Tag: labor

How Can Solar Developers Reduce Labor Costs?

Posted on by Gino Geruntino

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

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

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

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

Creative Cost-Cutting 

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

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

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

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

Why Is Labor the Next Cost-Saving Measure? 

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

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

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

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

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

Reducing Solar Labor Costs 

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

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

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

Automate Installations When Possible 

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

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

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

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

Lean on AI Mapping 

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

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

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

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

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

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

Pre-Fab and Modular Solar Materials 

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

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

PV Wire 

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

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

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

Racking 

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

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

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

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

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

eBOS, Simplified 

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

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

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

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

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

More Focus on Standardization 

Standardization, as the name implies, strives for similarity. 

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

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

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

Working With the Landscape 

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

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

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

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

Controlling Labor Costs is Possible 

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

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

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

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

Keeping the Industry Moving 

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

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

Factory vs. Field-Made: Comparing Solar Connectors

Posted on 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 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.

Production, Labor, and Land: The Push for Solar Energy

Posted on by Mike Zimm

You’ve probably seen renewable energy, including solar, receiving large-scale investments lately. 

It’s no surprise the solar industry is growing, especially given the world’s push to curb climate change. The U.S. solar market currently totals $35 billion and generates about 5% of our country’s electricity – nearly 11 times more than a decade ago. The trend is expected to continue, thanks to recent actions from the Biden administration, including the recently passed Inflation Reduction Act (IRA). 

The government’s actions are spurring excitement in the industry. Solar manufacturers are announcing large-scale production investments, including Qcells, Enel, Maxeon, and CubicPV. These projects are expected to increase domestic solar production more than five times, expanding from 7GW to more than 42GW. 

Though the IRA encourages companies to invest in renewable energy, the changing geopolitical climate plays a vital role. In 2022, a 24-month tariff moratorium was announced for solar panels coming into the U.S. from four Asian countries, including Cambodia, Malaysia, Thailand and Vietnam. The stay allows U.S. companies to import low-cost solar panels from Asia while giving domestic manufacturers time to increase production. 

The utility-scale solar growth has been nice, but there are still barriers to success, including: 

  • Reliance on imports 
  • Permitting and regulatory red tape 
  • Ongoing labor issues 
  • Public skepticism of solar power 

Combatting these issues may supercharge the clean energy industry and allow for more utility-scale solar power domestically. 

Fewer Imports, Better Results 

China is a key player in the solar energy industry. Not only does it produce a large number of low-cost solar panels, but it’s also a leader in energy storage. 

Although China’s solar panels are inexpensive, they come at a cost. There are questions about the country’s skirting of duties applied to them, and their low cost has made it difficult for domestic manufacturers to compete. 

COVID also showed us that supply chains can be easily disrupted, making getting supplies quickly or reliably harder. 

Recent developments like the IRA may reduce U.S. reliance on other countries. Contrary to what that sounds like, it doesn’t mean the U.S. is cutting China or any other country out. We’re simply narrowing the supply chain and bringing more production stateside. 

Since the IRA became law, innovative companies have jumped in to support solar expansion, committing to producing everything from modules and inverters to batteries, copper foil, and photovoltaic (PV) wire. Even structural products like racking and trackers are showing signs of increased production as manufacturers take advantage of the changing business climate. 

Unfortunately, we can’t flip a switch and immediately start production. It can take months, even years, for production facilities to come online. However, the hope is that with enough lead time to get production moving, the U.S. can become competitive in the solar space. 

Streamlining the Permitting Process 

Let’s be honest; the government is a lot of things, but fast isn’t usually one of them. Despite the Biden administration helping installers get low-cost panels and freeing up billions of dollars to promote renewables, there’s more to do. 

The permitting process is different depending on where the installers are. Even the Environmental Protection Agency (EPA) has called the permitting process a “patchwork” of regulations varying from state to state. 

To make the process smoother, the EPA introduced a toolkit to help developers, utilities, and communities navigate regulations, secure financing, and troubleshoot issues. But organizations like the SEIA are calling for more permit reform. In their eyes, reducing red tape adds jet fuel to a burgeoning industry, opening the door for more jobs, revenue, and opportunity. 

Although there have been attempts to streamline the building process for companies to set up distributed energy systems, none have succeeded. For example, the bipartisan American Energy Opportunity Act of 2019 bill called on the Department of Energy (DOE) to designate a board to help qualify communities with solar systems and certify installers in the space. It died without a vote or any other action. 

Establishing Better Career Promotion and Labor Relations 

As with any growing industry, thousands of skilled and unskilled jobs are available. The problem is finding enough people to meet increasing needs. 

Unskilled labor is in high demand, but so is the need for electrical, process, and chemical engineers, scientists, architects, physicists, planners, and more. The jobs are certainly available, more so with the increased focus. 

More than 250,000 people work in the solar industry, with job growth in 47 of 50 U.S. states. Among them, California, Texas, New York, and Florida are at the forefront of hiring and employment. Even states traditionally tied to fossil fuels are beginning to lean into solar. 

The labor shortage doesn’t have to cripple solar. If private companies, utilities, colleges, and governments collaborate, it simplifies recruiting efforts and builds industry interest early on. Training programs, apprenticeships, and veterans programs are only a few ways to introduce new workers to renewable energy occupations. 

Creating Positive Perceptions 

For some people, solar is the future of electrical energy and a way to rely less on fossil fuels. Others see PV panels as another way to muck up a hillside view. 

Solar has plenty going for it, but it also has its fair share of detractors. Often helmed by rural mobilization efforts, arguments range from deforestation fears and aesthetic issues for homeowners to agricultural concerns. The truth is that solar installations aren’t nearly the nuisance people think they are. 

Think about the last time you looked at a swamp and thought, “Wow, what a great place to build!” Solar sites aren’t typically found where other development is attractive or possible.  

Swamps, steep hillsides, and farmland are great locations for utility-scale solar installations because they don’t interfere much with our daily lives. For example, one Sun-Pull solar installation is tucked in behind a correctional facility. Another is in what used to be an unused swamp area off a busy road. 

In the case of farmland, agrivoltaics is literally changing the solar landscape. Recent studies have shown that combining solar panels with grazing areas or cropland can benefit both the land and the panels. Unlike other solar installations, which only serve one application, agrivoltaics let property owners use the land while leasing it out. 

What’s important to remember is that education breeds awareness, especially in communities where solar is a practical solution. Better access to tools and information can alleviate concerns and encourage residents to learn more about community and utility-scale solar. 

Solar Goes Mainstream 

This is an exciting time to be in the solar industry, but there’s still more to do. 

The industry needs continued investment from private and public sources. An influx of money will spur production, job growth, and energy reliability as the world turns more toward renewables. 

Solar manufacturing and installation jobs pay well, have job security, and can help revolutionize the electrical utility industry. More workers also push innovation, better designs, and increased interest in revamping the electrical grid. 

Solar power is the future of energy. As installed capacities increase and technology improves, getting much of our energy from the sun, wind, and water will become commonplace. But it’s not all about getting away from fossil fuels; this is a move toward unlimited sustainable, clean energy. 

The renewable revolution is here. With a sustained effort, the U.S. is more than capable of reaching its lofty energy production goals.

What Are the Soft Costs of Utility-Scale Solar? 

Posted on 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: 

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.