Renewable Energy Shines Amid Unprecedented Growth

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

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.

How Does Humidity Impact Solar Projects?

Summer is here, and that means three things: barbeques, beach vacations, and seemingly constant humidity. 

Humidity is everywhere, but location and environment play a role. For example, relative humidity in Florida, Texas, and Mississippi is higher than in Arizona, New Mexico, and Nevada. This is because the former states are located near large bodies of water, as opposed to arid deserts. 

Unfortunately, humidity is becoming a problem in the United States. According to a 2025 scientific study, humid heat waves have become stronger. As temperatures rise across the board, they lead to more water evaporation. As water evaporates, it increases humidity, which is bad for people, animals, and solar panels alike. 

Luckily, solar developers have several tools to prevent humidity and moisture from damaging their installations. Knowing how humidity works is the first step toward protecting sites from damage and lost output. 

What is Humidity? 

Humidity is an environmental condition measured by the amount of water vapor in the air at any given time. This moisture typically comes from water evaporating from bodies of water, but can also come from plants, soil, and rain. 

There are two types of humidity (absolute and relative), but relative is the one most people are familiar with. Relative humidity determines the percentage of water vapor in the air compared to its potential maximum. As temperatures rise, relative humidity decreases. As temperatures fall, the air holds less water vapor, creating dew and fog. 

Easy access to water sources results in higher humidity levels for those living in those regions. This is why Florida and Louisiana have higher levels than drier states like Arizona and New Mexico. High heat keeps relative humidity low since the air can hold more water vapor. 

Though humidity is a constant presence, it becomes more of a threat during the summer when temperatures rise. Hot air holds more moisture than cold air, which is why you don’t hear about humidity during the winter – the air is drier. 

How Does Humidity Impact Solar Sites? 

It might not sound like it, but as the air outside gets moister, the resulting humidity can slowly cripple a solar farm. 

And like many weather-based issues, it impacts every component from the ground up. 

Solar Panels 

When humidity is a concern, so is condensation. As temperatures retreat from their daytime highs, water vapor in the air forms droplets. Those droplets fall onto solar panels, mixing with dust and other gunk already there. 

As the water evaporates again, the dust left behind sticks to the panels and becomes hard to remove. If enough dust becomes stuck, panels may struggle to collect sunlight, reducing performance. The attached dust is also dried on, meaning crews must do more intense cleaning. 

Beyond simply making panels dirty, moisture can also become trapped inside panels. If that happens, water can create a film that could increase panel operating temperatures and hurt power generation. 

Reduced Performance 

Reduced performance comes in many forms, including Potential-Induced Degradation (PID). 

PID occurs when there’s a combination of hot temperatures and high humidity. When long strings of panels are tied together, those on the ends of the row carry the largest electrical pressure difference. These voltage differences between the solar cells and their frames may create small leakage currents. 

So, how exactly does humidity impact performance? When small leaks occur, rain and humidity increase system conductivity, leading to greater losses. It can also add stress to panels, as humidity fluctuations can leave water droplets on the panels’ faces. 

But sometimes performance issues stem from something simpler. Excess moisture can cause a wide range of problems when it gets inside a panel. For example, errant water can cause delamination inside the panel, along with mold growth in or on its face. In both cases, the panel can’t efficiently collect sunlight, limiting output. 

Wire and Connectors 

If moisture gets into a faulty, damaged, or improperly installed connector, it can immediately affect the system. 

Wet connectors are a breeding ground for short circuits and faults, which can drastically reduce output. However, water can also enter through cracks in damaged wire insulation. 

When moisture penetrates a PV wire’s insulation, it can damage the wiring. If installation or maintenance crews don’t spot the damage, it could lead to arcs, shorts, and faults. Worse yet, it could spark a fire, damaging nearby panels and racking. 

Racking 

Racking may not be exciting, but it’s critical to a solar project’s overall power generation. 

High humidity introduces moisture to the equation, which can ravage unprotected metal racking systems. Solar developers should either invest in corrosion-resistant materials or use coatings to make the racks resistant to corrosion. 

Without proper protection, the systems are more likely to rust and show wear while leaving the door open for mold growth. If mold or rust forms around tracking system components, it could prevent panels from moving with the sun. 

Preventing Damage from Humidity 

While it’s impossible to stop humidity from occurring, it’s possible to protect solar sites from damage. All it takes is a little preparation and patience. 

  • Invest in hydrophobic coatings. These specialized coatings repel water, preventing it from accumulating or entering sensitive areas.  
  • Keep up with cleaning. Regular maintenance cleaning removes dried bits of dust and other crud from solar panels. It also gives moisture fewer opportunities to create mud on the panels, reducing performance. 
  • Don’t skimp on seals. Seals prevent outside debris and moisture from entering solar panels and causing damage to sensitive components. 
  • Invest in high-quality PV wire products. Work closely with manufacturers that install connectors in-house and perform quality control testing. Unlike field-made connectors, which could be mistake-prone, employees test every connector to ensure a tight seal. This prevents moisture from entering through openings and shorting wires. 
  • Use the right wire for the job. Utility-scale solar projects are massive endeavors and long-term installations, so buy high-quality wire when possible. Invest in UL 4703-certified PV wire, as other types may offer less protection. PV wire can withstand harsh outdoor environments and is moisture, weather, abrasion, and UV resistant. 
  • Explore your conductor options. Copper is the most common PV wire conductor, offering good conductivity across many applications. Aluminum is lighter than copper and more affordable but needs larger gauges to match copper’s conductivity and may oxidize over time. Tinned copper offers better corrosion protection than copper alone, but developers will pay extra for additional peace of mind. 

Risk, Rewards, and Resilience 

Humidity is a necessary and important component of our natural environment. However, solar technology is rapidly improving to make solar projects more resilient against its effects. 

As products and methods improve, solar sites enjoy increased clean energy production, higher levels of safety, and longer project lifespans. Meanwhile, consumers benefit from low-cost renewable energy, utilities and operators produce more power, and sites generate higher ROIs. 

Solar sites require an incredible amount of planning, and no one knows everything. When questions pop up, know who to reach out to for advice and guidance. Oftentimes, this means reaching out to a trusted manufacturer or distribution partner. Their insight can simplify the installation process and make it easier to maintain products over their usable lifespan. 

This ultimately leads to better, more efficient projects that benefit everyone.

Will Solar Interconnection and Permitting Improve in 2025?

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.

What is a Virtual Power Plant?

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.

Bright Idea: Converting Brownfields into Solar Farms

Go for a drive anywhere in the United States, and you probably won’t be far from a current or former brownfield site. 

According to the Environmental Protection Agency (EPA), more than 450,000 brownfields litter the U.S. But what is a brownfield, and why are governmental, public, and private organizations so interested in them? 

As it turns out, brownfields may play a vital role in our ongoing solar energy development. The EPA defines a brownfield site as “a property where expansion, redevelopment or reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant or contaminant.” 

Typically, brownfields are former locations used for industrial or commercial activities, including manufacturing, storage, or processing. Using this explanation, examples include factories, gas stations, railyards, and landfills. 

Unfortunately, their ties to chemicals, heavy metals, and other potential pollutants make them unattractive development sites. Unlike greenfield locations, which are undeveloped pieces of land ripe for expansion, brownfields require rehabilitation before use. 

Not Every Brownfield is the Same 

Although every brownfield requires cleanup before reuse, some need more than others. 

Depending on the location and surrounding area, rehabilitation could be worthwhile. Some sites have found new lives as golf courses, offices, shopping areas, mixed-use spaces, and even solar farms. 

But none of this happens without investment, and even then, it could be years before a site is ready for development. However, with enough time, money, and work, formerly forgotten properties can find new life and return to the tax rolls. 

From Brown to Bright 

One type of brownfield receiving a lot of interest from the solar community these days is landfills. 

Landfills are disposal sites for municipal solid waste (MSW), construction and demolition debris (D&C), and hazardous waste. There are two types of facilities: Subtitle D programs, which include non-hazardous municipal and industrial solid waste, and Subtitle C programs, which accept hazardous waste. 

Depending on the location, your local dump can operate for decades, collecting and compacting community garbage. But, like everything else in life, the good times have to end eventually, setting the stage for decommissioning. 

Once the landfill reaches capacity, workers pack it down, install mitigation systems for gas and water to escape, cap it with soil and plants to prevent contamination, and closely monitor it for 30 years.  

While this might seem like the end of the story, solar energy is breathing new life into former dumps. 

Making Something Out of Nothing 

According to a 2021 RMI report, the U.S. has over 10,000 closed or inactive landfill sites. 

Seeing an opportunity, the EPA launched the RE-Powering America’s Land Initiative. The program promotes renewable energy projects on former industrial sites like landfills, mines, and other forgotten places. 

So far, the RE-Powering program has completed 530 projects and installed 2,580 MW of power, including 93% from solar and 5% wind. Even more importantly, the program has completed brownfield redevelopment projects in nearly every U.S. state

Every state is different, but some offer financial incentives or streamlined permitting processes to rehabilitate brownfields. Certain states, like New Jersey, New York, and Massachusetts, offer both! 

But what has the program done for former dumping grounds? 

Small Projects, Massive Impact 

Of the 530 projects touted by the RE-Powering program, 60% (318) sit on top of landfills or landfill buffers. Though most of the solar projects generate less than 5MW of power, 16 produce more than 20MW of electricity. 

The EPA’s RE-Powering program is only one of many federal, state, and local projects promoting brownfield redevelopment. For example, Governmental agencies like the Departments of Energy and Transportation tackle national initiatives, while others, like the Appalachian Regional Commission, focus on specific areas. 

According to the EPA, its programs and grants, including the Brownfields Revitalization Act, are making a difference. Through 2023, grant recipients leveraged about $20 per EPA brownfield grant dollar received. But grant money is often only one part of the brownfield puzzle. The agency highlights strong partnerships between local governments, organizations, and public/private groups to find more money. 

Despite the financial costs, federal, state, and local initiatives are addressing several long-term issues at the same time. They are finding new and creative ways to reuse brownfields and meet increasing electricity demand. 

Why Landfills Make Great Solar Sites 

Let’s be real: landfills are often not great spots to put a community park. However, they’re excellent places to set up a solar site. 

But what makes a landfill conversion so alluring for solar development? Turns out former dumping grounds are a popular choice for several reasons. 

  • Landfills are not prime real estate development targets. They require money, time, and labor to rehabilitate and carry the stigma of former pollution. 
  • Dumps tend to be in areas near roads and electrical transmission lines. Their placement makes it easier for solar energy producers to move power from the site to the electrical grid. 
  • Landfill sites may already be zoned for renewable energy development, streamlining the planning and permitting process. 
  • Solar sites near populated areas like towns may have access to guaranteed power buyers, especially in high-demand regions. 
  • Landfills have a welcoming landscape for solar energy, with little shade, unobstructed views, and even hilltop access in some instances. 
  • The land is typically cheap, making it attractive for some buyers willing to pay for rehabilitation. 
  • Depending on their size, dumps can accommodate community- or even utility-scale projects. 

Combine this with the growing number of local and state incentives available, and it makes sense why landfills have become part of the clean energy game plan. 

Potential Concerns 

Like any other prospective site, former landfills come with considerations affecting the project. 

Brownfields require special attention because of former pollution, hazardous waste, or other environmental concerns. Bulldozing everything in sight creates more problems than solutions, and developers must show restraint. 

Solar developers need to be careful around the cap.  

Grading the land is one of the first things developers do when they install a solar array. Unfortunately, grating and excavating to level land for the solar racking can damage the cap. If equipment damages the cap, contaminants and gas could escape into the air and water. 

To prevent unnecessary damage, stage heavy equipment away from the cap. If crews need to grade or excavate the area, do it carefully. And ALWAYS follow state and federal rules to avoid dangerous situations. 

Don’t penetrate the cap or damage the landfill’s mitigation system. 

The cap prevents methane and other gases from escaping outside specially controlled areas. Damage to the system could result in dangerous leaks that put the entire operation at risk. 

If an employee damages the mitigation, monitoring, piping, or other systems, it could result in dangerous gases escaping. The gas could then ignite if it encounters an accidental spark or arc. 

Dust poses a risk to workers and the community. 

Dust is simply part of the job during every solar installation but takes on a different tone at a landfill site. 

During grading and installation for a standard solar project, most crews use water trucks to moisten dirt and keep dust from flying around. The problem is that water trucks are heavy. 

Heavy water trucks and other equipment can damage underground gas and drainage systems. They should not drive on the cap if they don’t need to and be careful when required to be near fragile systems.  

Erosion and stormwater runoff are always a threat. 

Landfills have systems in place to remove water from a capped site. When rain or other liquid enters the landfill, these systems quickly flush it out to prevent damage. 

When crews grade and excavate sites, it opens the door for moisture to enter the system. Grading removes vegetation and dirt from the top of the cap, allowing water to penetrate. When that happens, it can flood landfill gas piping, preventing gas extraction. 

Hard rain can cause more cap erosion and slope instability, reducing the cap’s effectiveness. 

New Life for Old Sites 

Thanks to their location and design, landfills have become an attractive choice for solar companies. 

Beyond generating low-cost electricity on redeveloped land, landfill solar farms create a host of other benefits, including: 

  • High-paying jobs in a rapidly expanding solar industry 
  • Increase tax revenue for communities where solar farms live. Solar companies reintroduce vacant or abandoned properties to the tax roll. 
  • Fewer brownfields. When companies clean up and redevelop sites, they remove many (but not all) contaminants from the location. 

As solar energy expands across the U.S., more landfills will inevitably become solar sites. For solar EPCs, utilities, and innovative companies, there are plenty of opportunities to take advantage of ongoing development programs.  

These programs streamline the solar process, especially in states embracing renewable energy across the Northeast and mid-Atlantic. Other programs may be available on a state-by-state basis but could require more research. 

Are you interested in brownfield redevelopment? Programs like the RE-Powering America’s Land Initiative are changing the landscape, but it’s a long-term effort requiring time, money, and work. 

Talk with your state’s environmental representatives or contact your regional EPA office to learn more.

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

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.

Who Manages the U.S. Electrical Grid?

Each day, more than 160 million customers across the United States rely on electricity flowing through hundreds of thousands of miles of transmission and distribution power lines to power their homes, cook food, and heat water. 

Americans use a lot of power – millions of MWh of electricity daily. So many people depend on consistent and reliable electricity to live, and ensuring power is available when it’s needed most is a monumental task. But who is responsible for the grid itself? 

The answer is complicated. 

How is the Electrical Grid Divided? 

The continental United States is huge, so it makes sense to break it up into regions. 

Three major interconnections comprise the U.S. electrical grid – the Eastern Interconnection, which encompasses everything east of the Rockies; the Western Interconnection, covering west of the Rockies; and the Texas Interconnection, which includes most, but not all, of Texas. 

The Eastern and Western Interconnections stretch north into Canada, except for Quebec, which operates its own AC power grid that connects to the Eastern Interconnection. 

From Interconnections to Councils… 

Within the three U.S. interconnection systems are six regional councils called Electric Reliability Organizations. These non-profit companies work on behalf of their regions to provide stable electricity to consumers and uphold NERC standards. They include: 

  • Northeast Power Coordinating Council (NPCC)  
  • Reliability First (RF) 
  • Midwest Reliability Organization (MRO) 
  • SERC Reliability Corporation (SERC)  
  • Texas Reliability Entity (TRE)  
  • Western Electricity Coordinating Council (WECC)  

The councils are managed and approved by the Federal Energy Regulatory Commission (FERC), with responsibilities delegated by the North American Electric Reliability Corporation (NERC). Together, the regional councils and NERC maintain and improve the grid across their respective zones. 

Often, it means sharing information and resources across all the councils and NERC, known as the ERO Enterprise. They develop messaging and guidance for utilities and other entities and innovate the grid’s performance without duplicating efforts. 

Subregions and Other Markets 

Some customers may be living in one of several subregions or coverage areas

For example, people in New York live in a Wholesale Electric Power Market, in this case, NYISO. NYISO stands for the New York Independent System Operator and maintains a steady and reliable power supply for the state’s electrical customers. It also regulates New York’s competitive generation program. 

Other coverage areas may include traditionally regulated or competitive retail markets. Depending on the state, it could impact how and what energy options are available. In traditionally regulated states, customers must buy electricity from local utilities serving their area. As a result, selection is limited. 

For states with competitive markets, customers have several suppliers, opening the door for more competition and options, including retail choice. Retail choice allows customers to choose who provides their electricity and even how it is produced. Solar installers may find these states easier to build and work in, especially since many solar and other renewable projects in traditionally regulated states tend to be utility-owned. 

FERC, NERC, and the Chain of Command 

It might seem confusing with so many federal agencies, commissions, organizations, and oversight committees floating around, but the chain of command is clear. 

FERC is tasked with managing electricity transmission of all types, including gas pipelines and hydropower sources. Every energy production source, transmission line, and distribution substation falls under its purview. But it can’t monitor thousands of generation plants without help. 

Through the Federal Power Act, FERC assigned NERC the responsibility of implementing and monitoring standards and regulations across every region. In turn, NERC delegates power to the six regional transmission organizations (RTOs). The RTOs work to identify areas of opportunity, improve efficiency, ensure compliance, and maintain the overall system alongside utilities. 

Independent System Operators (ISOs) also handle grid operations, though they are smaller than their regional counterparts. Unlike RTOs, which can cover a multi-state region, ISOs have smaller footprints, generally contained in one state. Both maintain fair competition in their areas and make sure power suppliers have access to the electrical grid, including solar energy generators. According to the Environmental Protection Agency (EPA), about two-thirds of electricity customers live in areas managed by an RTO or ISO. 

States Get Their Say, Too 

Just when there might be enough electricity generation oversight, the states jump in to take on some of the load. 

Public utility commissions regulate pricing in real-time and have the authority to determine where new power generators and transmission systems go. These organizations also have the power to raise and lower electricity, gas, and water rates. PUCs manage costs and quality and maintain the system for all customers, but doesn’t extend to municipal and cooperative utilities.  

States also have a fair amount of say in their electricity systems. California, New York, and Texas have been on the frontlines, developing clean energy plans to grow renewable energy sources in their states. They’ve also been instrumental in establishing and promoting reliability and efficiency campaigns to reduce reliance on fossil fuels like coal and oil. 

Utilities Are the Backbone of the Whole System 

Regulators are great for the public and the electrical grid but don’t produce the energy needed to power our daily lives. That distinction falls on the thousands of electric utilities and public power companies dotting the United States. 

Utilities like Duke, Exelon, and Pacific Gas and Electric can be private or public companies, and their goal is to generate electricity and deliver it as profitably as possible to end users. They’re often the boots on the ground, repairing, maintaining, and expanding the infrastructure while finding innovative ways to produce electricity and increase generating capacity. 

Who Enforces Rules and Regulations? 

It might seem like a twisted web of alphabet-soup agencies and committees, but everything flows from the top down. 

FERC is the federal agency in charge of developing and enforcing its rules and investigating internal and external complaints to determine what actions to take. When complaints come in, FERC is tasked with collecting facts tied to the event, issuing preliminary conclusions, and settling the matter with the offending organization or going to a civil trial if a settlement doesn’t happen. 

Typically, the agency aims to settle rule violations through the settlement process to quickly issue refunds, address concerns, and reallocate its employees to other pressing tasks. When the violations are especially severe, FERC can issue civil penalty fines, subject the utility to compliance monitoring and disgorgements, or other penalties. 

According to the agency, more than $861 million in civil penalties were issued from 2007 to 2022, along with another $586 million in disgorgements. 

Additional Monitoring Support 

Beyond FERC, there are plenty of support agencies to monitor and enforce its regulations, including NERC, the RTOs and ISOs in each region or state, and state-level public utility commissions. 

Like FERC, NERC has a team to monitor complaints, perform investigations, and issue fines or other penalties. It can also elevate concerns to FERC if it has to. The RTOs and ISOs are another set of eyes and ears, using their reach to monitor the markets for violations. When concerns are found, they can refer them to FERC to investigate. 

Further down the chain of command, state public utility commissions can investigate and enforce FERC powers when utilities and entities violate siting, construction, or pricing regulations. 

Finally, the Department of Justice can step in when violations stretch beyond civil penalties and are considered criminal. Cases where the DOJ might get involved include fraud, among other high-level crimes. 

Many Hands Make Light Work 

Millions of people rely on consistent electricity to live their daily lives, so the system has to work well for everyone. From the highest federal levels down to the local power company, every organization is on the same page and follows the same rules. 

FERC’s oversight and supporting agencies and committees ensure the lights stay on and prices remain manageable. The entire chain of command has overlapping structures meant to keep a watchful eye on utilities and other entities without stressing out organizations with a mountain of investigations. 

The result is a powerful series of checks and balances helping us power our future today, tomorrow, and for years to come.

Can Solar Energy Improve Microgrid Performance?

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.