How Does Humidity Impact Solar Projects?

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

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

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

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

What is Humidity? 

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

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

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

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

How Does Humidity Impact Solar Sites? 

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

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

Solar Panels 

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

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

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

Reduced Performance 

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

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

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

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

Wire and Connectors 

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

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

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

Racking 

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

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

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

Preventing Damage from Humidity 

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

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

Risk, Rewards, and Resilience 

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

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

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

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

Going Domestic: Why Builders Want American-Made PV Wire

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

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

Tailwinds and Headaches 

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

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

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

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

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

Does Buying Domestic Matter? 

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

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

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

Quality and Build 

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

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

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

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

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

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

Supply Chains and Lead Times 

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

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

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

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

Weighing Costs with Lead Times 

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

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

Budgetary Constraints 

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

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

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

Project Requirements 

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

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

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

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

The Case for Imported Wire 

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

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

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

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

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

Small Line Item, Huge Impact 

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

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

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

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

What is a Virtual Power Plant?

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

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

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

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

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

What is a VPP? 

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

But what does that mean in human terms? 

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

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

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

How Does a VPP Work? 

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

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

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

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

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

VPPs Are NOT Smart Grids 

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

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

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

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

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

Why They’re Gaining Steam 

Storms are getting worse, making power outages more severe. 

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

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

Reducing Risk, One Neighborhood at a Time 

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

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

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

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

Long-Term Savings 

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

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

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

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

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

Taking Advantage of Incentives 

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

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

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

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

VPPs for Consumers 

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

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

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

Downsides and Cautions 

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

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

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

Not Enough Participants 

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

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

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

Not a Replacement for Grid Upgrades 

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

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

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

Everyone Plays a Part in Clean Energy 

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

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

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

Solar Project Anatomy: Exploring Remote Monitoring Systems 

When you ask the average person about solar, their answer generally extends to what they see – endless rows of solar panels, racking systems, and thick bunches of PV wire.  

But beyond the main parts and pieces, vital accessory systems keep utility-scale solar operations running smoothly. From tracking weather and fighting fires to system monitoring and electrical grounding, these systems are the eyes and ears of every site.  

Though every solar project is unique, most large-scale sites share several monitoring systems. When they combine, the data they collect gives operators unparalleled insights into every aspect of their site.  

Remote Monitoring Systems  

Like the home security system protecting your house, cloud-based remote monitoring systems (RMSs) protect solar sites from potential damage.  

These systems monitor performance metrics and track voltage, output, and system status. Sensors collect data in real time and then send it via an internet connection to the cloud. Operators can access the data anytime to get vital information, see status changes, and make system changes remotely.  

Remote monitoring systems make operators more proactive, keeping power flowing with less boots-on-the-ground troubleshooting.  

Eyes in the Sky  

When used correctly, RMS identifies system failures before they cause damage or lost production.  

Sensors collect data 24/7, using the information to create baselines and trends. If something occurs at the solar site – for example, damaged panels or inverters, the system pings the operator. From there, the utility or owner can take action.  

But not every issue is a full-blown disaster. Remote monitoring’s ability to spot trends makes it easier to find improvement opportunities. If performance drops at certain times, for example, operators can send a crew out to look for shaded panels. A consistent performance decrease over time could signal soiled panels, meaning a cleaning might be due.  

Having access to detailed reports is a game-changer for operators. Remote monitoring works alongside other systems, including weather stations, to produce comprehensive reports using historical data. With it, operators can constantly make tweaks to improve performance. 

Remote Monitoring Limitations  

Unfortunately, remote monitoring systems aren’t perfect.  

Rural solar installations may not have reliable internet access, making it harder to send data to the cloud. With that said, operators have several options, including 4G/5G wireless connections, satellite internet, or point-to-point wireless networks.  

Additionally, like any internet-connected device, there’s always the risk of a cyberattack. If that happens, bad actors could access sensitive data and systems. For operators, cyberattacks may result in power disruptions and shutdowns or data loss and theft.  

Finally, monitoring systems can be expensive. Operators may need outside experts to set the system up correctly and ensure it’s collecting accurate data. With that said, hiring the right team is critical to getting everything you need out of the RMS.  

Solar Weather Monitor - Sun-Pull Wire

Weather (Meteorological) Stations  

Like remote monitoring systems, weather stations collect vast amounts of data. The difference is that the data they collect is environmental, not performance.  

Weather monitoring stations collect everything from solar radiation and temperature measurements to rain and snowfall totals, wind speed, and humidity data. Once combined, the data paints a picture of the overall conditions to help operators understand performance data.  

Together, RMS and weather data can answer questions tied to overall performance. For example, the two systems can explain what happens during weather events, giving operators the tools to develop maintenance, cleaning, or repair plans.  

Neither Snow, Nor Rain, Nor Heat…  

Although weather is unpredictable, it can be used to spot seasonal trends over time. 

As the WMS collects data, operators see more clearly what to expect during different parts of the year. It might not seem like much, but in areas with four distinct seasons, weather trend data is invaluable. With it, crews can plan for cleanings, maintenance, and other work when openings allow. 

For the average operator, accurate data does more than make scheduling easier. Over time, forecasting accuracy increases, backed by years of tracking data. Based on expected weather trends, operators can change panels’ tilt and facing to meet conditions and increase production.   

Trend data also helps operators determine the amount of risk weather events may cause to the system. Historical data can determine what past events did to the system, giving workers valuable clues about what to expect. 

More information leads to better risk management and fewer setbacks. 

Weather Monitoring Limitations  

Although WMS data is comprehensive, it’s also highly technical.  

Operators need specialists to set up and calibrate each monitoring station. Unfortunately, large solar farms can cover many acres, and conditions change from one spot to another. Depending on the size of the site, operators could need multiple stations to get full coverage and accurate data.   

Despite the cost, meteorological stations drastically improve the quality and quantity of data collected, especially when combined with remote monitoring systems.  

Fire Suppression Systems  

A fire is one of the worst things that can occur at a solar site.  

PV systems produce a lot of electricity, and fires can start if there is an arc, fault, or wire damage. Unfortunately, many utility-scale systems sit in remote areas, making it hard for crews and firefighters to respond quickly.  

When fires occur, expensive repairs are needed, potentially costing millions of dollars to get back up and running. 

Solar Farm Fire Risk Factors  

You’d be surprised how little it takes for a fire to erupt at a solar power site.  

Common causes include:  

Electrical issues: Small nicks in the wiring can create arcs and faults, leading to fires. Other components also pose fire threats, including overheating panels, inverter issues, and even short-circuiting battery storage.  

Lightning: Solar sites occupy a lot of land, making them targets for lightning strikes. When lightning hits the installation directly, it can damage panels, wiring, inverters, and other components. Indirect strikes are just as bad, leading to power surges and ground currents that could increase fire risk.  

Objects and plants: This is a two-fold problem. Plants and objects touching panels or electrical components risk getting shocked, electrocuted, or starting a fire.  

Meanwhile, plants or trees that cover parts of the solar panel with shade create hot spots. Over time, hot spots can lead to overheating and reduced power generation.  

Accidental damage: We all make mistakes, but sometimes mistakes lead to massive problems down the line. Nicks in the PV wire, damage to the panels, or even a faulty connector can start a fire.  

Fighting Fires from Afar  

Site operators have several options for remote fire suppression, ranging from water and misting to foams and carbon dioxide.  

Fire suppression systems monitor the site for issues and act to extinguish fires before they can spread. If a fire breaks out, these systems are the first line of defense, protecting valuable components until responders arrive.  

Of course, as good as a fire suppression system is, it doesn’t replace vigilance and planning. Operators need a fire prevention and protection plan to keep crews, local responders, utilities, and others informed.  

Grounding Systems  

When power surges or faults occur at a solar site, they threaten the entire system.  

Utilities rely on grounding systems to create a low-impendence route for electricity and prevent temporary overvoltage (TOV). When TOVs happen, the voltage rises above its usual levels for a sustained period. Unlike lightning strikes, which may spike voltages for a short time, TOVs could highlight fault conditions or other problems.  

Grounding systems are critical to any solar installation. Without them, solar sites could see component failures, fires, and total system failures. Grounding reduces the potential difference between the earth and energized surfaces is almost zero. 

Keeping Up with Codes  

From a safety standpoint, installing a grounding system makes sense. But if that isn’t enough evidence, effective grounding is required by many code departments.  

For prospective solar operators, that means working closely with local code departments to follow NEC standards. They might seem like additional hoops to jump through, but they ensure every project is as safe as possible.  

In other cases, many insurers require proper grounding for all systems before issuing an insurance policy.  

Systems for a Better Solar Energy Industry  

Solar sites across the United States rely on an intricate web of monitors to protect and optimize their sites.  

Let’s face it – clean energy projects are huge investments. If there’s a way for operators to protect them with cost-effective solutions, they will.   

Combining performance data, weather information and trends, and fire detection monitoring helps operators maximize their investments. As more features tie into the ever-growing Internet of Things (IoT), operators will continue making better decisions faster. Additionally, their teams are more effective because they aren’t relying on hunches and incomplete data. 

Solar energy is taking off in the United States – it’s only fair to assume site technology will grow alongside it. Most importantly, better technology leads to improved power output, more reliable systems, and happier end users.

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

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

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

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

Efficiency Killers 

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

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

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

What Causes Dirty Solar Panels? 

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

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

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

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

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

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

Not all Soiling is Dirt 

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

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

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

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

Powering Down: How Soiling Impacts Production 

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

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

Reduced Power Generation 

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

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

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

Higher Maintenance Costs 

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

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

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

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

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

Shorter Panel Lifespans 

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

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

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

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

Preventing Damage 

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

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

Let the Rain Help 

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

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

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

Keep an Eye on Systems 

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

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

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

Maintain a Regular Schedule 

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

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

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

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

Join the Robot Revolution 

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

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

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

Keeping Up with a Constant Problem 

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

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

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

Bright Idea: Converting Brownfields into Solar Farms

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

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

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

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

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

Not Every Brownfield is the Same 

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

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

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

From Brown to Bright 

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

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

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

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

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

Making Something Out of Nothing 

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

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

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

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

But what has the program done for former dumping grounds? 

Small Projects, Massive Impact 

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

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

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

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

Why Landfills Make Great Solar Sites 

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

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

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

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

Potential Concerns 

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

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

Solar developers need to be careful around the cap.  

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

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

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

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

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

Dust poses a risk to workers and the community. 

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

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

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

Erosion and stormwater runoff are always a threat. 

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

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

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

New Life for Old Sites 

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

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

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

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

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

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

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

How Are PV Jumpers and PV Adapters Used in Solar Systems?

When you think about the parts of a solar array, PV jumpers and adapters probably aren’t the first things that come to mind. 

That’s because solar arrays are complex projects relying on thousands of small, often unheralded pieces coming together to produce electricity. Unlike readily seen parts like the panels and racking, jumpers and adapters seem like an afterthought until you need them. 

Despite their small size, PV jumper cables and adapters have a gigantic role in keeping the system working well. Often going unnoticed, they ensure power moves seamlessly from the panels to the combiner box and eventually the grid.

The Low-Down on Solar Jumper Cables 

Solar jumper wire works similarly to jumper cables for cars, transferring electricity from one solar panel to another. 

These short lengths of PV wire have MC4 (or site-specific) connectors on both ends and connect solar panels together along a row. Their job is to connect solar panels to one another, usually the positive and negative terminals on neighboring panels.  

When fully connected, extension cables connect panels into a parallel system to create a series of panels. They also allow more streamlined installations to move power from the panels to the larger electrical grid. 

Jumpers also have a purpose outside community- and utility-scale solar installations. Residential direct current (DC) solar systems use them as a home run to the inverter box and to connect devices through optimizers and micro inverters.  

Made to Order 

Depending on the system, manufacturers can custom-make PV jumper wire to fit specific site demands. 

Although workers in the field can make their own jumpers, it’s tough to ensure quality is the same across the board. Manufacturers remove the guesswork, ensuring every cable is consistent and quality-checked before arriving at the job site. 

The result is a faster installation with fewer mistakes because workers aren’t cutting, crimping, or fitting connectors. 

What are PV Adapters? 

MC4s are among the most common connectors used on solar installations but aren’t the only ones workers may see. 

If the site is older, you may come across older MC3 connectors. MC3 connectors were widely used in the early and mid-2000s but fell out of favor because they didn’t have locking mechanisms. Without a locking mechanism, the connectors could disconnect, resulting in lost power and potentially dangerous situations. 

Other sites may not have connector requirements specified. Companies may try to find cost-effective connectors like MC4s but with subtle differences. 

Solar adapters are critical to unifying the entire site when connectors must be uniform. PV adapters have different connectors on each end, letting workers quickly convert from one connector type to another. 

The wires allow workers to avoid tearing out thousands of feet of wire, replacing countless connectors in the field, or sacrificing power generation. Sites also maintain continuity throughout the installation, limiting the risk of faulty connections or lost power. 

Steady Flows and Time Savings 

Although they’re easy to overlook, prefabricated solar assemblies like PV jumpers and adapters keep solar arrays operating smoothly. 

Jumpers connect individual panels to maintain steady power flows from the panels to the greater system. Meanwhile, adapters ensure every connector is the same across the site to maintain continuity. 

Both save time and money on the job site and ensure the system works as well as it should. Without them, installations and retrofits would be a time-consuming nightmare, leaving the door open for potential site problems. 

When it’s often said the whole is greater than the sum of its parts, these two cables do a pretty good job of keeping solar sites running at peak power.

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

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

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

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

How We Got Here 

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

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

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

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

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

So, Why Did We Issue a Moratorium? 

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

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

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

The Sun is Shining for Solar. Why? 

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

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

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

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

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

Looking Ahead 

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

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

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

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

Solar Expansion Isn’t All Because of the Moratorium 

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

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

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

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

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

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

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

Leaning Into Solar 

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

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

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

Attractive Tax Incentives 

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

It all starts with making the right investments. 

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

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

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

What Happens When the Moratorium Ends? 

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

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

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

The Supply Chain Could Hiccup 

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

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

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

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

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

Short-term Struggles Lead to Long-Term Progress 

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

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

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

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

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

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

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

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

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

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

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

What is PURPA? What Does It Do? 

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

Qualifying Facilities and Avoided Costs 

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

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

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

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

Who Benefits from Avoided Costs? 

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

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

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

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

Why PURPA Makes Sense for Solar 

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

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

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

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

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

PURPA Gets an Update 

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

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

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

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

Avoided Costs Get Adjusted 

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

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

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

The One Mile Rule 

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

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

Competitive Market Access 

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

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

Potential Concerns 

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

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

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

PURPA Changes Are Mixed 

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

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

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

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

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