward a Revitalized Grid 

Microgrids can reduce strain on the overall electrical grid. 

As smaller operations come online, improvements must be made to the grid to improve its resiliency and accommodate the additional load. They also take some pressure off other power plants by reducing the amount of power they need to generate. In the case of demand spikes, those generation plants can quickly increase electrical output. 

Another occasionally overlooked benefit of microgrids is their ability to deliver electricity more efficiently than other power plants. Typically, power generation plants are found in remote areas away from cities and towns, resulting in line losses as electricity flows from the plant to substations. Microgrids avoid most line losses because they are much closer to distribution areas. Less distance means less power loss during delivery. 

Problems to Solve 

Although there’s a lot to love about smaller, independent grids, there are still some kinks in the system. 

Microgrids naturally make the electrical grid more complex because we’re adding new systems to an aging infrastructure. Upgrades are necessary to keep everything operating smoothly, but new interconnections come at a massive cost for installers and utilities. 

There is also the risk of utilities seeing microgrids as competition, seeing as how the smaller systems could reduce demand. To minimize difficulties with utilities, installers can build mutually beneficial partnerships to find common ground and solutions. 

Small Footprint, Huge Difference 

The evidence is clear; as the grid becomes more complex, microgrids will step up to offer reliable, consistent power to homes and businesses nationwide. 

Organizations like the NREL have invested in new grid technology and development for more than two decades, and the U.S. military is utilizing microgrids for both sustainability and self-defense. Additionally, smaller communities find community-scale solar installations a low-cost solution to rising energy costs through subscription and ownership stake plans. 

We have so much to be excited about, but everything is still a work in progress. Regulations are hard to navigate, and there isn’t a standard set of rules guiding microgrid installers or the utilities they work with. Installers also have to contend with high interconnection costs as utilities decide how to compensate communities and customers for adding electricity to the grid. 

Threats to the grid aren’t slowing down, making it vital for the U.S. to have a robust grid to supply power to everyone. Microgrids could be the answer to increasing reliability and safeguarding against future power outages, threats and attacks.

What is Community-Scale Solar?

Posted on by Mike Zimm

When most people think about solar installations, two types generally come to mind: rooftop and utility-scale. 

Rooftop or backyard residential PV solar panels provide enough electricity to power a home or small business. Meanwhile, utility-scale operations are designed to power towns, cities, and even regions. 

But there’s a third option emerging in the U.S.: community-scale solar. Larger than residential but smaller than utility-scale, community-scale installations range from a few megawatts to tens and power communities. 

Small Footprint, Large Impact 

True to its name, community solar projects are small, usually less than 5MW, but can generate enough electricity to power thousands of homes. 

Unlike utility-scale solar locations, which utilities develop on owned land, community solar farms live on leased land and get installed by EPC (Engineering, Procurement, and Construction) solar companies like Schuler-Haas, Nexamp, and TerraForm. Once complete, residents and businesses can subscribe to the site and receive credits. 

Smaller solar arrays are picking up steam in several states, including New York, California, Minnesota, and Massachusetts, but can be found in more than 40 states, Washington D.C., and Puerto Rico. Although solar installations were down 16% in Q2 2023 compared to 2022, about 226 MWdc of solar was added to the grid.  

The good news is the Solar Energy Industries Association (SEIA) expects growth from 2024 through 2028, thanks to better policies and more interest. 

How Does Community Solar Work? 

Community-scale solar is unique in size and operation, making it viable for people who can’t fully invest in solar but want to participate. 

Unlike installations owned by a single person, business, or utility company, community solar projects benefit groups of businesses and individuals throughout the service area. They can either pay to own a portion or subscribe to a community solar installation, allowing them to collect solar credits on their electricity bills. 

But what are solar credits, and how do they work? As the solar array generates electrical power, subscribers and owners collect credits based on the electricity produced. Those credits are then applied to their utility bills. 

According to the NREL, about 49% of households and businesses can’t have rooftop solar. For those who can’t afford a residential PV system or don’t have the right conditions to support one, community solar is an option. 

Even better, the energy produced by community solar goes straight from the array to the grid and is delivered directly to those living nearby. 

Is Community Solar Worth It? 

With all the talk of subscriptions and credits, community solar sounds complicated, but it’s a popular choice for consumers and builders for several reasons. 

  • Accessibility: Community solar allows people to invest and benefit from solar installations with a low-risk investment. They still reap the rewards of solar power without the massive upfront purchase to install panels. 
  • Cost savings: Community solar is a low-cost electricity producer compared to traditional fossil fuels. 
  • Supports the local community: Solar installations create jobs and can support sustained regional economic growth. 
  • Varies energy sources: Renewables can support traditional fossil fuels during periods of high demand. They can also help supply power in the case of an emergency when fossil fuel sources are offline. Solar arrays also help develop microgrids, which limit the spread of blackouts if a problem arises. 
  • Cleaner energy: Solar panels produce no by-products, and the sun is an infinite fuel source. Energy storage and consistent production are still troublesome, but the technology needed to address and mitigate those problems is quickly evolving. 

Of course, not everything is perfect. Every investment, including community solar, has inherent risks. 

Drawbacks and Concerns 

Despite renewable energy projects earning the praise of agencies, organizations, and the public, every emerging technology has its fair share of challenges. It’s especially true when attempting to integrate them into older installations. 

  • Interconnection Issues: According to a 2022 White House statement, about 70% of U.S. transmission lines are 25 years old or older, with many pieces coming online in the 1960s and 1970s. Unfortunately, that makes it harder for solar installations to integrate. In those situations, the difficulty of integrating leads to expensive delays, long waiting lists, and high connection fees to cover costs. 
  • Overpowering the system: Substations are designed to handle occasional overcharges or power surges, but not constantly. When a massive influx of electricity is added to the grid too quickly, it can lead to outages and damage. 
  • Location issues: In rural communities, solar installations may be miles from load centers. Getting power to the load center for distribution means more money, time, and labor is needed. These costs ultimately lead to a higher project cost and delayed ROI. 
  • Storage Issues: Solar energy is infinitely renewable but hard to store. Effective battery solutions are available but are expensive, and the technology hasn’t reached its full potential yet. Storage also becomes an issue in places where the sun isn’t shining every day and locations where snow is an issue. 

As technology improves and more utilities invest in renewable technology, it will become easier to interconnect with the larger grid. In the meantime, smaller installations can create microgrids that connect to the larger grid but reduce the effects of an outage in their communities. 

What is the Growth Potential? 

Thanks to several pieces of federal legislation, solar and other renewable energy sources are having a coming out party. 

Solar has accounted for about 45% of all new electricity-generating capacity added to the electrical grid this year, including 226 MWdc of community solar in Q2 2023. The good news doesn’t end there, as experts claim more advancements are coming. 

Global research organization Wood Mackenzie recently touted the strength of community solar, suggesting the industry could grow nearly 120% through 2027. The report also notes that the country could add another 6 GW of electricity to the grid by then. Currently, about 5.27 GW has been installed. 

Several states are leading community solar solutions, including New York, which hosts about half of the U.S.’s installed total. However, new laws, including the Inflation Reduction Act (IRA), have put solar in a much stronger position in the coming years. 

The IRA coincides with a 24-month moratorium issued by the White House on solar panels from four Asian countries: Thailand, Vietnam, Malaysia, and Cambodia. The moratorium expires in June 2024 and is designed to help get domestic solar production off the ground while giving companies and utilities access to lower-cost solar panels to complete ongoing projects. 

Domestic production is expected to improve for balance of system products like PV wire, panels, and racking materials, and organizations like Wood Mackenzie and the SEIA are confident the industry will flourish. 

High Potential, Low Cost of Entry

There are plenty of tax credits and incentives to get people involved with residential solar, but barriers to entry are still high. Options like community solar reduce investment costs while helping people do something good for the community, the environment, and their wallets. 

It also comes in handy for people living in low-income and rural areas, where credits can impact how much they pay for the electricity they consume. Rural locations also tend to have more space for solar installations, shortening the distance from the array to a load center. 

The benefits of community solar are undeniable, but there are still hurdles. Our electrical grid is rapidly aging, making it difficult to efficiently interconnect with existing substations and other infrastructure. If the substations and grid technology are too old, it will be harder to integrate efficiently. 

We’re getting closer to a world run by renewables. More advancements mean more opportunities for good-paying jobs, low-cost electricity, and better resilience in the face of storms and other emergencies. It will take time, but a renewable-powered future is possible.