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What is Community-Scale Solar?

Posted on September 28, 2023September 28, 2023 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.

How Do Solar Investment Tax Credit Adders Work?

Posted on August 24, 2023August 24, 2023 by Mike Zimm

When it comes to the government, there’s no such thing as a simple, straightforward solution.

Unfortunately, for developers, financiers, and engineering, procurement, and construction companies, known as EPCs, that means knowing when, how, and where projects qualify for federal solar tax credits. Without them, it’s harder to complete jobs quickly and effectively.

When the Inflation Reduction Act of 2022 was signed into law, it opened the door for a massive uptick in tax credits for solar. However, not everyone qualifies for all the tax credits, and plenty of intricate rules must be followed to receive them.

Projects can qualify for ITC solar credits up to 60%, with adders tied to domestic materials and products, location, and low-income communities.

But what projects qualify for federal funding?

What is the Base ITC Credit?

When the Inflation Reduction Act was signed into law, it extended the shelf life of the Investment Tax Credit (ITC) for solar installations and increased its value.

From now until 2032, solar credits for projects are 30% and apply to businesses and homeowners. After 2032, the credit decreases until it’s finally sunset. For utility-scale solar projects larger than 1MW, the tax credit is 6% but rises to 30% if several criteria are met.

But what are the criteria, you ask?

For starters, a project qualifies for the 30% credit if workers are paid prevailing wages. The project also requires a certain number of apprentices to perform the work. There are also rules for apprentice-to-journeyman worker ratios, as outlined by the Department of Labor.

Accessing the 10% ITC Adder

Qualifying for the 10% domestic production adder requires projects to satisfy three criteria:

Must be in the United States or an associated territory
Must use new or like new equipment (cannot exceed a certain threshold of used parts)
Cannot be leased to a tax-except entity

The first 10% Investment Tax Credit available is the domestic content adder. As the name implies, projects must use a certain percentage of U.S.-produced materials to qualify. In the case of steel and iron, 100% of those materials must be U.S.-made as outlined by American Iron and Steel (AIS) rules, meaning everything from sourcing to final finishing has to take place in the United States.

With that said, the domestic content adder does not apply to subcomponents used for the project, including nuts, bolts, washers, etc.

Meeting the Project Threshold

As with any federal funding project, businesses must meet certain criteria before accessing the federal tax credit.

For the 10% ITC adder, manufactured products must comprise at least 40% of the total project cost. Over time, the threshold will rise, meaning more domestic products are needed to receive funding.

Offshore wind projects will follow a similar rising threshold schedule, but only 20% of the total cost-adjusted percentage needs to be tied to U.S. manufactured products for now.

The percentages increase over time, as seen in the table below.

Year	Domestic Product Threshold – Solar	Domestic Product Threshold – Offshore Wind
Before 2025	40%	20%
2025	45%	27.5%
2026	50%	35%
2027	55%	45%

The threshold for offshore wind will eventually reach 55% after 2027 to match solar projects.

Of course, the rules aren’t as black-and-white as one would hope, and there are breakdowns for how products are classified as domestic or foreign-made.

For example, only components mined or made in the U.S. count toward the total adjusted content rule. Let’s say you’re using a widget made with three components – two are domestically made, but the third was manufactured overseas. Although the widget was U.S.-made, you only get credit for the two domestically produced components.

The cost of the foreign-made component would be subtracted from the total cost of the widget, leaving you with the cost of the U.S.-made parts. Whatever that percentage is counts toward the total cost.

It’s a lot to manage, but the rule is simple: If a component, product, or material is made in the U.S., it counts! But besides the domestic manufacturing component associated with the adder, projects also need to meet one of several conditions, including:

The project has an installed capacity of less than 1MW AC
Construction began before Jan. 29, 2023
It meets prevailing wage and apprenticeship requirements

Projects meeting one of these conditions are eligible for the 10% credit.

Concerns About the Threshold

One common concern from solar EPCs is the difficulty of hitting the domestic product threshold due to a lack of U.S.-based manufacturers for solar products.

Solar companies have had trouble getting ahold of critical solar power system parts, including solar panels, inverters, BOS components, and racking materials. As the threshold rises, some installers fear the 10% ITC will be too difficult to reach.

In 2022, the government issued a moratorium on solar tariffs, opening the door for cheaper panels and parts from Asian countries. Though it brings an influx of cheap parts to help installers catch up on delayed projects, they also jeopardize the chances of their solar energy system receiving the renewable energy tax credit.

Ramping Up Domestic Production

The moratorium was offered, in part, to keep solar projects moving while domestic manufacturers got up to speed.

While increased federal support is a boon for companies trying to take market share from foreign competitors, the investment is a long-term strategy that leaves current problems unsolved.

First Solar is the major solar panel producer in the U.S., but the company does not have the size to meet current demand. Other solar manufacturers include, but are not limited to, Heliene, Mission Solar, JinkoSolar, SunPower, Silfab Solar, and Hanwha Qcells, which all produce different parts of the BOS, but have also struggled to meet U.S. demand in recent years.

However, several brands, including Qcells, have announced expansion plans in the coming years to support increased demand. For example, Qcells’ expansion in Georgia will add 2,500 jobs and double production at the facility by 2024.

Other Available Solar Project Credits

It might seem too good to be true, but the 30% ITC credit can rise as high as 60% in certain situations.

Energy Community Bonus

Solar projects can earn an additional 10% credit for building in a former energy community. What’s an energy community? It’s a location that is either a former brownfield site or a facility where coal, oil, or natural gas are mined or converted into energy.

If the site isn’t a brownfield, the project could still qualify if it satisfies one of several other criteria, including:

Either .17% direct employment OR at least 25% of local tax revenue from coal, oil, or natural gas production or storage AND an unemployment rate higher than the national average
Housed a coal mine that closed after 1999 OR a coal electric plant retired after 2009

Although many parts of the country qualify under at least one of these conditions, some sections don’t, including much of the Midwest.

Keep in mind that energy communities should NOT be confused with low-income areas.

Low-Income Bonus

This 10% credit is awarded to solar projects that sell electricity to lower-income areas and is for solar installations smaller than 5MW.

What’s interesting about this clean energy adder is that it has two tiers. Projects receive a 10% ITC if they’re located in a low-income community or on Native American land. If the installation is a qualified low-income residential building project, which, according to the Office of Energy Efficiency and Renewable Energy, requires “financial benefits of the solar facility must be allocated equitably between the residents,” it receives a 20% ITC.

The Credits Are Complicated, But They Have to Be

When the government gets involved, it typically comes with heaps of regulatory red tape, but the complexity of this program is vital for a few reasons.

Tying an ITC or PTC to the program encourages solar companies to buy American-made products, bolstering the economy and decreasing reliance on foreign-made goods like solar panels, racking, and PV wire.

Programs like this also help with nearshoring and reshoring manufacturing efforts. When domestic goods are prioritized, installers benefit from lower shipping costs, including tariffs and duties, since the material has a shorter shipping distance.

With higher demand, companies can hire and support additional jobs in emerging industries. These careers often pay well and offer room for advancement, making it possible to make a living in a burgeoning market. It’s also important to consider where the jobs are going. Establishing companies and projects in economically depressed areas and locations where fossil fuel plants once stood keeps jobs in those communities and even adds new ones.

Credits Keep Solar Moving

The U.S. is moving toward a sustainable future, but can solar tax credits work?

Solar is surging in the United States, not just because it produces low-cost energy for communities alongside hundreds of thousands of jobs. Installations can stabilize the electrical grid using new technology, keeping the lights on in homes. As the technology improves, solar could be a low-cost alternative to fossil fuels, reliably producing clean, renewable energy.

Renewable energy still has a long way to go to become the primary power source for the U.S., but a monumental shift is possible with a clear focus on solutions.

Factory vs. Field-Made: Comparing Solar Connectors

Posted on July 14, 2023 by Mike Zimm

Utility-scale solar installations have a lot of fragile parts and pieces. Small issues can result in thousands of dollars’ worth of lost energy, system damage, or even a fire.

According to HelioVolta’s SolarGrade PV Health Report, nearly 60% of solar installation issues were attributed to field-made connectors or wire management. Field-made connector issues alone attributed to one-third of all problems at solar sites. Within that segment, the percentage of critical and major issues attributed to field-made connectors was higher than any other damage type.

It’s fair to say connectors are a concern, but it helps to know when and how the connectors were made. Field-made connectors are installed on-site by workers, compared to factory-made ones attached to PV wire during production.

With that in mind, the blame then falls on either the connector or the worker who assembled it.

With so much money and energy on the line, companies must reduce liability and increase their installations’ reliability. Could factory-made connectors improve overall production and dependability?

The Difference Between Field and Factory-Made Solar Connectors

Companies have two options for connectors for a utility-scale solar power array: factory-made connectors or field-made solar connectors.

Factory-made connectors are installed onto the wire in a controlled environment. Performing the work in a manufacturing facility makes it easier to spot quality assurance (QA) and quality control (QC) issues so bad connectors aren’t sent out to the field.

When PV wire connectors are made in the field, they’re assembled by solar installers. Typically, field-made connectors are used to ensure connectors aren’t cross-mated with other “compatible” parts. During this process, workers use certified pieces and tools supplied by a manufacturer and then do the work themselves. The important thing to remember here is that both the parts and the tools are certified, meaning installers should only use what was supplied to them by the manufacturer.

Although several connector types exist on the market, some are more common than others. MC4 connectors, using a plug-and-socket method, are the current standard, and Swiss manufacturer Staubli is the original developer and manufacturer. Since the MC4’s inception, many other companies have started making their own compatible connectors, leading to a growing number of connector manufacturers and parts to choose from.

The problem is although there is a certification process for the connectors, cross-mated parts aren’t usually tested together as a single unit.

One Size Doesn’t Fit All

There are several types of connectors used in solar operations, including the MC4, MC3 (phased out by MC4), and Amphenol Helios models, but you can’t always use one with another.

While it might not seem like a big deal mixing and matching connectors across a solar site, HelioVolta noted in its SolarGrade report that pieces were either improperly installed or cross-mated in nearly 80% of field-made connector issues.

As installers rush to catch up with delayed projects and set up new sites, the resulting time crunch opens the door for mistakes. The industry is also growing, leading to an influx of junior installers who may not have enough experience to perform the job well.

What Does This Mean for Solar Sites?

Connector issues set the stage for several problems. From water and moisture exposure, bad PV connector points, and damaged wires from bad crimps or other mistakes, every issue could open the door to a costly disaster.

So, what happens when a PV system has connector issues? Quite a lot, actually:

Lost power and outages – When connectors fail, the solar panel is no longer reliably connected to the Balance of System (BOS). When that happens, the system produces less energy.
Ground faults or arcing – Ground faults and arcs occur when there isn’t good contact in the connector. Heat expands the parts over time, opening gaps and eventually creating an arc that can damage surrounding wires and materials.
Fires – When fires break out, they can quickly cause millions of dollars in damage. Once the fire is out, crews need to replace damaged and charred parts, adding sunk time and labor costs to the total bill.

Not every field-made connector is an inherent fire risk, but they may carry more risk than factory-made parts, according to HelioVolta’s data.

Avoiding Connector Issues

Limiting the number of fail points is critical when dealing with large utility-scale installations.

Buying factory-made connectors addresses a crucial failure point, setting your solar energy project up for better long-term success.

According to the SolarGrade PV Health Report, only 6% of issues at solar arrays were tied to factory-made connectors, much less than the 33% associated with their field-made counterparts. Manufacturer-made parts also reduce on-site critical and major problems, thanks to each manufacturer’s rigorous QC and QA programs.

The Best Connector for the Wire

Another benefit of factory-made connectors is that manufacturers can use compatible products with their wire and cable. The result is a more reliable connection, thanks to a standardized process retaining integrity across the board.

Installers may rush or get stretched thin, limiting their attention, resulting in potentially loose or poor connections. Furthermore, unlike field-made connectors that may lack QA assurance from another worker in the field, most manufacturers have staff on hand to spot potential concerns before the wire leaves the factory.

What Do Bad Connectors Look Like?

No matter what type of connector is used, you should know what damage looks like.

We recommend having crews inspect solar sites once every 6 months or so and check every connection point for common problems, including:

Gaps
Cross-threading
Sun Damage
Overheating
Other connector or wire damage

One of the easiest mistakes to make is using incompatible connectors. When connectors are cross-mated without checking for compatibility, it can put the solar installation at risk. Mismatched connections can generate a lot of heat, making them easy to spot with a temperature gauge.

It’s also important to ensure every installer is trained to properly work on solar panels, cabling and other balance of system (BOS) pieces.

Know What You’re Getting

Simply put – buying factory-made connectors reduces risk.

Manufacturers have strict quality control standards to prevent damaged or improperly assembled connectors from being shipped out to the field in the first place. If bad parts do get shipped, they can also work alongside customers to quickly correct mistakes before dangerous situations develop.

Not all field-made connectors will have issues, and many will be fine. But when the goal is to limit risk and liability on your renewable energy project, factory-made connectors are the way to go.

Avoiding Connector Issues on Utility-Scale Solar Sites

Posted on June 30, 2023 by Mike Zimm

Installation costs, labor, and product reliability often go together when bringing utility-scale solar projects online.

Despite declining hard and soft costs, there is still pressure to deliver projects on time and under budget. This means installers look for every way to save time and money.

Material and labor costs usually provide some savings, but the solutions aren’t always elegant. One issue creeping into the solar conversation is the reliability of PV wire connectors and harnesses that cut down on labor but increase the number of fail points in the balance of system (BOS).

When crews use harnesses, it means more connectors to bring wires together. More connections generally mean more opportunities for issues. Whether it’s installation related, tied to the weather, or just a random event, solar panels can’t do their job if connectors break.

By limiting the number of PV cable connectors, installers reduce the number of fail points and increase reliability.

Why Companies Use Connectors

Every solar project will require MC4 connectors, but the number needed depends on how the installer approaches the problem.

When companies use Sun-Pull bundled PV wire, it’s a 1:1 connection. This means one wire, one string, and one connector from the solar panel to the combiner box. Although the bundle has individual #10 AWG conductors, they can be terminated at different points along the run. As a result, workers only have to move down the line once.

If a company decides to increase the number of connectors used, it would need about half the amount of wire compared to a bundled cable solution. They could also use a larger gauge wire (in this case, #8 AWG) than the #10 AWG used in the bundled wire, reducing electricity lost from the solar panel to the combiner box.

Using connectors across the solar array sounds like a slam dunk, but several drawbacks complicate matters.

No Real Cost Savings

Although the installer needs about half the wire, the larger gauge wire eats into the cost savings. Not to mention, the project now requires harnesses and additional connectors to complete the job. All told, the savings are nearly negligible.

The company might find labor cost savings, which are reduced since workers are installing less wire. Using more connectors saves labor hours, but crews still need to take multiple trips down the line.

“It’s a less elegant method,” Sun-Pull Wire President Nick Eberly explained. “It will cut your labor in half, you only have to go down that row half the number of times because you’re installing a harness, but you’re installing double the number of connectors. You’re also still going down the row multiple times, compared to a bundled wire which requires going down the line once.”

More Connections, More Failure Points

It might not seem like a big deal, but too many connectors can cripple solar installations.

If you’ve ever left something plastic outside, you’ve likely seen firsthand what the elements do to it over time. The same can be said about the plastic housing connectors have that protect the pins and sockets inside.

When joining PV panels to the combiner box, the plastic connector pieces are exposed to the elements, eventually degrading them. Although they’re sunlight resistant, they’re still vulnerable to excess moisture, snow, and other environmental factors. If water sneaks into the connector, it can create a short.

“If you have a piece of wire that’s insulated, that can stay outside for a really long time in the elements,” Eberly explained. “Wherever you put that connector, that’s generally going to fail quicker than the wire itself. And every time one of those connectors blows, a fuse blows too. That lowers the output, and then you have to fix that.”

Eberly suggests a single conductor approach that eliminates as many connectors as possible. In this scenario, a wire runs from the solar panel to the combiner box, keeping sensitive pieces safe while limiting exposure.

It’s Not Always the Connector’s Fault

Sometimes connectors fail through no fault of their own – they get a little help from some unlikely sources.

The products widely used today are called MC4 connectors and were developed by Staubli, a Swiss manufacturer. Although the company owns about one-third of the product’s global market share, hundreds of global connector manufacturers exist, mostly in Asia. Unfortunately, there isn’t a universal standard, meaning manufacturers can produce similar products with subtle differences that could impact performance.

Beyond manufacturing, installers may cause connector failures. From putting connectors on backward and not crimping them hard enough to crimping the surrounding wire insulation, cross-threading, or under/over-torquing them, problems can occur.

As a result, issues could range from a loss of electrical output and performance to full-blown fires.

According to a 2019 Fraunhofer Institute for Solar Energy Systems report, many connector failures found on utility-scale solar arrays happen within the first five years. Additionally, a joint study by PVEL and HelioVolta found connector issues in more than 70% of commercial and industrial projects analyzed by HelioVolta.

With so many variations on the market, it’s difficult to ensure quality, leading to potential delays and setbacks. And when harnesses are used, connector failures often mean the whole harness needs to be replaced.

Small Parts, Huge Impact

Connectors may not seem like a big deal, but there’s a cascading effect whenever one fails.

Let’s say a connector fails at a large solar project. The system loses output because of the damaged connector, and the piece could create a situation where arcs, sparks, or fire occur.

When that happens, the utility or company has to pay labor costs for workers to go out and fix the damage and material costs for a new connector, PV wire, and other BOS parts. The company also loses money because the system isn’t generating as much power, leading to lower profits and potentially unhappy customers.

This isn’t to say every connector failure will cost hundreds of thousands of dollars to repair. But when multiple connectors fail on a large site, several tiny problems can become a giant headache.

One (String) and Done

There isn’t one way to wire a utility-scale solar power site, but it’s possible to save time, labor, and money by finding a system that works well for you.

Bundled PV wire is a simple solution that reduces fail points from the solar panels to the combiner box and lets workers travel each row once. There’s also no need for harnesses or multiple connection points to connect wires. It’s a safer, more reliable system with less risk of failures, such as electrical arcing or dangerous contact with DC electricity.

Like other types of renewable energy, solar is on the rise. Of course, work must be done to fully standardize the process, but the necessary steps are taking place. According to PVEL, the NEC was revised in 2020 to require connector pairs to be tested and certified for intermateability. It’s one small step toward a universal process in the United States.

Connectors are only one piece of a solar BOS, but they’re a potential weak point. Finding solutions that need fewer parts and are more reliable makes it easier to save money on future projects and speeds up the nation’s move away from fossil fuels.

Is Corporate America Leading Solar Adoption?

Posted on May 8, 2023May 8, 2026 by Mike Zimm

Utility-scale solar adoption is rising in the United States, but do we have some of our favorite brands to thank?

The U.S. Energy Information Administration (EIA) says more than 29 gigawatts (GW) of solar energy could be installed this year, comprising more than half of new energy coming online. According to the organization, the projected 29.1 GW would be more than double the next highest installation year in 2021.

Solar has been part of the ongoing renewable energy industry renaissance for over a decade. It’s not showing signs of slowing down, either – even with supply chain hiccups in 2022.

So, what’s causing so much change in the solar market, and why are people bullish on the future of solar power? It comes down to a few stars aligning at the right time, including policy changes, new funding and support, and better, more consistent supply.

It also helps that America’s largest and most influential brands are stepping up to add solar to their portfolios.

Utility-Scale Solar Moves Beyond Energy Producers

When you think about utility-scale solar, utilities are the first thing that comes to mind.

Although utilities are still the largest solar energy producers, corporations across the U.S. are testing the waters. Increasingly, these companies have aggressive renewable energy and carbon neutrality goals, making their investments a no-brainer.

Meta (which owns Facebook, Instagram, and WhatsApp) is leading the way with nearly 3,600 MW (3.6 GW) of solar power installed as of June 2022. Other corporate giants like Amazon, Microsoft, Target, Cargill, and Kaiser Permanente are following suit, investing in solar projects across the United States. In fact, 18 of the top 25 companies on the SEIA’s 2022 Solar Means Business report have 100% renewable energy or carbon-neutral goals.

Though the attention often goes to huge companies, the truth is hundreds of organizations are investing in utility-scale solar. Through June 2022, about 19 GW of solar can be attributed to corporate solar investments, and 27 GW more is expected to come online by 2025.

Why Are Companies Choosing to Go Solar?

Billion-dollar organizations aren’t usually known for their kindness, but investing in solar installations carries several benefits.

Not only do they generate electricity that can be used by the company to offset electricity costs, but the projects also open the door for more clean energy initiatives to offset greenhouse gas emissions.

Sustainability

According to the SEIA, nearly one-fourth of large-scale solar projects had at least one commercial buyer.

We know solar energy is one way of reducing our carbon footprint while distancing ourselves from fossil fuels. Reducing carbon dioxide emissions impacts greenhouse gases, which radiate heat in our atmosphere. Greenhouse gases are partially to blame for rising temperatures causing environmental concerns, including ocean acidification.

The good news is corporate solar installations are making a difference. According to the SEIA’s reporting, the amount of CO2 reduced is equal to removing 4.4 million cars from the road.

It’s Tax-Friendly

When the Inflation Reduction Act was signed into law in August 2022, it opened the door for homeowners, companies, and others to invest in solar energy.

Not every company is Meta, Walmart, or Amazon, but they can still take advantage of IRA tax incentive programs. These include the Investment Tax Credit (ITC) and the Production Tax Credit (PTC), which cover installation costs and electricity generation, respectively.

The Investment Tax Credit is upfront and reduces federal income tax liability for installation costs, depending on the system’s cost. The Production Tax Credit is determined by the amount of electricity generated. It reduces federal income tax liability based on how many kWh are produced during the system’s first 10 years.

Depending on the size of the installation and how much power is generated, sometimes the ITC is the better tax credit to choose. However, if the system produces a lot of electricity, the PTC is more beneficial.

There are several eligibility requirements tied to the incentives, but navigating them successfully usually produces long-term savings.

Low-Cost Electricity

No one can resist a bargain, including your friendly neighborhood conglomerate.

Renewable energy is one of the cheapest forms of energy out there, undercutting fossil fuels across the board. One reason for the low cost is the massive drop in solar project costs over the last decade. According to the World Economic Forum, solar prices have fallen roughly 85% in the last decade, positioning more companies than ever to take advantage of emerging technologies.

Solar isn’t the only renewable energy worth considering. Most renewables coming online today, including wind energy, produce electricity more cheaply than traditional fossil fuels like natural gas or coal.

Positive Long-Term ROIs

Establishing a solar farm is still expensive, but government tax incentives and generating low-cost electricity for decades lessen the sting.

Solar energy electrical costs are between .03 and .06 per kilowatt hour (kWh). Fossil fuels come in slightly higher, at .05 to .17 per kWh. Kilowatt-hours measure electricity usage based on a 1,000-watt appliance.

When stretched out across the typical lifespan of 25-30 years with little maintenance, it’s understandable why more companies are investing in panels. Panel warranties also usually last 25 years, making them a low-risk investment for companies with aspirational emission reduction and energy goals.

Renewables Become Commonplace

Establishing massive solar farms was once too expensive for everyone but the largest companies.

Today… not so much.

Building a solar array is still expensive, but the cost of entry is falling, allowing more companies to participate. Meanwhile, installations are more reliable and last longer, improving ROI across their lifespan.

This isn’t to say solar energy, wind power, geothermal energy, and other renewables will take over tomorrow. All renewables, including solar, must keep improving to increase efficiency and live up to the world’s ambitious climate change goals.

Corporate America, including some of the world’s most influential brands, is helping lead the charge. Of the top 25 companies featured on SEIA’s Solar Means Business report, 16 are on the Fortune 500.

It’s an exciting time to work in the renewable space. Solar technology is rapidly improving, and new innovations are on the horizon. Companies jumping on the trend today could potentially position themselves for massive future returns.

What Are the Soft Costs of Utility-Scale Solar?

Posted on February 1, 2023April 23, 2026 by Mike Zimm

If you’ve followed the solar energy trend with any interest over the past 10 years, you’ve likely seen a few massive changes in utility-scale solar operations.

As solar panel technology improves, one question remains: is solar energy becoming cost-effective enough to displace fossil fuels? The answer to that question is a resounding yes, but we can do more to improve costs and expand the solar industry’s reach in the United States.

While hard costs tied to utility-scale solar power have dropped considerably since 2012, soft costs haven’t seen the same changes. As the price of panels, PV wire, and the overall solar BoS decrease, the money spent on permitting, inspections, and operations become a larger piece of the pie.

Luckily, many experts believe soft costs can fall with some additional investments, training, and standardization.

Breaking Down How Utility-Scale Solar Costs Shake Out

Whenever a solar project gets underway, there are two expense types that the utility needs to keep in mind; hard costs and soft costs.

Solar Hard Costs

Hard costs are budgeted into the account, and their prices tend to be fixed. Items that fall into this category are the parts and pieces needed to actually get the solar array up and running, including:

solar modules
inverters
racking and other panel mounting systems
Photovoltaic (PV) wiring
energy storage

Though it’s safe to say these costs can be counted on to stay in a determined range, higher quality products may come with short-term and long-term savings that could affect soft costs down the line. For example, Sun-Pull’s bundled PV wire can drastically reduce installation time and labor expenses, cutting overall project costs. Over the past decade or so, hard costs have fallen by about 60%.

However, supply chain issues caused by the pandemic and our subsequent recovery have pushed prices slightly since 2020.

Solar Soft Costs

These cover everything else that isn’t a physical part of the solar installation. In the case of a solar installation, a breakdown of soft costs includes:

installation labor
permits and taxes (including sales tax)
sales promotions and new customer acquisition
administrative, marketing, and other overhead expenses
operations
supply chain expenses

Unlike hard costs, which are somewhat predictable, soft costs are tied to several factors. These could include permitting and inspection fees, hiring and training new workers, money spent on community programs and educational materials, marketing programs to acquire and maintain customers, software, and more.

Though soft costs have fallen, they have not had nearly the same drop as hard costs. Product prices tend to react more favorably in the face of more available options, better technology, and fewer restrictions.

Cutting Down on Soft Expenses

In 2017, the National Renewable Energy Laboratory (NREL) suggested soft costs made up more than 40% of a utility-scale system’s costs. Unfortunately, though overall prices have kept falling, soft costs are still about 36% of total utility solar expenses in 2021.

If prices are high here, they must be high everywhere, right? Not so much. Utility-scale PV soft costs in the U.S. are still higher than those of other countries with developed solar markets, partially due to a lack of combined efforts.

There is hope, however. The Department of Energy (DoE) says they can be mitigated with a few changes to get everyone on the same page. This includes standardizing codes and providing more educational opportunities for permit issuers, real estate professionals, and others in nearby industries. It also includes creating more effective integration strategies that make it easier to connect solar arrays to the overall electrical grid.

Part of the current issue is that plenty of money has been spent to create technology that reduces hard costs but isn’t always applied to reducing soft costs. As with any solution, getting from where we are now to where we’d like to be will involve a few investments.

Utility-Scale Solar PV Systems Can Benefit from Lower Costs

The solar industry isn’t alone in its fight to make utility-scale solar more affordable. It will take a concerted effort from the government, private companies, and social organizations to complete.

It requires the government to reduce the red tape associated with permitting and inspections. Companies need to look for organizational savings wherever possible, including software platforms that streamline operations and simplify processes where possible. Even variable expenses like marketing, attracting new customers, staffing, maintenance, and insurance offer opportunities to reduce overhead.

The goal should be to make utility-scale solar energy and other renewables accessible to more people. To accomplish it, we must do our part to keep installation costs down and encourage investment.

5 Solar Trends We’re Watching in 2022 and 2023

Posted on October 19, 2022 by Mike Zimm

The solar industry is growing by leaps and bounds, leaving many to wonder what the next phase of growth might look like and when it could arrive.

President Joe Biden has expressed the need for more renewable energy to meet the country’s ambitious environmental plans. The ultimate goal is to move to a completely decarbonized energy sector by 2050, but the United States will need a massive boost from its sustainable energy producers like wind, hydro, and solar power.

So what exactly does the future look like for solar? We’ve highlighted the five biggest solar power trends we think will influence the rest of this year and into 2023, and it’s a mixed bag. Some of what we’re seeing is incredibly encouraging, while other aspects give us some reason for short-term concern.

From the supply chain to overseas tariffs, these are the five biggest trends we’re watching this year.

The Supply Chain is Dictating Solar Costs

Unfortunately, the world has not recovered from the COVID-19 pandemic nearly as quickly as we had hoped for.

China’s on-again-off-again lockdowns have caused starts and stops in many manufacturing supply chains, resulting in lower availability of goods. Labor issues in the U.S. mean there aren’t enough dock workers and truck drivers to move raw and finished materials from ports, creating additional supply chain bottlenecks.

The lack of manufacturing production combined with less labor means that are fewer products available, leaving companies and utilities scrambling to source everything from solar panels and batteries to copper wire. These unintended shortages and delays have put the brakes on some utility solar projects, with some utility scale solar projects facing delays ranging from a couple months to next year.

According to the SEIA, solar prices were up 18% in 2021, though the spike can’t solely be attributed to a shaky supply chain (more on this topic later). The organization went on to say that about one-third of 2021’s Q4 capacity was delayed by a quarter, while about 13% of capacity slated for this year has been pushed back at least a year, or cancelled entirely.

The supply chain’s struggles are now becoming the entire industry’s problems. Short-term solar forecasts are down by nearly 20%, and reports suggest the industry could grow about 25% less than expected this year.

It’s not all bad news. Even with the pandemic, utility scale solar power costs dropped going into 2021, falling by about 12%. Short-term spikes in the cost of materials, including those used to make the panels, threaten to erase those cost savings, though relief seems to be on the way from the Biden administration.

The Solar Industry Is Dealing with Tariffs Galore

For several years, China has found itself the subject of anti-dumping regulations from the U.S. Simply put, dumping is what happens when a company offloads its product in another country for much cheaper than they would in their home country. According to the U.S., companies in China has been selling their solar technologies at a very low cost, making it harder for companies domestically to compete.

To fix the issue, the U.S. assigned tariffs to Chinese and Taiwanese solar panels in 2014, increasing prices by 50%. Chinese companies, though, may have used a loophole to avoid tariffs and still get their products into the U.S. by establishing companies in other countries like Malaysia, Thailand, Vietnam, and Cambodia and sending products to the U.S. tariff-free.

Today, more than 80% of the most popular solar modules come from those four countries. That means most of the panels used on utility sites in the U.S. are primarily coming from Asia, and most likely from a China-based company. In 2018, then President Trump instituted tariffs to increase the cost of manufactured products coming in from those countries.

Most recently, the U.S. Department of Commerce began looking into solar cell imports from Malaysia, Thailand, Vietnam, and Cambodia to assess whether dumping had occurred, but in early June, President Biden issued an announcement that it wouldn’t impose new tariffs on solar imports for two years. The move is expected to help get utility solar projects across the country back on track as soon as possible.

Long-term Solar Costs Will Decrease

Solar is already among the cheapest energy producers available today, but as production costs continue to drop and panel prices become cheaper and more efficient, it could open up more avenues to expand solar systems across the country.

As recently as 2020, electricity produced by utility-scale solar cost about 5 cents per kWh. The cost dropped to 3.5 cents per kWh in the most optimized regions. The hope is that solar panels become more efficient, while the costs of modules and BOS systems keep dropping.

So far the trend has held up. From 2010-2020, the cost of a utility PV solar system dropped by more than 80%. Despite a short-term increase in prices due to the pandemic, supply chain issues, and tariff concerns, overall trends show on-site project costs continuing to fall as more efficiencies are found.

For its part, Sun-Pull Wire is continuously working to revolutionize how PV wire is installed on utility scale systems. Sun-Pull’s cable solution, for example, cuts down on overall labor costs and project time by allowing a team of 3 to 4 people to install 1mW of string PV wire per day. Compared to single wire pulls, Sun-Pull’s PV wire can cut installation times by nearly 80%.

Faster installation times means more work gets done faster, increasing overall productivity of on-site teams, which helps companies address labor shortages or take on more projects with the labor they have.

Labor Shortages Are a Threat

Like many industries, solar energy is also facing a worker shortage.

Projections for the solar industry are positive, with estimates suggesting 1.5 million people could be employed by 2035, but in 2020 the industry only clocked about 231,000 workers – less than before the pandemic. To meet the Biden administration’s aggressive clean energy goals, it’s estimated that solar companies will need to employ about 900,000 workers.

With that said, productivity was still up and the hope is that the industry will continue its rapid ascent as more companies come online. As more projects are completed and adding power to the grid, SEIA believes annual growth will stay strong, but is somewhat dependent on the supply chain. Despite a shaky supply chain, the group says there is a lot of demand for solar and it will remain popular in the coming years.

The U.S. Bureau of Labor Statistics (BLS) agrees. As the country moves away from traditional fossil fuels for energy, the agency says solar, wind, and other renewables will need to step up to fill the gap.

The industry is also moving quickly to meet anticipated demand. Companies like Sun-Pull are solar innovators, finding ways to create cost savings for solar workers and energy providers. Sun-Pull’s bundled cable solutions allow even inexperienced workers to move more quickly and install PV wire to panels much faster than traditional single-pull methods.

Faster set-ups mean fewer people are needed on the job site, saving time, money, and manpower along the course of each utility-scale PV wire project.

Better PV Modules and Outputs Are Coming

In 2021, utility-scale solar produced nearly 114 million kWh, reflecting nearly 30% growth over the previous year. We expect outputs to keep increasing as more projects are added to the grid.

This coincides with other advancements in solar technology meant to increase energy production and efficiency. So far, the highest efficiency a solar panel has recorded is 47%, though most solar panels on the market today hover in the 20s. However, multijunction solar cells tend to perform better than other types.

Increasing efficiency is an important aspect of reaching our energy goals and there are several ways to make it happen. This can be done in a few different ways:

Better thermal management – This will help solar panels perform better in colder environments.

Minimize reflection – This requires non-reflective colors and coatings or using a textured surface to keep prevent solar rays from bouncing. More captured light means more efficiency.
Reducing recombination – Recombination occurs when electrons return to their regular valence band. Companies can reduce recombination by cutting down panel impurities and other defects.

Where Does Solar Go from Here?

The goal is for solar energy to eventually replace traditional power plants. While it’s certainly within reach, the industry has some catching up to do.

Solar PV energy is here to stay. Like wind, the Sun is an ultimately renewable resource that has the potential to create an incredible amount of electricity, especially in areas where the sun shines consistently. It also stands to benefit from continued enhancements, making panels and systems more reliable, efficient, and longer lasting.

Recent actions, including a moratorium on new tariffs, will go a long way toward making life a bit easier for solar companies. With fewer roadblocks and a slowly improving supply chain, the entire solar industry is poised for massive growth in the coming years.

We’re excited for the future and can’t wait to be a part of the solar revolution!

Is the U.S. Ready for 100% Renewable Energy?

Posted on October 12, 2022October 12, 2022 by Mike Zimm

Renewable energy has grown by leaps and bounds in recent years. But is the U.S. fully prepared to move forward with a 100% clean energy program?

In 2021, renewable energy produced about 20% of all utility-scale electricity in the U.S., but only about 2.8% (115B kWh) was supplied by utility-scale solar energy operations, not including the additional 49B kWh generated by smaller-scale solar operations. The number may seem small, but it’s been growing annually and gives people hope that a fully green grid may be possible.

Two things are clear if you’ve followed the news over the past several years. Fossil fuels won’t be the answer forever, and renewables still have a couple hurdles to jump to pick up the slack.

The U.S. has some pretty ambitious energy goals, and the Biden administration has hinted that it would like to take steps to move away from traditional fossil fuels. This includes an ambitious proposed plan to reach 100% clean electricity by 2035.

Though some experts believe it’s possible to hit the goal in short order, more than 60% of our energy is dependent on fossil fuels. It will take more effort, investment, and support to achieve.

Is the U.S. Ready to Take the Next Step?

At first glance, it might sound like a loaded question – but the answer may be yes.

Several high-level studies, including one by Stanford in 2015, believe the United States can ultimately run on renewable energy… just not by 2035. They peg the year at a more realistic and gradual 2050. Though the study has been questioned, inspiration can be taken from it and its methodology.

This isn’t to say progress isn’t being made in certain states and regions toward a fully renewable future. Rhode Island recently signed legislation into law committing to 100% renewable energy by 2033. The move puts the tiny state at the forefront of the renewable revolution, and it could be the first in the nation to go fully renewable.

Earlier this year, California also made headlines when the state was powered only by renewable energy. The conditions were perfect, allowing California to produce more energy than it needed using only renewable power.

The Golden State has proven that renewable, carbon-free, and sustainable energy sources can replace traditional power generation methods like coal and natural gas. In 2019, about two-thirds of the state’s power came from renewable energy systems like wind, solar, hydro, and nuclear. According to one energy manager with the Union of Concerned Scientists (UCS), investing heavily in solar and wind technologies will get us the bulk of the way, up to 90 percent, toward our clean energy goals.

Why It’s So Hard to Quit Fossil Fuels

If renewables are the future and everyone is scrambling to become the first to be rid of fossil fuels, how come we can’t seem to make it happen more quickly?

The problem is that despite all of the pollution and the trouble we go through to use fossil fuels, they’re energy-dense and efficient forms of energy production. This means they produce energy at a higher rate than other forms of energy, including wood and biomass.

Although oil isn’t typically used for electricity production, natural gas and coal are high-energy generators. They can pick up the slack on days the wind doesn’t blow and clouds block the sun’s rays from hitting solar panels.

Even on that record-breaking day when California produced all of its electrical needs using renewable energy, fossil fuels were working behind the scenes. Fossil fuel power plants take hours to come online, so it’s easier to keep them running than risk not having enough power during peak use hours.

How Do We Make the Move to 100% Renewable Energy?

The easiest way to increase the adoption of renewable energy is to continue investing in it.

This means investing in more green technology, including increasingly efficient solar panels, better wind turbines, and innovative batteries that can store generated electricity for longer. Part of the equation to reach a fully renewable future involves “overbuilding” the electrical grid, meaning we build enough infrastructure to supply more energy than we need.

Some projections spot the number at about 2.5 times the total energy demand to ensure we cover all the bases. That growth means utilities and companies must invest in solar and wind energy, requiring more workers, materials, and space to build.

Another issue we’ll have to tackle soon is energy storage. Wind and solar are variable energy producers, meaning the amount of electricity they produce relies on several factors. On perfect days, harnessing all the excess energy produced and effectively storing it can go a long way toward a clean energy grid.

Recently, researchers in Finland have created a device that allows low-grade sand to store heat energy for months. The heat energy is used to warm homes and even a local swimming pool. The storage system isn’t as efficient when turning heat into electricity, but could potentially be improved to meet rising energy demand with low-cost solutions.

Ensuring Workforce is Ready

Amid a labor shortage, companies across many industries find it tough to attract enough workers to keep operations running smoothly. Electricians, in particular, are in high demand, making it even tougher to attract and retain talent.

Sun-Pull Wire is one of many companies on the edge of innovation, developing products like bundled wire systems that can be installed quickly and save up to 80% of the installation time of string PV, helping with labor shortages and enabling DC installers to take on more projects.

The Government Needs to Step Up

If the U.S. wants to rely on renewable energy sources to power the country, support has to come from the top.

The Biden administration took a big step forward by suspending solar tariffs for two years against four Asian countries, including Cambodia, Thailand, Vietnam, and Malaysia. In another encouraging step, the government recently lifted solar tariffs on goods coming in from Canada, a move made in 2018.

Without the tariffs, utilities can import solar panels and other components at a lower price and reduce the number of delays and cancellations. Fewer tariffs also allow the installed solar capacity to continue growing at a healthier rate.

Unfortunately, tariff concerns did have an impact on the market. The Solar Energy Industries Association (SEIA) reported in its Q2 2022 insights that about 18 GWdc worth of projects were put on hold for at least a year. Another 450 MW was outright canceled.

Reduced tariffs aren’t all rainbows and butterflies, though. U.S. solar manufacturers may find it harder to compete against low-cost imports, claiming it as a disadvantage. On the other hand, utilities and other companies gain access to affordable panels, spurring the country toward its renewable energy goals.

Ready to Learn More About Solar?

Sun-Pull is ready to support a cleaner, renewable future with simple-to-use PV wire solutions.

Our knowledgeable team of solar experts is ready to answer your questions and get the right products into your hand as fast as possible with the shortest lead times in the industry. The Sun-Pull team is ready to support you from start to finish, including blueprint analysis, product help, and decades of solar experience.